In such circumstances a move to capital growth or tax-free investments may preserve age allowances. Family Companies Maximising the potential, minimising the extraction costs. If the payment of bonuses to directors or dividends to shareholders is contemplated, careful thought must be given as to whether payment should be made before or after the end of the tax year. This will affect the payment date for any tax and may affect the rate at which it is payable. Remember that any bonuses must be paid within nine months of the company s year end to ensure tax relief for the company in that period.
Some investments benefit from a favourable tax status.
We consider the main ones below. Any investment decision should involve consideration of all the relevant factors, the risk level, the need for income and capital in both the short and long term as well as the tax advantages. The maximum investment limits are set for tax years. In practice most ISA providers are selling ISAs solely investing in stocks and shares. Banks and building societies are providing mini cash ISAs.