It is worthwhile knowing that there are certain investment accounts that will shield you from tax, and this allows you to enhance your returns on all of your investments. These investment accounts are known as tax wrappers. Tax wrappers can be used to protect you from Income Tax, Capital Gains Tax, Inheritance Tax and Corporation Tax.
The most common form of tax wrappers are Individual Savings Accounts (ISA’s) and pensions. An ISA enables you to keep everything that you earn on your savings tax free, therefore maximising your returns. Pension schemes such as Self Invested Personal Pensions (SIPPs) and Small Self Administered Schemes (SSASs) have personal tax advantages. Many investors are looking to have these accounts set up so that they can be tax efficient and get more out of their investments, similar to how many investors are now looking at offshore investment.
Portfolio Management Solutions
There are investment management services available to investors that will see tax efficient investments, which are all managed as part of an overall strategy. When you use the services of an investment management firm it ensures that you will be able to achieve your goals and objectives from all of your investments. This could be to maintain your current wealth, to minimise the amount of tax you pay, to grow the value of your assets or to save for retirement. This is achieved through portfolio management solutions along with tax efficient investments all suited to your particular needs and requirements. You will find that many investment management firms will develop your portfolio through a combination of UK and international equities, property funds, cash and alternative investments.
Different Tax Wrappers
One of the tax wrappers is called a Self Invested Personal Pensions (SIPPs) wrapper. Investments within this tax wrapper can bring the benefits of the tax advantages you get with a personal pension, and when you use an investment management firm, you will get pension investments that are suited to your needs. These investments can change as your circumstances do, and this includes before and after you retire.
When you sell a property or asset, transfer it to somebody else or exchange it you will face tax on the amount that you gain. This is known as Capital Gains Tax (CGT). CGT management services can help you to make use of your CGT allowances each year. In addition, Small Self Administered Schemes (SSASs) are company pension schemes where investors can get tax benefits, and the underlying investments within this wrapper can be managed for you as well.
Whether you are looking to save for the future, maintain your current wealth or pay less tax you will find tax efficient investments the best way to do this. Investment management firms are able to manage your assets to suit your particular needs, and all done using various tax wrappers to help you maximise your returns.