Chapter 17
Taxation and investors
If you are fortunate enough to receive income or capital gains from your investments then Her Majesty’s Revenue and Customs (HMRC) will be interested in hearing about it. It is illegal to evade tax (deliberately make a false statement or omit a relevant fact) so you need to keep careful records and declare gains at the appropriate time (For example, on an annual self-assessment tax return).
The heart sinks at the prospect of handing over large sums, but don’t despair. There are many ways of avoiding tax – ‘avoiding’ is OK, it’s legal. You can take advantage of various tax breaks introduced by government – usually to encourage people to act in particular ways For example, (to save more, or to buy shares in ...
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