Tax hub
Expert tips for tax-efficient investing.
Our experts share their top tips for making the most of your money.
> Take stock of your finances
> Make the most of your tax allowances
Important information - This page aims to provide you with a summary of the different investment options, tools, apps and services available to ii customers. The investments referred to may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. Please remember, the value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. Tax treatment depends on your individual circumstances and may be subject to change in the future.
As the UK tax burden soars to its highest level in 70 years, finding ways to protect your wealth from HMRC's grasp has never been more important. Simply put, if you pay less tax, you get to keep more of your investment growth and income.
ii offers three tax wrappers - a Stocks and Shares ISA, a Junior ISA, and a Self-Invested Personal Pension - each with their own set of benefits, allowing investors to choose the most suitable investment solutions for their circumstances. We also offer a Trading Account, which although isn't a tax wrapper, can still lower you tax bill if used effectively.
Below you will find our own experts' top tips for managing your investments ahead of tax year end and beyond.
Take stock of your finances.
ii expert tip #1.
Review your pensions and investments.
Make a list of your old pensions and investment accounts and find out what you’re paying in fees - it may surprise you. It’s not just about investments - money sitting in interest-bearing savings accounts could be losing value under the weight of inflation. Could that money be working harder in an ii SIPP or ISA?
ii expert tip #2.
Save when you bring your investments together.
With ii, you can have all your investments under one roof for a low, flat monthly fee. What’s more, having all your accounts together in one place can save you time and money when it comes to managing your investments. Don't pay more than you have to.
ii expert tip #4.
Keep calm and pay less tax on gains.
The capital gains tax (CGT) annual exemption halved to £3,000 in April 2024 while the basic and higher rates of CGT were hiked to 18% and 24%, respectively, in October. This means use of tax wrappers such as pensions and ISAs is even more important. Make sure you understand how these changes affect both you and your investment plan.
ii expert tip #5.
Broaden your investment horizons.
Investing internationally means you can access household names like Apple, Microsoft and Tesla, as well as lesser-known growth stocks not available on UK markets. ii's multi-award-winning international service gives you access to more investments than any other provider in the market.
ii expert tip #6.
Take control of your tax bill with income drawdown.
The beauty of income drawdown is that you can take money out of your pension as and when you like. This flexbility is not only a great way to tailor withdrawals to your income needs, but can also help to control your tax bill. Also think carefully about how to draw any tax-free entitlement. You can either take the lot in one go or stage withdrawals, whatever works best for your retirement goals and potential tax liabilities.
ii expert tip #7.
Engage with your investments.
You may have heard that knowledge is power, and at ii we have a growing catalogue of expert tips, news and insights to help you invest smarter. Our daily insights and ideas take the form of articles, videos and podcasts – so you can stay up to date while on the go, or in the comfort of your home.
ii expert tip #8.
Connect with like-minded investors.
Remember, you don't always have to fly solo. ii Community is free to join and gives you the chance to be part of an active, supportive community. With public and private groups, you can link up with like-minded people and have real-time conversations about strategies, best performers, and new finds.
ii expert tip #9.
Turn to money market funds for a short-term home.
At some point or another, you may want take a belt and braces approach with some of your wealth to offer protection from stock market fluctuations. If a short-term, low-risk home is what you need, money market funds can provide a fitting solution. And once you decide it's time to put this money back in the market, you can do so, without the money ever leaving your tax wrapper.
Make the most of your tax allowances.
ii expert tip #10.
Take full advantage of your ISA.
This year's adult ISA allowance is £20,000 – so if you have cash to spare and unused allowance, or shares in a Trading Account, now is the time to make your money work harder. The more you pay in now, the more time your money has to grow. With ii, you only pay a low monthly flat fee for your entire subscription and not for each account.
ii expert tip #11.
Bed and ISA to beat the CGT hike.
If you have an ii Trading Account and some spare ISA allowance for the current tax year, Bed and ISA can be a useful trick to swerve CGT. Put simply, it’s a process where you sell holdings outside of tax wrappers and repurchase them within your ISA. Provided the profit you realise for the tax year in question (you can also deduct any losses you’ve made) is within the £3,000 CGT allowance it should not trigger a tax charge.
ii expert tip #12.
Save for a better retirement.
You can contribute up to 100% of your annual earnings to a pension (capped at £60,000 - or £10,000 if you've started drawing flexible income from your pension) and get tax relief on what you pay in. So if you have spare cash lying around in savings or leftover monthly income, it could be working harder in your pension. Even an extra 1% of your salary can mean an extra £25,000 in retirement.
Check out our SIPP calculator to see if you are saving enough for retirement, and our pension drawdown calculator to find out how long your pension could last.
ii expert tip #13.
Maximise pension tax relief.
One of the big attractions with pensions is that you get income tax relief at your marginal rate; in order words, the rate of tax you pay on the next pound you earn. Basic-rate tax relief is added upfront in the form of a 25% government top up, and if you pay 40% or 45% tax, you can claim back extra via self assessment.
ii expert tip #14.
Plan for your children’s future.
There are many ways you can help support your children’s financial future - teaching them about pocket money, saving in an ISA to help pay school fees, or by opening a Junior ISA to give them a helping hand once they turn 18. On our Investor and Super Investor plans you can add Junior ISAs to your ii account at no extra cost, and you can contribute up to £9,000 per child per year.
ii expert tip #15.
Plan your finances jointly.
If you're married or in civil partnership, taking a joint approach to your finances can bring real benefits. For starters you can double-up with your annual tax-free allowances and exemptions, giving you extra scope you protect your wealth from the taxman.
Open an account
Whether you are looking for a general trading account, an ISA or a SIPP, we’ve got you covered with a low, flat fee.
SIPP.
Take control of your pension with our £5.99 a month Which? Recommended SIPP.
The value of your investments may go down as well as up. You may not get back all the money that you invest. If you are unsure about the suitability of an investment product or service, you should seek advice from an authorised financial advisor.
Please remember, SIPPs are aimed at people happy to make their own investment decisions. Investment value can go up or down and you could get back less than you invest. You can normally only access the money from age 55 (57 from 2028). We recommend seeking advice from a suitably qualified financial advisor before making any decisions. Pension and tax rules depend on your circumstances and may change in future.