Take advantage of tax efficiency

Tax is an unavoidable part of life. But there are ways of reducing the amount you pay on your investment returns, which could make a big difference to your financial future.

Each year, you’ll receive a new ISA allowance which can be used to shelter a portion of your money from capital gains tax and income tax. The allowance is currently £20,000 for 2019/20. It’s worth taking advantage of this allowance every year – because if you don’t, any unused amount cannot be carried over to the following year.

And it’s not just ISAs. Pensions are another tax efficient way of investing over the long-term. Not only can you hold money in a pension free from personal tax; you can benefit from tax relief. This means that for every £80 you pay in, you’ll receive a further £20 in your pension pot. If you’re a higher rate or additional taxpayer, you can claim even more tax relief through your tax return.

You can start to access your pension from 55 (changing to 57 from 2028) and there are tax considerations applicable to withdrawals.

Helping you maximise the tax-efficiency on your savings and investments is one of the first things we would consider. There is a range of allowances available – and we’ll recommend structuring your investments in a way that can help you to take advantage of these.

Skipton’s Technical Services Manager, Ben Smith

Here to help

For more information on our service and to find out whether you could benefit from financial advice, call our specialist team today for a free consultation over the phone on
0800 731 5342 or request a call back.

Why invest with advice from Skipton?

We’re proud to have offered a financial advice service for 30 years and have helped thousands of customers make plans. We're right here to do the same for you.

Why choose Skipton

Our recommendations are likely to include stock market-based investments. These are not like bank and building society savings accounts as your capital is at risk and you may get back less than you invested. The value of your investments and any income from them may fall as well as rise.

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