PUBLISHED: 15:04 21 September 2018 | UPDATED: 15:04 21 September 2018 Peter Sharkey Is there such a thing as an investment shortcut? Image: Getty Images This content is subject to copyright. In this week’s column, financial expert Peter Sharkey discusses how investors might be able to retain more of what is theirs. Is a lottery ticket a more worthy investment than an ISA? Image: Getty ImagesPerhaps it’s human nature, impatience, a lack of discipline, or a combination of all three, but our apparent willingness to seek short cuts probably accounts for the frequency with which savers and investors ask themselves whether, by doing A or B, or maybe investing in X or Y, they can bank a quick profit. Frankly, unless they’re incredibly lucky, the answer is a resounding ‘no’. James Dyson’s experience proves the point. While developing his eponymous vacuum cleaner, the inventor, industrialist and all-round good guy exhausted his … [Read more...] about Should you take out an ISA to save tax?
Sundaram tax saver
ONE in 10 Brits retiring this year expect to withdraw their entire pension savings at once, risking a potential tax bill shock, according to new research. The pension reforms of 2015 allowed those approaching retirement to access any amount of cash from their pots, with the first 25 per cent being tax-free. This lump sum is often used at the outset of retirement to pay off a mortgage or help children onto the property ladder. But research from Prudential found that 10 per cent of those retiring this year plan to take all their pension savings as a lump sum. In total up to 20 per cent will risk unnecessary tax bills by taking out more than their tax-free allowance as a lump sum while more than one in three are using the lump sums to fund holidays. But savers are not necessarily splashing their cash as more than two-thirds plan to invest in other areas such as property, a savings account or an investment fund. The 25% tax-free amount - how does it workThere are two ways you can … [Read more...] about One in 10 people retiring this year face pension tax shock – here’s how to avoid it
I HEAR a lot of tips and tricks about how to save the pennies – including from the Sun Savers community. I challenged myself to save on my weekly food shop using your suggestions. And guess what? I saved £17 in a week. Here’s how. 1. Cashback. I had never used cashback apps before but TopCashback, Quidco and CheckoutSmart are all popular. In my local Asda, I spotted some Rana fresh pasta on a 100 per cent cashback offer in-store, so I bought two packets and uploaded my receipt online. I was refunded the full £5 for two packets, in just a couple of days. It was easy. I will check out some of the cashback apps next. SAVED: £5 2. Asda Price Guarantee. If your Asda shop isn’t ten per cent cheaper than the same shop at Tesco, Sainsbury’s, Morrisons or Waitrose, Asda will give you a voucher for the difference. Just check your receipt online and it will say if you have a voucher or not. If so, print out the voucher. I saved £9 in a week thanks to a … [Read more...] about Our Sun Savers Editor tried your money-saving tips – and she ended up chopping £17 off her weekly shop
The Government has been called on to lower the tax on the investment funds favoured by families. The tax on investments used to be in sync with the Dirt tax on savings but it is now higher. The Dirt (deposit interest retention tax) has come down to 37pc this year. It is due to fall to 33pc by 2020. But the exit tax on life insurance investments, or funds sold by life insurance and investment firms, remains at 41pc. It has been claimed this is punishing the prudent. Industry group Brokers Ireland said there must be fair treatment for all savers. Government policy should not give preferential treatment to certain investment types, the organisation said on behalf of its 1,300 members. It called on the Government to reduce the exit tax to be fair to middle-income investors. The tax on savings accounts in banks and credit unions has started to come down. The Dirt tax rate and the exit tax rate used to rise and fall in tandem, but the link between the two was broken recently. … [Read more...] about Two-tier taxation regime ‘punishing prudent savers’
The new tax year starts on Friday — and with it comes a hotchpotch of changes to the tax rules which makes the system even more complicated. There are some winners and some losers. Investors face a raid on their dividends incomes, buy-to-let landlords face higher tax bills, homeowners will be able to pass more to their children without being hit by inheritance tax — and different income tax rates will apply in Scotland compared with the rest of the UK. Here, Money Mail runs through your new tax bands and rules for 2018-19. INCOME TAX BILL TO FALL Millions of workers are in for a tax cut of up to £472 a year. The amount of money you can earn before paying any tax at all — the personal allowance — goes up from £11,500 to £11,850. The rate of tax, 20 per cent for basic-rate payers, 40 per cent for higher-rate payers and 45 per cent for additional-rate payers, stays the same except in Scotland (see below). RELATED ARTICLES Previous 1 2 … [Read more...] about We run through the new tax bands and rules for 2018-19