3 Steps

to Retirement Heaven

Investment Tax?

Don't pay the max in tax.

When people make an investment, in most cases, the Tax Man wants to take a slice of the returns. But here’s the thing, I bet you didn’t know that whether he gets a big cut or a little slither is actually up to you. Because for every investment you make you have a form to complete which indicates how you would like your investments to be taxed you can choose to be taxed with either Income Tax or Capital Gains Tax. And choosing one or the other makes a huge difference.

If you choose the Income Tax option your investment could be liable for taxation of 20% or more. Ouch! But if you go for the Capital Gains option you’re in control of when that tax is paid and in some cases you won’t pay anything at all (less than 98% of the population pay Capital Gains Tax).

Most investment products are taxed with Income Tax but at Davis Martin we know the ins and outs of investment taxation and how to avoid the pitfalls. So if you want to keep as much of your investment as possible speak to us and we’ll help and advise you on how to do just that.

An annuity

Isn’t always the best option

When you retire it’s common practice to opt for an annuity. This simply means taking an annual income (just like a wage) which you will be paid for the rest of your life. In theory this sounds very sensible, but be careful, it’s not always your best option. Here’s why…

Most annuities are taxable which means for every £20k income you receive you could pay as much as £8k in tax. But by leaving your fund where it is and withdrawing money just when you need it, only part of it is taxable so you pay far less tax, while your pension fund continues to generate interest and make even more money for you.

If this sounds like something you’d like to discuss (who wouldn’t?) we can give you expert advice on the best way for you not the taxman to manage your money in retirement.

Learn to spend

It’s what you’ve saved for after all

We know that after years of saving you’ve got into the habit of being careful about what you spend. But the truth is that retirement is what you’ve saved hard for so it’s time to let your hair down and enjoy it as much as you can by ticking off as many things on your bucket list as possible. Ready, steady, go for it.

Get in touch

"Davis Martin have helped us generate more money for ourselves, not the tax man. We don't pay tax on our savings. Why should we? It's our money not the tax man's!"

Previous Customer, Oldham