As a high net worth or high earning individual in the top income tax bracket you will find yourself faced with a sizeable annual tax bill. High income or good bank balance equals higher taxes. It’s simply a fact of life.
Luckily, the UK government understands that under the right circumstances, it makes sense to lessen the tax burden of wealthier residents if that money instead helps stimulate the economy or is offset against future tax returns or the need for state support. The result is a range of government-supported investment structures that the high net worth and high earners can take advantage of to offset against annual tax commitments.
The age-old saying that the only two things that are sure in life are death and taxes is hard to argue with and is as true now as it has ever been. In fact, of the two, if either were to foreseeably change at some point in the distant future, rendering the saying obsolete, most people’s money would be on death.
We need public services and infrastructure and as much as it may pain us to see the percentage of our earnings that are whisked away to the public coffers, we also understand that it’s a necessary part of a functioning society.
Topics covered in this Guide
- ISA Types
- Private and Workplace Pensions
- Government income tax-back top-ups
- EIS/SEIS Investments
- Charitable Contributions