New tax year to-do list
There are three things that could help experienced investors save tax right at the beginning of the new tax year.
Wealth Club is the only service that allows you to apply for all these offers online. Please note tax rules can change and benefits depend on circumstances.
1. Invest in a VCT – save up to 30% income tax and get tax-free dividends
The official numbers are not out yet, but we estimate at least £650 million has been invested in VCTs in the 2018/19 tax year. Two of our featured offers are using their over-allotment facility to take applications for the 2019/20 tax year.
The sooner in the tax year you invest in a VCT, the sooner you can start benefitting from any dividends it may pay. Although please remember dividends are not guaranteed.
In addition, if you invest at the start of the tax year, you could ask HMRC to change your tax code. So, instead of having to claim the tax relief after paying the tax, you could have your income tax reduced each month until your tax relief is used up.
Octopus Titan VCT
Save 2.5% (3.5% for existing shareholders) on the initial charge, plus 0.25% annual rebate for three years.
Save 1% on the initial charge, plus 0.15% annual rebate for three years.
Save 3% on the initial charge, plus 0.10% annual rebate for three years.
2. Invest in EIS allotting early in the tax year
When you invest, you can choose to offset the EIS tax relief against 2018/19 (using carry back) or 2019/20 income.
Several of our featured EIS offers plan to allot shares around the end of April 2019 – you can apply online for all of them:
Azoomee has created an online platform for children so they can experience the benefits and fun of the internet without the risk of inappropriate content. Single company private offer with no diversification – capital is at risk.
Deepbridge Technology Growth EIS
Deepbridge Technology Growth EIS is an established fund aiming to invest in later-stage technology companies that own significant intellectual property, e.g. a patented process or product.
Q-Bot has developed Europe’s only accredited robotics system that insulates floors quickly, cost effectively and without disruption. Single company private offer with no diversification – capital is at risk.
The Cook & The Thief EIS
From the co-founder of Mr & Mrs Smith – The Cook & The Thief aims to be like Deliveroo, but for high-end food from top restaurants, including those with Michelin stars. Single company private offer with no diversification – capital is at risk.
Unibio has developed a patented process to convert natural gas into protein for the $500 billion animal feed market. Co-invest with institutions and corporates. Single company private offer with no diversification – capital is at risk.
3. Invest in an early bird AIM ISA and make the new tax year’s subscription IHT free
ISAs are not normally IHT free. However, when you invest in an AIM ISA, your money could potentially be IHT free after two years, in addition to the usual ISA benefits of tax-free income and growth.
Wealth Club aims to make it easier for experienced investors to find information on – and apply for – tax-efficient investments. You should base your investment decision on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.