Investments that don't pay an income

Chris4817

Hi,

I have some buy to let property and some savings. Whilst having a discussion with my accountant yesterday he told me that to avoid moving into the higher rate taxpayer band I should consider putting my savings into an investment where it pays capital and not an income(?)

He couldn't recommend any as he said I needed to see a financial advisor but I am sure there will be someone who can help me on here, and also to explain how it works!

Thanks in anticipation.

montycat_2

I have a Norwich Union policy which is a 5 year plan .I don't draw an income on it but I can access it and withdraw a percentage of the initial balance every year if I want .
This is what I have done .
You might be best to see a financial advisor .

dunstonh

ISAs
Low yield Unit trusts/OEICs. (could be some income but amounts could be very small)
Investment bonds (can use high yield funds in these if you want. They do not produce income as far as tax man is concerned).

Chadsman

'Zeros' return a set amount of capital after a set amount of time without paying any income in the mean time.

Paul_Varjak

What about putting some of your income into a pension? You get tax relief on your contributions.