Key Concepts
- Income Tax Bands: Different rates apply depending on your taxable income.
- Capital Gains Tax (CGT): Tax on profits when you sell certain assets.
- Dividend Tax: Tax on dividend income above allowances.
- Personal Savings Allowance (PSA): A limited amount of interest income that can be tax‑free depending on your tax band.
Using ISAs
ISAs allow you to shelter interest, dividends, and capital gains from UK tax, up to the annual allowance. This can be a core building block of a tax‑efficient strategy.
Pension Contributions
Pension contributions can attract tax relief at your marginal rate, effectively reducing your taxable income. This can be particularly powerful for higher‑rate taxpayers, subject to annual and lifetime limits.
Spread Betting & Tax
In the UK, profits from spread betting are currently generally free from capital gains tax, but losses are not tax‑deductible. Rules can change, so always check current guidance.
This page provides general information only. It is not tax advice. Tax rules can change, and their impact depends on your individual circumstances. Consider speaking to a qualified tax professional.