Tax Bill: Finance Manager Explains How To “Legitimately Avoid Taxes” – Lower Taxes | Personal finance | Finances
From inheritance to investment portfolios, there are many different ways in which a lot of money can be made, but many don’t know how to use that income to their full advantage. Ian Lowes, MD of Lowes Financial Management shared his top tips for making money.
The shorter an investment period, the higher the risk to your investment, but risky investments that are spread over the long term can reduce the overall risk to which one is exposed.
When investing, don’t forget about structured products
Structured products are ready-made and structured financial investment strategies based on either a single security or a basket
These can be bespoke packages and some offer some form of capital protection while others do not thoroughly research all of the options available in advance.
DO NOT MISS:
“Cniche by some only because they’re not mainstream, but those who do know know they’re certainly worth a look.
“Perhaps one of the ‘best kept secrets in investing,’ structured autocall products related to the FTSE 100 have an exceptional track record, have easy-to-understand results, and typically offer around seven percent per year.”
Avoid taxes! Legit!
“Your money will go a lot further if you don’t give a lot to the tax officer,” he commented.
“Do this by choosing investments where profits are subject to capital gains tax rather than income tax.
“We all have an annual capital gains tax exemption (£ 12,300 in the current tax year) and only if all profits in any tax year exceed that amount is capital gains tax payable – which is currently half the income tax rate.
“Take advantage of ISA allowances – even if you don’t pay taxes, your money should be better protected than not. Save with pension subsidies and receive tax breaks and tax-privileged declarations. “
Don’t pay 40 percent inheritance tax
“If you are fortunate enough to have an estate subject to inheritance tax or to inherit an heir, the tax rate due can be reduced from 40 to 36 percent with simple changes.
“While this includes donating part of your inheritance to charity, by redirecting 10 percent of the taxable portion of the estate to charities, charities can benefit up to ten times for every pound you / the beneficiaries give up.
“Plus, you don’t have to choose a charity right away – use a Charites Aid Foundation account and effectively have a checkbook to distribute the money to charities at a later date,” concluded Lowes.