Tax and your investments

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29. Conclusion

The tax rules relating to investments are not simple, but neither are they complex. In general, your goal should be to understand enough about them to manage your investments in a tax efficient manner.

The important points are:

1. Make use of tax free wrappers, especially ISAs.
2. If you are married, arrange ownership of assets between you and your spouse so that income and capital gains end up on the right tax return - that is whichever one of you is going to pay least tax on them.
3. When selling shares, consider what indexation and taper relief is available, what net gain you will make, and how the gain will affect your overall CGT position for the year. Consider these factors before you make the sales, not after them!
4. Don't let tax considerations become the overriding factor in your investment decision-making
5. If your financial position is at all complicated, take professional advice.

You have now completed the course. To test your knowledge, take the Assessment test.

1. Keeping it legal 2. How HMRC treats your investment income 3. Keeping records 4. The basis of dividend income 5. Dividend income 6. Interest income 7. Interest on Treasury Stock 8. Capital gains tax basics 9. Base cost 10. Indexation 11. Taper relief 12. Indexation and taper relief - together! 13. Date of acquisition 14. Disposal proceeds 15. Disposal of a holding with a history 16. Takeovers 17. Bonus/scrip issues 18. Share splits 19. Buybacks 20. Rights issues 21. Share options 22. Beneficiaries and minors 23. Calculating your CGT liability 24. Using your annual CGT exemption 25. Transfers between spouses 26. ISAs 27. Delaying capital gains 28. Other tips to reduce CGT liability 29. Conclusion