How to make your investments more tax efficient
Insights

How to make your investments more tax efficient

Make your money work harder for you

You want to make your money work as hard as possible. If you have to pay tax on the returns earned on your investment this obviously reduces your gains, so it makes sense to take advantages of the tax-free allowances available to you. At Columbia Threadneedle, we have a range of dedicated products that can help to maximise the tax efficiency of your portfolio. However, tax rules can change and everyone’s tax benefits are unique to their different circumstances.

As a result, we always recommend that you consult a professional financial adviser first. Nevertheless, there are many ways to ‘wrap’ your investments that will make them easier to manage and more efficient from a tax perspective. 

Getting started

An ISA is one of the easiest ways to reduce the tax you pay on your investment portfolio. Any capital gains made within your ISA are free of capital gains tax and income tax so you can get to keep ALL your profits where generated. The ISA allowance for the 2021/22 tax year is £20,000. Using your full allowance each tax year will reduce the overall tax you pay on your portfolio. Children also have tax-free allowances, a Junior ISA allows you to save in a tax-efficient manner for your child, up to £9,000 for the current tax year.

Another tax-efficient way to invest is by using your money for pension planning purposes. Whichever you choose, at Columbia Threadneedle we have a range of options available that are not only tax efficient but aim to provide the potential for growth, income or a combination of both.

Please note that the value of investments and any income from them is not guaranteed, and you may get back less than you invested. 

Discover our ten Investment Trusts

Our 10 investment trusts provide a range of strategies with the option of capital growth, income or a combination of both and with a specific regional focus or with a global remit. To view our investment trusts click here.

Let’s talk about risk

The value of your investments can go down as well as up, and you may not get back what you originally invested.

This section of the website is directed at persons who are located in the UK. Please read our full terms and conditions and the relevant Key Information Documents (“KID”) before proceeding with any investment product referred to on this website. Nothing on this website is, or is intended to be, advice to buy or sell any investments. If you are at all unsure whether an investment product will meet your individual needs, please seek advice.

13 July 2018
Share article
Share on linkedin
Share on email
Key topics
Related topics
Listen on Stitcher badge
Share article
Share on linkedin
Share on email
Key topics
Related topics

PDF

How to make your investments more tax efficient

Important Information

Important information: Past performance is not a guide to future performance. Your capital is at risk. The value of investments and any income is not guaranteed and can go down as well as up and may be affected by exchange rate fluctuations. This means that an investor may not get back the amount invested. This document is not investment, legal, tax, or accounting advice. Investors should consult with their own professional advisors for advice on any investment, legal, tax, or accounting issues relating to an investment with Columbia Threadneedle Investments. The mention of any specific shares or bonds should not be taken as a recommendation to deal. Columbia Threadneedle Investments does not give any investment advice. If you are in doubt about the suitability of any investment, you should speak to your financial adviser. The analysis included in this document has been produced by Columbia Threadneedle Investments for its own investment management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice and should not be seen as investment advice. This document includes forward looking statements, including projections of future economic and financial conditions. None of Columbia Threadneedle Investments, its directors, officers or employees make any representation, warranty, guaranty, or other assurance that any of these forward-looking statements will prove to be accurate. Information obtained from external sources is believed to be reliable, but its accuracy or completeness cannot be guaranteed. Issued by Threadneedle Asset Management Limited. Registered in England and Wales, Registered No. 573204, Cannon Place, 78 Cannon Street, London EC4N 6AG, United Kingdom. Authorised and regulated in the UK by the Financial Conduct Authority. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

Related Insights

No data was found
17 May 2024

Tochi Nwozuzu

Content Marketing Executive

Market Monitor – 17 May 2024

Global stock markets extended their May gains this week, with a welcome slowdown in inflation in the United States laying the groundwork for interest rate cuts.
Read time - 3 min
10 May 2024

Tochi Nwozuzu

Content Marketing Executive

Market Monitor – 10 May 2024

Global stock markets made solid gains this week as the likelihood of imminent interest rate cuts increased while geopolitical tensions eased.
Read time - 3 min
3 May 2024

Tochi Nwozuzu

Content Marketing Executive

Market Monitor – 3 May 2024

Global stock markets had a challenging week due to continued uncertainty around the timing of interest rate cuts in the United States, as well as mixed corporate earnings figures.
Read time - 3 min
true
true

Important Information

Important information: Past performance is not a guide to future performance. Your capital is at risk. The value of investments and any income is not guaranteed and can go down as well as up and may be affected by exchange rate fluctuations. This means that an investor may not get back the amount invested. This document is not investment, legal, tax, or accounting advice. Investors should consult with their own professional advisors for advice on any investment, legal, tax, or accounting issues relating to an investment with Columbia Threadneedle Investments. The mention of any specific shares or bonds should not be taken as a recommendation to deal. Columbia Threadneedle Investments does not give any investment advice. If you are in doubt about the suitability of any investment, you should speak to your financial adviser. The analysis included in this document has been produced by Columbia Threadneedle Investments for its own investment management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice and should not be seen as investment advice. This document includes forward looking statements, including projections of future economic and financial conditions. None of Columbia Threadneedle Investments, its directors, officers or employees make any representation, warranty, guaranty, or other assurance that any of these forward-looking statements will prove to be accurate. Information obtained from external sources is believed to be reliable, but its accuracy or completeness cannot be guaranteed. Issued by Threadneedle Asset Management Limited. Registered in England and Wales, Registered No. 573204, Cannon Place, 78 Cannon Street, London EC4N 6AG, United Kingdom. Authorised and regulated in the UK by the Financial Conduct Authority. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

You may also like

Investment approach

Teamwork defines us and is fundamental to our investment approach, which is structured to facilitate the generation, assessment and implementation of good, strong investment ideas for our portfolios.

Find your fund

Columbia Threadneedle Investments has a comprehensive range of investment funds catering for a broad range of objectives.

Types of investment

We offer a broad range of actively managed investment strategies and solutions covering global, regional and domestic markets and asset classes.