Are You Making The Most of Your Tax-efficient Investing?

ISAs, Lifetime ISAs, SIPPs and beyond

Tax Efficient Saving and Investing

Sarah Hollowell
Tax & Trustee Services

Tax planning beyond the building blocks of ISAs and SIPPs

Whether you are a seasoned investor looking to maximise your tax-efficient contributions in the current tax year, or you are exploring a Stocks and Shares ISA or Lifetime ISA for the first time, Killik & Co is home to a wealth of insight and expertise to help you make the most of your savings and investments.

As we approach the end of the tax year, optimising your savings and investments should be at the top of your financial planning agenda. Allocating savings to tax-free wrappers such as ISAs, Lifetime ISA and SIPPs can accrue significant financial benefits immediately and when combined with a long-term view of your lifetime savings, can be a very powerful thing.

From our complimentary Tax Efficient Savings Guide below, to our Wealth Planning Team, and Specialist Investment services, our family of dedicated experts are on hand to advise you on how to make the most of your investments, whatever your circumstances.

 

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The Basics

ISA

With a Stocks & Shares ISA, you can invest up to £20,000 a year tax-free

LISA

Invest up to £4,000 a year and benefit from a government bonus of up to 25%*

SIPP

Annual contributions of up to £40,000 for most UK residents and added tax relief from the government*

Trusts

We can advise on all matters associated with both the creation and the ongoing management of all trusts

Tax allowances

From income tax and savings allowances to personal allowances and exemptions, we consider all allowances relevant to you

Annual tax return

Our Personal Tax Service can organise the preparation, completion and submission of annual tax returns on your behalf

For the Family

JISA

An allowance of £4,128 but all the tax-free benefits of a standard ISA

Junior SIPP

Invest £2,880 and get tax relief from the government to make this up to £3,600

Child Trust Fund

Continue to invest up to £4,128 a year until your child is 18

Other Considerations

Estate Planning

Simply put, Estate Planning aims to ensure that as much of your wealth goes to your loved ones, and not the tax man

Tax-free gifting

From the £3,000 annual exemption to large potentially exempt transfers, giving away assets isn’t as simple as you might expect

Capital Gains Tax

How much do you need to pay and are you missing out on any potential reliefs?

VCTs

Invest up to £200,000 a year and claim up to 30% tax relief

EIS

Invest up to £1m a year and claim up to 30% tax relief

Which is better – a Lifetime ISA, an ISA or a SIPP?

Following the introduction of the Lifetime ISA this tax year, the decision to open a Lifetime ISA in place of say, a standard ISA, or a personal pension, must be considered with care. We have summarised some of the key criteria below to help you make the most of your lifetime savings in the new tax year. With a dedicated team of Investment Managers and Wealth Planners, we can help you create a blueprint for action, crafted specifically to meet your needs.

Product

Lifetime ISA

Investment ISA

Personal pension

Minimum age

18

18 (adult ISA)

18 (adult ISA)

Maximum age

40 to open, 50 to contribute

No

75 (for tax relief

Basic rate tax relief on contributions @20%

No

No

Yes

Higher rate tax relief on contributions

No

No

Yes

Tax free growth within the wrapper

Yes

Yes

Yes

Government bonus on contributions @20%

Yes, capped at £1,000 per year, £32,000 total

No

No

Tax-free withdrawals

Yes

Yes

First 25% only

Penalty-free withdrawals

Subject to conditions

Anytime

From 55 (57 from 2028)

Penalty rate

25% of total fund

n/a

55% (if over the lifetime allowance)

Recommended Killik Explains video:

SEVEN RULES FOR TAX EFFECTIVE INVESTING

Tim Bennett sums up seven simple tips for making saving and investing tax-efficient in the video below.

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