mbic

mbic

Hi All.I have a lump sum of approx.£30,000 to invest. What would the best tax efficient way of doing this please? I would prefer ''low risk ,low return''.

dunstonh

It depends on your tax circumstances as to what would be the absolute answer. Usually, the first place to start is ISA. After that it would depend on whether you are a basic rate tax payer, non tax payer or higher rate taxpayer and what you would likely be when you need to withdraw the bulk of the funds, as to which route could be better.

mbic

Thanks,
I am a basic rate tax payer, and intend leaving this sum of money untouched.

dunstonh

If investment with some capital risk is likely, then Unit Trusts or OEICs would follow next in tax efficiency. However, an investment bond may have lower charges which can offset the tax difference plus more. That would really depend on where you are investing (as in investment sectors/funds) and whom you are investing with (different charges with different providers) and whom is placing the investment (how much commission they take will futher influence charges - sometimes no different, sometimes a lot more, sometimes a lot less. Yes its possible to have commission paid to an advisor and end up with lower charges than if you went direct).