Tax-efficient investment options
ISAs (Individual Savings Accounts)
ISAs allow UK residents to invest up to a set annual allowance each tax year, with any capital gains or income generated within the ISA generally free from UK tax. Stocks and Shares ISAs are commonly used for long-term investing and can hold a range of assets.
Did you know: IG offers a Stocks and Shares ISA that allows eligible investors to hold investments within a tax-efficient wrapper, subject to annual limits and account terms.
SIPPs (Self-Invested Personal Pensions)
A Self-Invested Personal Pension (SIPP) is a pension wrapper that allows individuals to choose and manage their own investments. Contributions may benefit from tax relief, subject to personal circumstances and current rules, and investments held within the pension can generally grow free from UK income and capital gains tax.
Funds in a SIPP are typically inaccessible until the minimum pension age, making SIPPs more suitable for long-term retirement planning.
Open a SIPP account with IG here.
Enterprise Investment Scheme (EIS)
The Enterprise Investment Scheme is a UK government initiative designed to encourage investment in early-stage companies. It offers a range of tax reliefs, but these investments are usually higher-risk, less liquid, and subject to strict eligibility criteria.
EIS investments are not suitable for all investors and require careful consideration of both the risks involved and the conditions attached to the tax reliefs.
