Tax efficient investing
Learn more about tax-efficient investing opportunities
Not all investments are tax efficient, but we can help you make the most of those that are.
Cash and Stocks and Shares ISAs
In 2010, some 15 million people in the UK invested in an ISA*, taking advantage of investments that are free from personal income tax and capital gains tax.
In 2011-12 you can invest up to £10,680 in a tax-efficient Stocks and Shares ISA. You can only invest up to £5,340 in a Cash ISA, but this reduces the amount you can invest in a Stocks and Shares ISA.
If you already have a Cash ISA you can transfer it into a Stocks and Shares ISA. Remember that you may not be able to transfer back to a Cash ISA if you exceed the maximum subscription allowance.
The Standard Life Stocks and Shares ISA gives you a wide choice of investments including our MyFolio Managed Funds. These aim to maximise potential returns for a given level of risk and are run by Standard life Investments professional investment managers.
Pensions
Investing in a pension gives you a number of tax advantages:
- You get tax relief on the money you pay in to your pension
- Your pension fund grows virtually tax free
- You can take part of your pension pot as a tax-free lump sum.
Tax relief on your investments may change. Its value may also depend on your individual circumstances. The information provided here is based on our understanding of current law and HM Revenue and Customs practice.
Bonds - you decide when tax is paid
You have to pay tax on any profits you make on an investment bond, but some bonds let you control when you pay this tax. These bonds are ideal for a range of needs including estate and retirement planning, tax-efficient saving or even if you’re planning to move abroad.
Inheritance tax – planning for the future
If you’ve been saving and investing all your life you’ll want to make sure your wealth is passed on tax-efficiently when you die. You might not be able to avoid inheritance tax completely, but there are things you can do to reduce your tax liabilities now.
Important information
Investment returns aren’t guaranteed. The value of your investment can go up or down so you may get back less than you paid in.
*Source: TISA in collaboration with Cimetric. The ISA Market – A Definitive Review, March 2011.
