Tax-efficient investing

Your circumstances will change, tax rules and allowances will alter and your investment portfolio will have expanded across multiple pension pots, savings and investment vehicles.

With the help of an Amber River financial planner, you can maintain clarity, control and direction over your money, from day one and over time.

There are a number of ways to invest tax-efficiently. Two of the most common tax-efficient wrappers are pensions and Individual Savings Accounts (ISAs).

Pensions generally enable your money to grow tax-free. You also receive ‘tax relief’ in the form of a government top-up, in addition to your own contributions (which are limited to £60,000 per year).

Pensions were also considered to be a tax-efficient way of passing on your wealth. However, changes announced in the October 2024 Budget mean that unused pension funds will be subject to Inheritance Tax (IHT) from April 2027.

ISAs are tax-efficient because any growth on your ISA investment won’t be subject to tax – although you are limited to investing a maximum of £20,000 per tax year.

If you’re willing and able to take more risk with your money, you could also consider Venture Capital Trusts (VCTs), the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS).

All three are government-backed and aim to help smaller companies find investment in return for generous tax benefits to investors. However, they will only be appropriate for certain types of investors who are willing and able to risk the total loss of their investment, in return for the tax advantages they offer.

Over time, a tax-efficient investment strategy, combined with ongoing reviews, can make a significant difference to your life. That said, the value of investments – including pensions – can fall as well as rise, and you may not get back the full amount you invest, so it’s essential to seek professional financial advice before making any investment decisions.

Together, we’ll devise an approach that makes more of your money in your given timeframes, without exposing it to risks you’re uncomfortable with, or can’t afford to take.

Tax-efficient investing is more than just smart financial planning – it’s a way to make sure your wealth could benefit future generations. If you’re looking to make the most of your money while minimising tax liabilities, discover practical ways to make tax-efficient investments, from ISAs and pensions to venture capital schemes. Understanding the options available is essential whether you’re building a retirement nest egg or preserving your legacy.

Learn more about how these strategies fit into the broader context of long-term financial planning, and consider pairing them with guidance on inheritance planning or preparing for a 100-year life, both key aspects of maximising your financial wellbeing.

As interest rates shift and savings balances grow, more people are finding themselves subject to taxes on their savings interest. Many savers remain unaware of how personal savings allowances work or how to manage their savings to avoid unnecessary tax liabilities.

By understanding the rules and making strategic use of allowances like ISAs, personal allowances, and the Personal Savings Allowance, you can optimise your savings and keep more of what you earn. Learn when savings become taxable and find out about practical strategies to maximise tax efficiency, helping you make the most of your financial opportunities.

Capital Gains Tax (CGT) is an important consideration for anyone selling assets that have increased in value.

Find out about the basics, when it applies, and practical steps you can take to minimise your CGT liability. By understanding how CGT works and the allowances available to you, can help you keep more of any profit you make from selling something of value.

Capital Gains Tax (CGT) can take a significant bite out of the profits from selling valuable assets, but for couples, there are strategies to help reduce the impact. By leveraging your individual tax-free allowances, you can minimise your CGT liability and keep more of your hard-earned wealth.

Explore the practical steps couples should take to reduce CGT, such as transferring assets between partners and staggering sales, to optimise their tax planning. With careful preparation, you and your partner can navigate CGT more efficiently and maximise the value of your assets.

Making the most of your tax allowances is a fundamental part of financial planning. With a number of allowances available – from ISAs to pensions and gifting – there are plenty of ways to reduce your tax liability and ensure your money is working as hard as possible.

Discover key strategies for optimising your finances, whether you’re nearing the end of the tax year or planning ahead for the future. From topping up your ISA, to leveraging your gifting and pension allowances, discover actionable steps to maximise your tax efficiency and secure your financial goals.