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11 Cards in this Set
- Front
- Back
Fixed Interest Investments
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Medium/Low Risk
Income taxed at 20% for Basic Rate Taxpayers Spread of risk and growth potential if interest rates fall |
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Pension Contributions
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Tax Relief of 22% on Contributions
25% Tax Free Lump Sum on Retirement. |
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UK Bank and Building Society Accounts
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Capital is low risk with variable interest rates
Tax Deducted at source at basic rate of 20% Cash investment type May be able to reclaim all or part of tax depending upon total income in tax year May be able to request income be paid gross if non tax payer |
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Offshore Bank and Building Society Accounts
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Capital is low risk
Variable Interest rates No tax deducted on interest though fully taxable at lower rate of 10% or savings rate of 20% depending on level of total taxable income. |
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With Profits Investments
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Low/Medium Risk
Potential for Capital Growth Income & Gains within funds taxed at 20% No further tax liability for basic/non tax payers |
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ISA (Cash component)
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Capital is low risk
Variable interest rates Tax Free Income Open to UK Residents over 16 Maximum Investment £3000 per annum |
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National Savings & Investments Certificates
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Guaranteed Return of Capital
Inflation protection over fixed term Tax Free proceeds Maximum investment £15,000 per issue. |
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ISA (Stocks & Shares component)
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Medium Risk Investment
Potential for long term growth but can vary Tax Free Income & Gains Open to UK Residents over 18 Maximum Investment - Maxi ISA (£7000 per annum less amount in Cash component) Mini ISA - £4000 per annum |
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Units Trusts/OEICs
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Spread of risk and potential for growth
Medium risk (equity funds) Subject to Capital Gains Tax Open Ended Investments 10% Tax Credit on Equity based dividends Further 22.5% due for higher rate taxpayers 20% Tax Deducted at source for Fixed interest (Bonds/Gilts) Further 20% due for higher rate taxpayers |
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Investment Trusts
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Lower Annual Charges Than Unit Trust/OEIC
Potential for higher returns than Unit Trust/OEIC Lower Risk than Individual Shares Setup as Companies on London Stock Exchange Closed Ended Investments Can Borrow Funds (Gear) to Invest 10% Tax Credit on Dividends Higher Rate Taxpayers due further 22.5% Subject to Capital Gains Tax |
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National Savings & Investments Income & Pensioners Bonds
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Max Investment - £1 Million
Secure Capital and Income Income could vary on income bonds Paid Gross but subject to 20% tax for basic rate taxpayers |