Depending on the investor’s situation, the state of the market, and any modifications to the tax code, tax-efficient investment techniques can alter. According to my observations, there are a number of investment tools and methods that are regarded as tax-efficient. Always get advice from a local tax professional or financial planner who is knowledgeable about the most recent regulations before making any decisions. Here’s an overview of some tax-efficient investment options in Ireland:
Individual Savings Accounts (ISAs):
These are savings or investment products that are exempt from income and capital gains tax on returns.
Retirement Accounts/Pensions
Personal Retirement Savings Accounts (PRSAs) and Occupational Pension Schemes: Contributions to these accounts can reduce your taxable income, and the investments grow tax-free until retirement. Upon retirement, individuals might be able to take a portion of their pension as a tax-free lump sum.
Investment Property
Using leverage (mortgage) to purchase a property can allow an investor to claim tax relief on mortgage interest. Keep an eye on Capital Acquisitions Tax (CAT) thresholds if passing properties to family members.
Enterprise Investment Scheme (EIS)
This scheme offers tax reliefs to individuals who invest in new shares of qualifying companies. It’s designed to help smaller higher-risk trading companies raise finance by offering tax reliefs to investors.
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I’m Orla, a seasoned Tax Accountant and passionate blog writer with a mission to demystify the intricate world of Value Added Tax (VAT). With a career spanning over a decade in the realms of finance and taxation, I have honed my expertise to assist businesses and individuals in navigating the complex landscape of VAT regulations.
My journey into the world of finance and taxation began with a strong fascination for numbers and a desire to make a meaningful impact. Armed with a degree in Accounting, I embarked on a career that would see me becoming a trusted advisor to businesses of all sizes. Over the years, I have had the privilege of helping countless clients optimize their financial operations and ensure compliance with VAT laws. Connect with me through my blog, where you’ll find insightful articles, practical advice, and a friendly voice to guide you through the intricate world of Value Added Tax.
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