Maximum amount to invest in a tax year?

[hens00]

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Just a quick question regarding investments - what is the total amount a person is allowed to invest in a tax year? Ive tried searching for the answer on the internet, but cant seem to find a definitive answer.

I have used up my maximum ISA allowance, and wish to invest some more money purely for tax purposes. What other ways are there to invest money so that I do not have to declare it to the taxman? I have read about premium bonds and National savings accounts, and believe that they are tax free in that you do not have to pay tax on the interest gained from the investment, but does that also mean, like ISAs I can use them to offset against income tax??

Thanks in advance.

[drivetowin]

National Savings have a handy tax free savings calculator - according to them you can save up to £93,000 p.a. tax free.

National Savings & Investments - Tax and savings

[hens00]

Jeez, I wish I had 93K spare to invest...

On the website it shows this:

"You can invest up to £93,000 tax-free with NS&I – find out more with our tax-free investments calculator. You have worked hard for your money...make it work harder for you. With no income tax to pay on the investments shown below, you get to keep all your returns."

So it states I can invest upto £93,000, and not pay tax on the interest gained. But how much can I invest in a year which will help offset against my profits? Or is that the same amount?

If for example I made £93,000 this year, then surely its not possible for me to invest it all into NS&I and declare to the taxman that I made zero profits and therefore have no tax to pay??

[drivetowin]

With the exception of a pension, I don't think there is any investment you can make that is tax free in the sense that you mean - even ISAs are only tax-free on the interest/dividends - you will still have paid tax on the money before you invest it.

[AndypH]

What investment vehicles are people using on here anyway? Everyone just sticking to standard banks and savers, or looking for something with more potential, property, paper assests etc?

[Frostie]

Open an ISA in your partners name?

[hens00]

Open an ISA in your partners name?

Not sure I love her that much.....

Thanks for the pension advice drivetowin, Im gonna explore that avenue. Its about time I sorted one out for myself.

[zaq]

invest in building more sites buying more domain names, you get a better return then the bank interest, thats what i do.


Note: The material in my post does not constitute advice and you should not rely on my post to make (or refrain from making) any decision or take (or refrain from taking) any action.If you have any doubts you should contact an independent financial adviser.

[Frostie]

Not sure I love her that much.....

Haha in thats case, don't

Agree - look at Pension as an alternative. It all depends in how much you are talking about, your plans for the future, your current position etc etc. Like Zaq says, I have in the past reinvested however this year I intend to reap my rewards.

Next year I plan to reinvest, but I dont want to keep reinvesting year after year after year and not actually seeing anything for my hard work. Remember, you never know what tomorrow may bring (what a happy note to end on... sorry)..