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Could You Claim a Tax Refund?

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Did you pay a heavy tax bill this year?   Would you like to get some of it back?

Changes in taxation have seen increasing numbers into the higher rate tax brackets. The effective rate  of tax is increased further as other allowances are restricted for higher earners. Reducing tax liability has become more important for more taxpayers.

Tax relief of up to 30% may be recovered on an investment into a Venture Capital Trust. This incentive is to encourage investment in smaller companies that are helping to grow the UK economy. If held for a five year period, dividend income is  tax-free and there is no capital gains tax on a sale of the shares.

The minimum investment is £5,000, maximum £200,000 each tax year.

The investment could be reinvested at the end of the five year period so generating further tax relief.

 

References :

HMRC Income tax rates and allowances

HMRC About Venture Capital Trusts

British Venture Capital Association

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