Ndubuisi Egwim covers tax-efficient investing strategies. The CGT allowance dropped from £12,300 to £3,000, while ISAs and SIPPs can shield gains. For inheritance tax, the individual threshold is £325,000 (£600,000 for couples) with a 40% rate, but gifting, trusts, and life insurance in trust can reduce what you owe.
£12,300
£3,000
£325,000
£600,000
40%
Number six, ignoring capital gains and dividend taxes. Now you might not know this, but whenever you buy and sell an asset like a stock crypto, even houses, and you make a profit, you owe the government money. It's called capital gains tax and it's quite sizable. However, there's a CGT allowance which if you make any gains below that amount, there's no tax deal. Unsurprisingly and a bit painful, the CGT allowance has continued to be reduced by the government over the last few days. In fact, over the last few years, in fact it's dropped from £12,300 in 2022 tax year to £3,000 now. So one way to fix that, use your ISAs. Use your SIP to sort of like do tax efficient investments. So there's no tax on investment done in the isa. Number seven, not planning for inheritance tax. If your estate is worth over 325 000, that's 600k for couples, your family could lose 40% to inheritance tax. You can fix it now. Can use gifting allowances and put assets in a trust like something like your life insurance. Can put in a trust to ensure that payouts are not taxed and even constructing like spousal exemptions and of course pension planning. Speak to a competent advisor if you need help in this.
