There are a number of options available to make  tax efficient investments, from the very popular ISAs to EISs. These are described briefly below.

• Contributions to pension funds/schemes are effectively made net of basic rate tax, the contributions are grossed by virtue of the pension scheme claiming the effective tax deducted.
• Higher rate/ additional rate taxpayers benefit by being able to utilise the contributions against the top tier of their income, normally as part of their Self assessment tax Return.
• An annual limit for qualyifing contributions of £40,000 applies (including those contributions made by an employer).
• It may be possible to utilise any relief not used in the previous three years, subject to certain conditions and relevant contribution periods.
• The £40,000 limit when applied to defined benefit/ final salary schemes is measured against the benefits value and not the contributions made.

• Each year you can invest in an ISA upto the annual limits. You do not get tax relief on the sums invested but any income or gains that arise are not subject to tax. You cannot claim for any tax credits that arise on dividend income. The value of any ISAs are subject to Inheritance Tax as part of an individual's estate on death.
• Annual Limits 2014/15 from 01/07/14 - Annual limit for each individual £15,000 (cash ISA limit £5,840).
• Junior ISA limit 2014/15 from 01/07/14for each individual £4,000 (cash ISA limit £3,840)

Want to know more about us? Then please visit About Our Company.

The object of the following three schemes is to provide venture capital for small businesses and for growing business. As you would expect there is considerably more risk involved than with ISAs, hence the potential for higher rates of return and improved tax allowances.

• VCT investments, as the name suggests, are made through trust fund thereby spreading the risk across the fund's investments. You invest up to £200,000 in any one year and tax relief arising is 30% of the sum invested.
• If you hold the investment for 5 or mor years then there is no capital gains tax liability, additionally dividends are not liable for higher rate tax.
• Tax credits arising on dividends cannot be reclaimed.

• The annual qualifying investment limit for EISs is £1,000,000 and investments can be rolled back into the previous tax year up to the value of any unused portion of the respective limit.
• Capital gains on EIS shares are exempt from tax provided the stipulated conditions have been met for 3 years and the shares have been held for 3 years.
• The disposal of other EIS assets gives rise to a gain but the tax can be defeered if the proceeds are reinvested in EIS shares. No limit applies to the amount of gain to be reinvested, when the EIS shares are sold the tax liability on the original gain becomes due.

• SEIS is new and intended to provide investment/finance for new start up companies. There is obviously a higher degreee of risk involved and therefore they attract tax relief at 50% up to a limit of £100,000 of investment per year.  Again capital gains can be deferred bringing the possible relief available up to 78% for some investors, you will need to study the terms and conditions very carefully to ensure the scheme is suitable for you.

We also provide some useful Business & Tax Links, please take a look or if you are a CIS Subcontractor please consult our home page or help & hints page.

Touch options trading allow traders to execute transactions based on predefined price levels for a specific asset.

Office Hours:

Monday - Friday 08:00 - 21:00

Saturday 10:00 - 14:00

If you have any queries please contact us:

Tel:  0113 418 2058

Mob: 0779 4734711 (text Name & Address followed by "CISPACK" or "SATPACK") & we will send you a CIS Tax Return or Self Assessment pack.

Email: enquiries@cismadeeasy.co.uk

Alternatively, please use our contact form.

Use of this website is subject to & governed by our terms & conditions of use and privacy policy.