What is a tax wrapper
A tax shelter around an investment that changed the way it’s taxed
Types of ISA
- Stocks and shares ISA
- Cash ISA
- Innovative finance ISA
- HTB
- LISA
All have subscription limits to meet tax benefit
Child trust fund
Tax free savings account on behalf of children.
Initial payment from government.
No access to funds until child is 18
Junior ISA
Introduced after CTF stopped. Same rules apply apart from government initial payment
Venture capital trusts and enterprise investment schemes
These are schemes provided by government to incentivise investment with tax relief.
To encourage private investors to provide funds to new companies not listed on stock exchange
Difference in VCT and EIS
VCT is a normal investment runs like a fund with investment manager
EIS is a system of tax reliefs that company applies for. If eligible the investor can also claim tax relief
SIES
Seed enterprise investment scheme. Offers even higher tax relief than EIS. aimed at smaller companies (startups)
