Maximising your savings

Choosing how to invest your savings and make the most of your investments can be a difficult decision. Our team of experts have put together some useful information with guidance of how you can get started with your savings and investments, and how to make the most of any existing funds you have saved away.

Getting started with your savings

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Getting started with pensions

Pensions are the best use of your savings as a long term investment when planning for life after retirement. There are many different types of pensions depending on your needs, most of which invest the money you save is on your behalf. We offer a Self-Invested Personal Pension service, which allows you to make your own investment decisions with your pension savings.

Getting started with ISAs

Individual Savings Accounts (ISAs) are great options to shelter your savings and investments from tax. The government offers a tax free ISA allowance up to £20,000 every financial year. Our Stocks and Shares ISA allows you to invest your tax free allowance in your choice of shares, funds, investment trusts or bonds.

Getting started with investment accounts

Investment accounts let you create a portfolio of investments that's right for you. With a Close Brothers investment account, you can invest in a range of managed funds, stocks and shares, deposits, gilts, and exchange traded funds (ETFs). Unsure where to start? We have a range of ready-made portfolios to invest in, managed by our experts.

How to make the most out of your savings and investments?

Maximise your tax-free investment allowances

When you save or invest, you’ll pay tax on earnings and gains. By using your annual ISA allowance, up to £20,000 can be paid into an ISA without the requirement for income or capital gains tax. It’s important to note that this amount cannot be rolled over to future tax years, so if you don’t use it, you’ll lose it. If you're an existing client, you can log-in and top-up your ISA today.

Find out more about ISAs

Review your pension contributions

It is worth remembering your pension plan to optimise your savings by making sure your contributions are up to date. To encourage you to save, the government will top up your pension contributions as tax relief at your highest rate of income tax. While basic rate taxpayers receive tax relief of 20%, higher rate and additional rate taxpayers can claim back 20% and 25% through tax returns. From the age of 55, the amounts you
invest, how you invest and the amount you withdraw is your choice.

Gifting when reviewing inheritance tax threshhold

For the first £325,000 of a person’s estate (£650,000 for a married couple), inheritance tax (IHT) is not charged – but when property is taken into consideration, this amount can be easily breached. Giving away some of your wealth (known as gifting) can reduce IHT obligations. For example, if a property is being left to children, the tax-free amount can increase to £500,000 for an individual or £1 million for a couple. However, it’s important to note that gifts may only be realised if they are given 7 years before the asset owners’ death. While this is a complicated area and the rules change regularly, we are available to guide you.

Capital gains tax allowance (CGT)

If an asset has increased in value, when sold it will be subject to CGT. However, there are ways to reduce obligations. For example, for investments, the tax-free allowance is £12,300. Indeed, you may also consider selling some assets at a loss to reduce overall CGT. Assets may also be transferred to a partner, so the allowance can doubled, with liabilities shared between two people’s annual allowance.

Consider charitable donations

One way to reduce CGT in particular is to consider giving money to charity. As well as being a noble thing to do, by donating land, property or qualifying shares to a charity, some income tax and CGT relief may be available.

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Still not sure how to start investing?

When you invest for the first time, you are embarking on an important journey that should enable you to take control of your future and achieve your financial and lifestyle goals. Yet while investing is exciting, it can also seem daunting if you have had no prior experience.

Read our guide on the basics of investing