Morningstar's Guide to Paying Less Tax

Have you topped up your ISA? Used your pension allowance? Read on for your guide to legitimately minimising your tax bill and maximising your investment portfolio

Emma Wall 10 March, 2014 | 7:30AM
Facebook Twitter LinkedIn

Investors – you have less than a month to get your financial house in order. April 5 is the end of the 2013/14 tax year, and signals the end to this year’s use it or lose it tax allowances.

Have you topped up your ISA? Used your pension allowance? Maximised your inheritance tax exemptions? If you answered no to any of the above you could be missing out on thousands of pounds of extra income, growth and profit. In fact, according to financial adviser aggregator site Britons will waste £4.7 billion in unnecessary tax this year.

It’s been 15 years since ISAs were introduced, and if you had maximised your investable allowance each year you could be sitting on a tax-free pot of more than £120,000 – and that’s before any growth. If you had cleverly allocated your cash you could have tripled the value of your portfolio.

This week brings you the A to Z of legitimately minimising your tax bill and maximising your investment portfolio.

Remember – you’ve only 25 days to go, so get cracking!

Monday: The Basics

New to investing? Or need a re-cap? We explain how to get started

Fund Basics
A guide to fund investing for beginners and those who need a re-cap

Funds vs. Investment Trusts
Investors should consider all the tools at their disposal when building up a tax-efficient portfolio

What is an ETF?
What are exchange traded funds? And when should investors use them?

The Importance of Diversification
Fixed income has fared better this year proving the need for both bonds and equities

What Does Financial Jargon Mean?
Read our guide that explains the most commonly used investing terms

What are Performance Fees?
There is nearly £12 billion in unit trusts that carry a performance fee in the UK

5 Top Performing Investment Trusts
It has been five years since the FTSE 100 bottomed out, which investment trusts have thrived in the interim

5 Best Performing Funds
Which funds have performed best since the credit crisis?

Tuesday: ISAs and JISAs

Which are the best paying cash ISAs? Where should you invest your tax-free allowance this year?

Introduction to ISAs
Read our beginners guide to find out how to make the most of your allowance

ISA Investment Ideas
We ask a selection of advisers where and how you should invest

What is a Junior ISA?
We explain how and where to invest your child's Junior ISA

8 Best Fixed Rate Cash ISAs
The top-paying savings accounts are those that lock your money away

5 Best Variable Rate ISAs
Need access to your cash but want to save tax efficiently?

Government Allows CTF Transfer to Junior ISA
Six million children with child trust funds will now be able to transfer to JISAs

How to Make the Most of Your Cash ISA
What can savers do to get the most from their cash?

Wednesday: Tax Planning

Learn how to drop an income tax band, minimise your IHT liability and invest in assets free from capital gains tax

Britons Overpay £5bn Tax
Households could ahve legally reduced their tax bill but missed out on allowances

Investments Free from CGT
Capital gains tax is due on most investments unless you invest in a chattel

How to Pay Less Income Tax
Avoid higher tax bands and get back your Child Benefit

Reduce Your IHT Bill
Even those how believe they have moderate wealth may still need to act

Thursday: SIPPs and Workplace Pensions

Long term investing made easy – we explain auto-enrolment and how to build up a personal pension

3 Investment Trusts for Your SIPP
Looking for good quality investments for your personal pension?

3 Open-end Funds for Your Pension
Pension investors should consider these top rated funds

Protect Your Pension from Tax
Savers with large pensions may find themselves facing a 55% tax bill

Are Emerging Markets Cheap?
Investing for your pension means taking a long term view

What is Auto-enrolment?
You could have a pension and not even realise it

Investing for the Long Term
Consider the risks versus the rewards when investing for more than a year

An Introduction to Pensions
A beginners guide to retirement savings

Friday: Getting Help

Don’t want to tackle taxes on your own? Here are some extra tips

Rodney Hobson's ISA Stocks
Hobson says there are plenty of decent investment choices on the stock exchange

What is a Workplace ISA?
Make the most of your tax efficient investment opportunities

What is a VCT?
How you can use venture capital trusts to reduce your tax liability

Why and How to Find a Financial Adviser
A good financial adviser can earn their keep many times over

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.

Facebook Twitter LinkedIn

About Author

Emma Wall  is former Senior International Editor for Morningstar

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures