16:01 20 March 2013
The UK government is committed in encouraging people to start saving and investingfor their future. One of its strategies is to lessen the taxes for investors and savers. Here’s how you can pay less tax on your savings and investments:
• Maximize your ISA (Individual Savings Account) allowance. Every adult in the UK can invest up to £11,280 into ISA for the 2012/2013 tax year. Savers have the option of splitting the amount between cash ISA and stocks & shares ISA.
You can put up to £5,640 into cash ISA and the rest to stocks & shares ISA. However, you do have the option of putting the whole £11,280 into your stocks & shares ISA.
• Pay no capital gains tax. Keep in mind that you do not have to pay capital gains tax each time you sell shares or units held in an ISA.
• Avoid getting taxed on gifts by creating Junior ISAs or children’s Bonus Bonds to your own children.
• Transfer asset and lower down your own taxes. This is possible if your civil partner or your spouse pays lower rate of tax.
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