Tax-efficient investment planning

A summary of the order of taxation on earnings, and its implications for savings in the pre- and post-retirement..

February 2020

Barry Foster

Vice President, Strategic & Technical Sales

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Risk Disclaimer

This content is based on our understanding of legal and tax regulations and practice at the time of writing (October 2019). It has been produced for information only. We do not provide tax, accounting, regulatory or legal advice. No action must be taken or refrained from being taken based on this content alone. Case studies are for illustrative purposes only.

Key takeaways:

  • The order of taxation
  • A review of tax-efficiency in the accumulation phase
  • What the tax-efficient options are at decumulation

A summary of the order of taxation on earnings, and its implications for savings in the pre- and post-retirement phases.

The order in which tax is applied to earned and investment income can have a major influence on the way investments are structured. Income is taxed – and allowances and tax bandings applied – in a certain order and capital gains are taxed after income.

Download our summary of the income tax bands, the order of taxation, tax-efficiency in the accumulation phase plus tax-efficient options for decumulation.

Risk Disclaimer

This content is based on our understanding of legal and tax regulations and practice at the time of writing (February 2020). It has been produced for information only. We do not provide tax, accounting, regulatory or legal advice. No action must be taken or refrained from being taken based on this content alone. Tax allowances and the benefits of tax-efficient accounts are subject to change and tax treatment depends upon individual circumstances.

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