Investments
The sections below contain tax saving advice for people with investments.
Life insurance gains
If you have a gain on a life insurance policy and there is a notional tax credit attached to it, you should enter the details in boxes 12.3 to 12.5 of your tax return. If there isn't any notional tax you should enter the gross figure in box 12.2. If you are unsure whether there is a tax credit you should ask your insurance company or financial adviser.
Gains on void ISAs
If you have subscribed to more than one life insurance Individual Savings Account (ISA) during the tax year, the most recent policy will be voided. If you have made a gain on this policy you will have to pay the tax due. Your ISA provider should inform you of this in writing. This needs to be included in boxes 12.6 to 12.8 on your self assessment tax return.
Pension premiums paid
If you are claiming for pension contributions made during the year, you should ensure your date of birth is entered in box 22.6 of the self-assessment tax return.
Types of investment
Different types of investment exist, catering for the various needs of the investor. They include:
- Children's Bonus Bonds
- UK life assurance endowment policies
- Enterprise Investment Schemes
- Enterprise Zones
- Gilt's (UK Government Stocks and Bonds)
- Individual Savings Accounts (ISAs)
- Investment bonds
- Various national savings accounts
- Pension Schemes
- Venture capital trusts
- Bank/building society accounts
Individual Savings Accounts (ISA)
You can invest up to £7,000 into a Maxi ISA or £3,000 into a Mini cash ISA, £3,000 into a mini stocks and shares ISA, and £1,000 into a life assurance ISA. See the ISAs article for more information.
Charitable giving
Deeds of covenant were replaced by the new gift aid scheme on 6th April 2000. Existing deeds of covenants will continue to run until the end of their term.
With no minimum donation, all gift aid payments qualify for basic rate tax relief. Higher rate tax payers can claim back 18% tax relief through their tax office.
Payroll giving (payments to charities made through the payroll) also attracts the tax relief as for gift aid payments. For the next three years, the government will add 10% to any gift made through payroll giving.
This page was last reviewed on 03 April 2006. The information may not reflect changes in legislation made after this date.
This is only a guide to your tax position and should not be relied on in place of professional accounting or tax advice. Any calculated figures are illustrative and are based on the data you provided.
