Putting your investments in order could save tax

Investments that produce gains rather than income may well be more tax efficient for some. With careful management capital growth in investments may well be achieved without paying tax, as opposed to paying income tax on income generating investments.

In the current tax year (2008/09) up to £9,600 in total gains (after reliefs etc) can be made tax free by each individual. This can be quite attractive for higher rate tax payers or even for children whose parents are higher rate tax payers. However financial advice should always be sought before taking action.

Couples - have you considered putting investments that are not tax free into the name of whoever pays the lower rate of tax? If not then it may be worth doing so to reduce your combined tax bill.

 Over 65’s could consider investments which do not count as their taxable income. If taxable income exceeds the annual limit (currently £21,800) then the age related allowance available will be reduced. By taking careful action, personal tax bills can be reduced, without the need for giving away investments.

Please contact Andy Scott on 0118 923 5807 or email if you want to find out more.