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... What would you do with the money with investment criteria and tax avoidance being the main considerations?
When you play the national lottery it is like taking a gamble and the hence the £3 million pounds is tax-free. The real challenge for the winner of the lottery is to invest money wisely while getting the best returns and paying as less tax as possible. During this essay it will be explained how best to invest your money so that you get the best returns possible while also paying the least tax possible. There are many different types of tax that have to be taken into account when deciding how to invest your money they include income tax, capital gains tax, inheritance tax etc…
One of the options I can invest my money is an Individual Savings Account (ISA); this is a tax-free investment that replaced PEP’s and TEESA’s. ... The returns on interest that is tax-free on both schemes will be greater on the Maxi ISA rather then the mini ISA. Alternatively I can just open a national savings bank ordinary account, but only the first £70 is tax free the rest of the money will be taxed but you will still get good interest on your £3 million pounds.
Another good investment is National Saving Premium Bonds, this is a tax-free investment but there are some risks. ... All proceeds are tax free this makes it a very attractive scheme for higher rate tax payers who can invest enough to get a ‘tickle of prizes’ effect at 3% per annum in bond prizes, this is worth 5% per annum elsewhere in tax deposit. Also if I had any children I would invest my money in Friendly Society accounts I could save £25 per month tax free on my children in a baby bond.
Approximate Word count = 1391
Approximate Pages = 5.6
(250 words per page double spaced)
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