Investors face high Capital Gains Tax on profits they make
selling stocks or assets. Tax-free investing ensures lower returns with lower
taxes, but there are ways to profit highly from it.
1.
Cash ISA
Individual savings accounts are free of CGTs in the United
Kingdom along with below £6000 worth of properties. You accumulate interest
rates that are free from tax, allowing you to save up £5000 or more from your
profits. Its high liquidity ensures that you have access to your money any time
you need it.
2.
Stock and Shares ISA
Another form of ISA is an investment ISA account that allow
you to hold stock shares and funds. Like Cash ISAs, you are free from tax.
These include corporate and government bonds. The interest you get from the
bonds will be free of income tax if an ISA holds them.
3.
Self-Select ISA
Self-select ISAs allow you to mix shares, funds and bonds
using an ISA wrapper. However, you might have stockbrokers charge you a fee for
fund trading and share dealing costs. However, be sure that you are a seasoned
investor who knows the trade effectively before proceeding.
4.
Venture Capital Trusts
BCTs allow you to invest in unquoted firms who are only
beginning. Most of these are listed in the Alternative Investment Market. Being
high-risk investments, VCTs could provide income tax relief of 30%on their
investments.
