Why pay tax needlessly, when you can use tax efficient savings
Tax efficient savings are those which avoid income tax on interest paid. The taxman applies income tax to growth on your savings before your interest is paid to you – as a result of which, many people are unaware of the tax-free option and the money they can save by tax efficient saving.
Whether saving for a rainy day, to build up a nest egg for yourself or your children, or saving in the longer term for your retirement, there are a range of tax efficient savings accounts that will save money for you. At Principle First, our experts research the whole market and can explain all your options for tax efficient saving.
Contact our savings team to find out more about tax efficient savings. Make an online savings enquiry or ring 0800 678 5929 now.
The most popular tax efficient savings accounts are Individual Savings Accounts or ISAs.
Tax efficient savings in cash ISAs
A cash ISA allows you to save up to £5,640 per year (in 2012/13) with no tax to pay on the interest. Considering that savings interest for a basic rate taxpayer is normally taxed at 20%, the cash ISA is a great tax efficient savings account.
Tax efficient savings in stocks and shares ISAs
Stocks and shares ISAs are tax efficient accounts where you can save up to your full annual ISA allowance of £11,280 (less the amount you may have already saved into a cash ISA). The stocks and shares ISA is recommended as a longer term savings option, as stock market investments tend to outperform cash over time, but can be quite volatile in the short term.
There are many other tax efficient savings options including pensions, VCTs and EIS schemes, and bonds. Each of these requires your cash to be locked away for a certain term, in return for the tax advantage you receive.
Our team at Principle First can give quality independent financial advice on the most suitable tax efficient savings options for you
Ask our savings experts about tax efficient savings. Make an online savings enquiry or ring 0800 678 5929 now.
