What are venture capital trusts (VCTs) and how to use them safely

Venture capital trusts (VCTs) offer an opportunity to invest in smaller UK companies while benefiting from attractive tax reliefs. As an investor, you can receive income tax relief of up to 30 per cent on your investment, tax-free dividends, and no Capital Gains Tax when you sell your VCT shares. However, these benefits come with…

How to structure pension drawdowns to optimise tax efficiency

When it comes to taking money from your pension, careful planning is essential to minimise your tax liability and maximise the longevity of your savings. Here is how we recommend you structure your pension drawdowns effectively. Use your tax-free lump sum wisely You can withdraw up to 25 per cent of your pension as a…

What is the core-satellite strategy, and should you use it?

When it comes to managing your investments, you may have come across various strategies that aim to balance risk and reward. One such method that is gaining popularity among both seasoned and novice investors is the core-satellite strategy. This approach offers a way to create a diversified portfolio while still allowing room for higher-risk opportunities….

Turning 18? Ready to take control of your ISA?

A Junior Individual Savings Account (JISA) is a tax-efficient savings or investment account opened by a parent or guardian for a child under the age of 18. These accounts allow savings to grow free from Income Tax and Capital Gains Tax and can be a great way of developing a cushion for future expenses. You…

The pros and cons of popular asset allocation strategies

An asset allocation strategy involves deciding how to distribute investments across asset classes like equities, bonds, and cash. Your choice of strategy significantly impacts potential returns and risks. Strategic asset allocation Strategic asset allocation involves setting a target allocation for each asset class based on financial goals and risk tolerance, with periodic rebalancing to maintain…