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Tax-efficient Investing If you’re investing in the stock market
And you live in either the UK or the US
There are various, tax-efficient wrappers you can utilise to save yourself £1000’s in tax
Let me run through your options and what each means for money
Let’s go...
UK Options 
GIA (General Investment Account) –
Invest unlimited amounts of cash. Capital gains (appreciation & dividends) up to £12,300 per year are tax-free
However, this is likely to change as of April 2021
Lowering the threshold and increasing the tax rate
GIA (General Investment Account) –
Invest unlimited amounts of cash. Capital gains (appreciation & dividends) up to £12,300 per year are tax-freeHowever, this is likely to change as of April 2021
Lowering the threshold and increasing the tax rate
Stocks & Shares ISA
Pay in up to £20,000/year,
so long as you have no other ISA savings (lifetime ISA for example)
All your capital gains on this amount are tax-free
The £20k limit is subject to change, but changes are more likely to consist of increases to the limit
Pay in up to £20,000/year, so long as you have no other ISA savings (lifetime ISA for example)
All your capital gains on this amount are tax-freeThe £20k limit is subject to change, but changes are more likely to consist of increases to the limit
US Options 
Roth IRA:
A special retirement account
You pay tax only on the money going into your account
All future withdrawals are
tax-free
Contribute up to $6K/year, or $7K if you’re over 50
Total limit: $139,000 as an individual or $206,000 as a married
couple
Roth IRA:
A special retirement accountYou pay tax only on the money going into your accountAll future withdrawals are tax-free
Contribute up to $6K/year, or $7K if you’re over 50Total limit: $139,000 as an individual or $206,000 as a married couple
Standard brokerage account:
Exactly as it sounds really
A taxable account
Any capital gains are subject to tax in the year the money is received (once you sell a position or receive a dividend)
Any losses can be written off against your taxes too 
Exactly as it sounds reallyA taxable accountAny capital gains are subject to tax in the year the money is received (once you sell a position or receive a dividend)Any losses can be written off against your taxes too
This is a basic overview of the most common types of investing accounts.
The US has several other options & it can seem quite complicated.
But fear not! Just keep it simple!
If you’re from the US & want some more info, reach out to @SenseofDollars
For anything else, DM me
The US has several other options & it can seem quite complicated.
But fear not! Just keep it simple!
If you’re from the US & want some more info, reach out to @SenseofDollars
For anything else, DM me
