Generating tax-efficient income

tax

There are a variety of product wrappers to suit different tax payers risk appetites, though it is necessary to keep checking because as rates on offer change so do net tax rates

With a myriad of different product wrappers available, all with different tax rules, how does the income investor choose the most tax-efficient way to invest? This article reviews the different types of product wrappers that can be used to generate income, comparing the tax consequences for basic rate and higher rate taxpayers. Rates of income on offer may be quoted gross of tax, net of tax or partially taxed, while benefits may be paid on a different basis to that quoted. Income rates quoted could be guaranteed or could simply be a target return and have some risk associated with the rate...