Investment goals

How to make your investments more tax efficient

BMO's range of investment products could help maximise the tax efficiency of your portfolio.

Let’s talk about risk

The value of your investments can go down as well as up, and you may not get back what you originally invested.

Make your money work harder for you

You want to make your money work as hard as possible. If you have to pay tax on the returns earned on your investment this obviously reduces your gains, so it makes sense to take advantages of the tax-free allowances available to you. At BMO, we have a range of dedicated products that can help to maximise the tax efficiency of your portfolio. However, tax rules can change and everyone’s tax benefits are unique to their different circumstances.

As a result, we always recommend that you consult a professional financial adviser first. Nevertheless, there are many ways to ‘wrap’ your investments that will make them easier to manage and more efficient from a tax perspective.
 

Getting started

An ISA is one of the easiest ways to reduce the tax you pay on your investment portfolio. Any capital gains made within your ISA are free of capital gains tax and income tax so you can get to keep ALL your profits where generated. The ISA allowance for the 2019/20 tax year is £20,000. Using your full allowance each tax year will reduce the overall tax you pay on your portfolio. Children also have tax-free allowances, a Junior ISA allows you to save in a tax-efficient manner for your child, up to £4,368 for the current tax year.

Another tax-efficient way to invest is by using your money for pension planning purposes. Whichever you choose, at BMO we have a range of options available that are not only tax efficient but aim to provide the potential for growth, income or a combination of both.

Please note that the value of investments and any income from them is not guaranteed, and you may get back less than you invested.
 

Discover our ten Investment Trusts

Our 10 investment trusts provide a range of strategies with the option of capital growth, income or a combination of both and with a specific regional focus or with a global remit. To view our investment trusts click here.

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Let’s talk about risk

The value of your investments can go down as well as up, and you may not get back what you originally invested.

Glossary

Confused? Our handy glossary can help explain investing terms.

Related products

Literature

This section of the website is directed at persons who are located in the UK. Please read our full terms and conditions and the relevant Key Information Documents (“KID”) before proceeding with any investment product referred to on this website. Nothing on this website is, or is intended to be, advice to buy or sell any investments. If you are at all unsure whether an investment product will meet your individual needs, please seek advice.