Beyond Tax: Grow & Protect Your Wealth

Creative, legitimate strategies to shelter and grow your money tax-efficiently. These go beyond payroll deductions — think long-term wealth building.

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ISA Tax Shelter

Invest up to £20,000/year in a Stocks & Shares ISA. All growth, dividends, and interest are tax-free — forever. The earlier you start, the more you save.

Wealth Builder

Unlike a pension, ISA money is accessible any time — no waiting until age 55. At 7% annual return, £20,000/year grows to £276,329 after 10 years or £819,910 after 20 years. Outside an ISA, you'd pay 8.75% dividend tax and 10% CGT on that growth.

Annual Contribution

Expected Return (%)

Maximum ISA allowance is £20,000/year. Historical S&P 500 average: ~10%. UK equities: ~7%. A cautious mix: ~5%.

Tax Saved by Holding in ISA vs. Taxable Account

5 Years

£2,158

Portfolio: £115,015

10 Years

£10,972

Portfolio: £276,329

20 Years

£60,362

Portfolio: £819,910

£20,000/year at 7% return saves an estimated £60,362 in tax over 20 years

Bed & ISA

Gradually move existing investments into your ISA tax wrapper by selling within your CGT allowance and rebuying inside the ISA. A smart annual habit.

Smart Move

Each year you can sell up to £3,000 of gains tax-free using your CGT annual exemption, then immediately rebuy the same investments inside your ISA. Once inside the ISA, all future growth is permanently tax-free. At your 10% CGT rate, that's £300 saved per year. Over 10 years, you'd shelter £30,000 of gains from ever being taxed. This costs nothing except dealing fees — it's just smart housekeeping.

Estimated Saving (ongoing)

£300

Over 10 Years

£3,000

Shelters up to £3,000 of gains/year from 10% CGT — saving £300/year

CGT Harvesting

Use your £3,000 annual CGT exemption every year by selling investments with gains, then rebuying. "Use it or lose it" — the allowance doesn't roll over.

Investors

Every tax year you get a £3,000 CGT exemption (reduced from £6,000 in 2023). If you don't use it, it's gone. The strategy: sell investments with gains up to £3,000, immediately rebuy them (or similar ones after 30 days to avoid the "bed and breakfast" rule). You've now "reset" your cost base to a higher level, permanently reducing future CGT. At your 10% CGT rate, that's £300 saved per year. Couples can do this with £6,000 combined.

Estimated Saving (ongoing)

£300

Over 10 Years

£3,000

Save up to £300/year by crystallising £3,000 of gains annually

Pension Carry Forward

Use unused pension annual allowance from the previous 3 tax years for a larger one-off contribution. Perfect for years with a bonus, inheritance, or windfall.

High Impact

You can carry forward unused pension allowance from the last 3 years. If you haven't used your full £60,000/year allowance, this lets you make a larger one-off contribution with full tax relief at your rate.

Carry Forward Amount

Unused allowance from 2021-22, 2022-23, and 2023-24 (up to £60,000 each year). Check your pension statements for actual unused amounts.

EIS Investment Relief

Invest in qualifying small UK companies and claim 30% income tax relief. Gains are CGT-free after 3 years. Can also defer existing capital gains.

High Earners

Invest £50,000 in EIS-qualifying companies and get £15,000 back from HMRC as income tax relief. If the company succeeds, your gains are completely CGT-free after 3 years. You can also defer existing capital gains by reinvesting them into EIS. Maximum: £1 million/year (£2M for knowledge-intensive companies). Risk warning: these are investments in small, unlisted companies — your capital is at risk.

EIS Investment Amount

Maximum: £1,000,000/year (£2M for knowledge-intensive companies). Must hold shares for 3+ years.

Estimated Tax Saving

£15,000

£50,000 invested → £15,000 income tax back (30% relief)

SEIS Investment Relief

Invest in early-stage startups and claim 50% income tax relief — the highest rate of any UK tax relief. Plus 50% CGT reinvestment relief.

Startup Investors

SEIS offers the most generous tax relief in the UK: 50% income tax relief on investments up to £200,000/year. Invest £25,000 and get £12,500 back. If you reinvest a capital gain into SEIS, you also get 50% CGT relief on that gain. Gains on SEIS shares held 3+ years are CGT-free. Risk warning: seed-stage companies are high-risk — many fail entirely.

SEIS Investment Amount

Maximum: £200,000/year. Must hold shares for 3+ years. Highest risk but highest relief.

Estimated Tax Saving

£12,500

£25,000 invested → £12,500 income tax back (50% relief)

Landlord Tax Optimisation

Maximise allowable property expenses — letting fees, repairs, insurance, ground rent, travel — to reduce taxable rental profit. Mortgage interest gets a 20% tax credit (Section 24).

Landlords

Individual landlords can deduct a wide range of expenses from rental income: letting agent fees, repairs & maintenance, insurance, ground rent, service charges, council tax (if paid by you), utility bills, legal fees, travel costs, advertising, and replacement of domestic items. Mortgage interest is handled separately — you get a 20% tax credit under Section 24 (not a deduction), which costs higher-rate taxpayers more.

Spousal Income Splitting

Transfer income-producing assets to your lower-earning spouse or civil partner. Uses two sets of tax-free allowances and lower tax bands.

Couples

If you're married or in a civil partnership, you could transfer income-producing assets to your spouse to use their lower tax bands and allowances. This is one of the most effective legal strategies for couples where one earns significantly more than the other.

Important: These are general illustrations for educational purposes only, not financial advice. ISA and pension projections assume consistent annual returns which are not guaranteed. EIS and SEIS investments are in small, unlisted companies and carry significant risk including total loss of capital. Past performance does not guarantee future results. Tax rules may change. Always consult a qualified financial adviser before making investment decisions.