Income tax, capital gains tax and inheritance tax are important factors in any wealth management strategy. Rates of taxation vary between basic rate at 20% and higher rate at 40%. (Tax year 2008/09).

There are a number of investment strategies to defer or mitigate the various taxes. Traditional arrangements include pension schemes and individual savings accounts. Where appropriate, Enterprise Investment Schemes and Venture Capital Trusts can be considered. Investing offshore is particularly attractive where the underlying assets grow virtually without income tax and without capital gains tax.

Annual exemptions should be utilised wherever possible, for example, the capital gains tax allowance of £9,600.00 (2008 / 09). For 'high street cash deposits' the incorporation of ' Cash ISAS or in the case of an investor being a non or lower tax payer holding Bank or Building Society cash deposit accounts may be considered. For inheritance tax, the inclusion of trusts may be a consideration (see the page on Inheritance Tax for further information).

Bowyer Styles can advise on tax efficient investments whatever your circumstances to find out how contact us.