Tax Efficient Investments

UK Tax-efficient Investments

Various tax efficient investment routes for higher rate taxpayers


⇥Enterprise Investment Scheme (EIS)

⇥Venture Capital Trusts (VCTs)

⇥Social Investment Tax Relief (SITR)

⇥Self-Invested Personal Pensions (SIPPs)

Dive and Go further⇥

 What are tax-efficient investments?

Tax-efficient investments give investors tax relief on investments in qualifying companies or investment vehicles. Many UK government-approved schemes offer investors tax relief. These reliefs range from capital gains tax (CGT) to loss relief and inheritance tax relief.

As with all investments, there are trade-offs when weighing up the pros and cons of each. Two rules to keep in mind when considering these, or any type of investment:

✅First, if it sounds too good to be true, it probably is. We’ll only be looking at government-approved schemes in our review below.

✅Second, the more tax relief on offer, the riskier the investment class is likely to be. We’ll get into this later when we talk about the alternative investments that offer tax relief.

Below we’ll take you through the HMRC-approved tax-efficient vehicles and the various reliefs they offer. While you can’t avoid paying tax entirely, you can reduce the amount you pay while diversifying your portfolio and having a positive impact too.