Basic taxation

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10. Tax efficient but may be very risky

The investments listed below carry the ultimate wealth warning: things can go very wrong, and you could lose the lot.

In the case of EZTs and Lloyd's of London, you can even end up having to pay out in losses more than the original capital investment.

• Enterprise Investment Schemes aim to make a large capital gain from speculative equity investment in a single, small unquoted company. The investment period is a minimum of five years. The maximum investment is £500,000 a year as of 6th April 2008 (previously £400,000 per year). There are substantial income tax and capital gains tax breaks.
• Venture capital trusts aim to make capital gains from a portfolio of speculative equity investments in smaller unquoted companies. Your investment is committed for a minimum period of five years. The maximum investment is £200,000 a year.
• Enterprise Zone Trusts aim to make an equity investment in property, where the purchase cost is subsidised by tax relief. As such this is attractive to high income tax earners only as an income tax shelter - there is no CGT exemption or roll over provision. There is no annual investment limit.

Films and forestry are also tax efficient but again only for the wealthy entrepreneur. In 2008, shipbuilding and coal and steel production were excluded as qualifying activities for EISs and VCTs. Seek expert advice!

1. Your tax breaks courtesy of the government 2. Keep it legal 3. Income tax - first principles 4. Income tax - keeping it in the family 5. Capital gains tax (CGT) 6. How to avoid CGT on your share portfolio 7. Inheritance tax (IHT) planning 8. The most popular tax efficient investments 9. The tax treatment of collective funds 10. Tax efficient but may be very risky 11. Self assessment - who needs it? 12. Self assessment - key dates 13. Do you need an adviser? 14. Conclusion