7 Key Benefits of Tax Efficient investing
From saving for later life to reducing tax bills and contributing to the UK's thriving startup landscape via venture capital, investing tax efficiently can pose a host of benefits for investors keen to minimise risk and maximise returns, and understanding how they work is key to utilising them.
With wrappers such as the SEIS allowing you to claim back up to 50% of your investment off your income tax, your net returns could be increased notably.
Through schemes such as the SEIS and EIS that offe loss relief, should an investment not achieve positive returns, investors can offset any losses against their inheritance tax or capital gains tax bill.
By claiming back potentially significant sums of your investments through benefits like 50% income tax relief, you have the ability to cut your tax liabilities considerably.
for Later Life
Pension wrappers such as SIPPs and SSASs give investors greater control over where their pensions are invested, providing access to a diverse range of alternative investments.
Targeting varying degrees of risk and return, and existing across a broad range of asset classes and industries, tax efficient investments can play a key role in a diversified portfolio.
Residing in the alternative investment space, tax efficient investments are often more resistant to the high market volatility traditional investments arprone to.
Whether it's funding the next wave of transformative startups or regional housebuilders, tax efficient investments can generate long term, positive impact effectively.