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Boost Your Returns With Alternative Tax-free Investments

Looking to reduce your tax bill and boost your portfolio returns? We explain the benefits of ISAs and SIPPs - and outline some alternative tax-efficient investments to consider

Emma Wall 10 March, 2017 | 11:45AM

This week as part of our Guide to ISA Investing we reveal the top rated and top performing stock and fund ideas – as well as sharing where the experts stash their cash, the latest news from the 2017 Budget Report and how to reduce your tax bill.

 

 

Emma Wall: Tax efficient investing is not just about reducing your HMRC bill. In fact it's more to do with boosting the gains with your investments, because of course money that you are not giving the tax man is more money in your pocket. Which means that income that gets paid out in dividend or gains or indeed anything that’s reinvested, power of compound interest will boost your investments.

There are several legal ways to reduce your tax bill and boost your investments, SIPs, Self-Invested Personal Pensions and ISAs, Individual Savings Accounts are the most well-known. But there are of course other alternative ways. VCTs, Venture Capital Trusts and EISs, Enterprise Investment Schemes allow you to invest in smaller companies which give you tax breaks.

There are also alternative investments such as farmland and woodland. Commercial forestry is Capital Gains Tax, CGT free and if you hold those holdings for more than two years inheritance tax free too. 

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author Emma Wall

Emma Wall  is Senior Editor for Morningstar.co.uk