Investor tax made easy

The current tax-free Capital Gains Tax allowance for the 2023/2024 tax year is £6,000. 

You can make a profit up to this amount in capital gains without owing tax on it. However, if you make more than this amount, you’ll need to report it to HMRC and pay CGT through a tax return.

Capital gains include profits from assets like property, stocks and shares, crypto, paintings and more. Figure out what you might owe with our CGT calculator. 

The type and amount of tax you pay depends on what kind of investment income you’re earning. 

This can include Income Tax, Capital Gains Tax, and/or Dividend Tax.

Learn more about the types of investment income and what taxes you might owe HMRC.

If you’re invested in a small business or start-up that is part of the Enterprise Investment Scheme (EIS), you’ll be eligible for EIS loss relief if the business fails.

It’s a type of tax relief available to you when you sell your shares of an EIS business at a loss. The tax relief allows you to reduce the amount of tax you pay HMRC.

Learn how to claim EIS loss relief here.

Simply, it’s when a person or business lawfully pays the least in tax that they need to. 

It’s not the same as tax evasion, which is illegal. 

Learn more here.

You can be more tax-efficient in a different number of ways such as using your annual allowances, investing in ISAs and private pension accounts, putting money into Venture Capital Trusts, and more. 

Read all about tax-efficient investments.

A dividend is a sum of money you might receive if you own shares in a profitable limited company. 

There is a yearly tax-free dividend allowance and for the 2023/24 tax year, it’s £1,000. This means you won’t need to pay tax on any dividend income under £1,000. 

If you do make more, you pay tax based on what salary band you fall into and will need to report it to HMRC through a tax return.

Depending on your situation, you could need to pay Capital Gains Tax and/or Income Tax. 

If you’re only spending, selling, or exchanging crypto, you’ll more than likely only owe Capital Gains Tax on your profits over £6,000 because HMRC considers crypto an asset in this instance.

If you’re mining, staking, getting paid in crypto, or receiving crypto airdrops, you’ll probably owe Income Tax on earnings above £12,570 (Personal Allowance) because HMRC considers these actions earning an income. 

The exact amount you need to pay is completely unique to you, so you’re better off using our crypto tax calculator for a more accurate estimate.

HMRC considers regular trading an income-generating activity, which means you’ll likely need to pay Income Tax and National Insurance Contributions on earnings more than £12,570.

Investing, on the other hand, is seen as more of a one-off type of transaction and more likely to be subject to Capital Gains Tax. 

Learn more about the pros and cons of each.

HMRC have announced a change for PAYE high earners. If you earn less than £150k from your PAYE salary, you will not have to file a UK tax return in the 2023/24 tax year.

You’ll still need to file a tax return if you earned £100k or more during the 2022/23 tax year.