Choosing Investment Based Upon Tax Position
This section is designed to help individuals and tax payers, limited companies and charities with simple lists for investments that may suit their tax position.
Your personal tax position and the tax position of the investment plan itself drastically affect the best choice of investment plan.
Non Tax Payers investing money should consider the following investments:
Basic Rate Tax Payers investing money should consider the following investments:
Higher Rate Tax Payers should consider the following investments:
Limited Companies investing money should consider the following investments:
Charities and Trusts investing money should consider the following investments:
When investing for Trusts and Charities all of the usual decisions that affect investing apply, such as:
Trustees must take care to comply with current legislation and consider the tax treatment of the Trust for all parties concerned.
Trustee Act 2000
The Trustee Act 2000 came into force on the 1st February 2001 and applies only in England and Wales. The Trustee Investments Act 1961 still applies in Scotland with the old range of approved investments.
The Trustee Act 2000 applies to both new and existing Trusts and sets out duties and powers for Trustees. The most notable change to the old laws was in respect of investments, giving Trustees much wider scope for investing the assets of the Trust.
Trustees now have the power to invest the Trust fund monies anywhere they see fit as if they themselves were entitled to the assets of the Trust. When making investment decisions Trustees must consider how suitable the investment is for the Trust and diversify investments as far as is appropriate.
The Trustee Act 2000 obliges Trustees to review any investments made with Trust money on a regular basis and to obtain proper investment advice, possibly from an Independent Financial Adviser.
Advice: If you are acting for a Charity or a Trust and need help, request advice today.
Trustee Investments Act 1961 - rules before 31 January 2001
Until the 31st January 2001, the Trustee Act 1961 set out stipulations for Trustees and the investment of Trust monies.
These were as follows: