Anchor Wealth – investments
Make your investment portfolio work for you with a call to Anchor Wealth.
Whether you are looking to start a new investment plan, or would like some advice on an existing portfolio of funds, through our advice management, we look to ensure your portfolio is best placed to meet your goals.
We can offer advice on ISA’s, General Investment Accounts, Onshore and Offshore Investment Bonds as well as Venture Capital Trusts and Enterprise Investment Schemes.
Anchor Wealth – invest today for a more prosperous tomorrow
ISA’s
ISA stands for Individual Savings Account. It works like a normal savings account, however, you don’t pay any interest on cash, neither do you pay income or capital gains tax from investments.
Each year every UK individual has an allowance of £20,000.
General Investment Account
A GIA stands for General Investment Account and is an account that allows you to hold investments outside of tax wrappers such as ISAs and pensions.
Unlike ISAs, there is no limit on how much you can invest in a GIA. They are therefore ideal for those who have used up their ISA allowance and who have more to invest.
Onshore and Offshore Bonds
UK Investment Bonds are non-income producing investments and so have different tax treatment from other UK based investments. They can provide valuable planning opportunities for individuals. The underlying investments within the bond are subject to UK life fund taxation meaning that you are treated as having paid income at the basic rate on the amount of your gain.
You can withdraw up to 5% each year of the amount you paid into the bond without paying any immediate tax on it.
An Offshore Investment Bond is similar to an Onshore Investment Bond, however it is taxed slightly differently.
With an onshore bond, tax is payable on gains made (and investment income received) from the underlying investments of the life funds invested in, whereas with an offshore bond, no income or capital gains tax is payable on the underlying life fund investments.
Venture Capital Trusts & Enterprise Investment Schemes
Venture Capital Trusts (VCTs) and Enterprise Investment Schemes (EIS’s) offer tax relief to individuals to encourage them to invest in companies that are not listed on any recognised stock exchange.
Depending on the scheme and subject to meeting certain requirements, you can benefit from income tax relief and / or capital gains tax relief.
Please be advised that it is likely to be appropriate for retail investors as a small part of a diversified portfolio and they have characteristics which represent a higher risk to retail investors and should only be accessed when those investors understand the risks involved. We therefore recommend you seek professional advice before investing in these products.
