Five Unique Ways UK Investors Can Find Relief
- On March 8, 2023
- By GrowthInvest Marketing
It’s been 57 years since British rock band The Kinks released “Sunny Afternoon,” their irreverent hit about overzealous tax hikes. Yet as floods of investors brace themselves for more pain in the new financial year, the song can feel remarkably contemporary. Starting April 6, British citizens will need to balance sky-high inflation and uncomfortable interest rates against a barrage of “spending cuts and tax hikes worth £55 billion.”
In this article, I will uncover five under-used ways U.K. wealth managers can rake back some relief during more turbulent economic times.
Soon, the threshold for paying capital gains tax (CGT) will be slashed, from £12,300 to £6,000 to £3,000. Alongside the changes to the dividend allowance, the government expects these taxes to bring in an additional £1.2 billion a year from April 2025. Undoubtedly, I see the added tax burden eating into investor returns.
However, the “wasting chattel” category of investments is exempt from CGT altogether. Vintage motorbikes, antique watches, motorized yachts, racehorses, whiskey casks and (my personal favorite) fine wine could all qualify. Wasting chattels have a life of 50 years or less and almost always include machinery. If only The Kinks’ lead singer, Ray Davies, had owned a yacht with a motor instead of sails, he might have been able to keep it.
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