Get Started in Shares

chapter 17

Taxation

If the Lord loveth a cheerful giver, how he must hate the taxpayer!

John Andrew Holmes

You will have to pay tax on your investments. But this does not mean that there aren’t ways of legally minimising the amount that you pay. I advise you to take these steps. This chapter explains the forms of tax that have to be paid and the legal ways to reduce the amount.

First, understand the difference between evasion and avoidance of tax. It is illegal to evade tax (i.e. deliberately make a false statement or omit a relevant fact) so you need to keep careful records and declare gains at the appropriate time (e.g. on an annual self-assessment tax return).

There are many ways of avoiding tax – ‘avoiding’ is OK, it’s legal. You can ...