Smart Money Guides 2026/27
By Omair SaoLast reviewed — rates for the 2026/27 tax year. See how we check our figures.
Twenty-two ways to hold, grow or pass on money with less tax, each explained with the 2026/27 rules, a worked example, the advantages and drawbacks, and who should avoid it.
The guides follow the same order as our company extraction calculator: the options that cost nothing in tax and carry little risk come first (ISAs, employer pension contributions), then the reliefs that trade risk for tax savings (VCT, EIS, SEIS, Business Relief), and finally the structures that only make sense for larger family wealth (trusts, investment bonds, family investment companies). Every figure was checked against GOV.UK, and the pages say plainly where a rule changed in April 2026, such as the VCT relief cut to 20% and the £2.5 million Business Relief allowance. None of it is personal advice: the aim is to let you walk into a conversation with an accountant or adviser already knowing the vocabulary and the trade-offs.
ISAs and tax-free wrappers
Simple, accessible and free of income tax and capital gains tax. The first place most people should put money they have already taken out of a company.
Cash ISA
A tax-free cash savings account for UK adults. All interest earned inside a Cash ISA is completely free of income tax, making it the simplest tax shelter available.
Low risk · instant access
Stocks & Shares ISA
A tax-free investment wrapper for UK adults. All income and capital gains earned inside are free of UK tax, making it the core investment vehicle for most people.
Medium risk · easy access
Lifetime ISA (LISA)
A government-bonused savings account for 18-39 year olds. Receive a 25% bonus on contributions up to £4,000 per year, for use towards a first home or retirement at 60.
Medium risk · restricted access
Innovative Finance ISA (IFISA)
An ISA wrapper for peer-to-peer lending and debt-based investments. Returns from qualifying P2P platforms are sheltered from income tax within the ISA rules.
High risk · restricted access
Junior ISA (JISA)
A tax-free savings and investment account for children under 18. Parents, family, and friends can contribute up to £9,000 per year, with the money belonging to the child at 18.
Low risk · locked away
Child Trust Fund (CTF)
A legacy tax-free savings account for children born between 1 September 2002 and 2 January 2011. Existing CTFs continue to grow tax-free and can be transferred to a JISA.
Low risk · locked away
AIM ISA / Business Relief ISA Portfolio
An ISA invested in qualifying AIM-listed shares that can benefit from Business Relief for IHT purposes. Combines the ISA tax shelter with 50% Business Relief on qualifying AIM shares held for 2 years (deaths from 6 April 2026).
High risk · easy access
Pensions
The most powerful reliefs available to a company owner, in exchange for locking the money away until the minimum pension age.
SIPP / Personal Pension
A self-invested personal pension offering income tax relief on contributions and tax-free growth. One of the most powerful long-term tax planning tools available in the UK.
Medium risk · locked away
Company Pension Contributions
Employer pension contributions paid directly from your company. They save corporation tax, avoid employer NI, and incur no personal income tax — one of the most tax-efficient extraction methods.
Low risk · locked away
Small Self-Administered Scheme (SSAS)
A bespoke occupational pension for business owners offering maximum control. A SSAS can lend back to your company, hold commercial property, and invest in a wider range of assets.
Medium risk · locked away
Investment reliefs and Business Relief
Government schemes that cut income tax or inheritance tax in return for backing smaller or unlisted companies. Higher risk and long holding periods.
Venture Capital Trust (VCT)
A listed investment trust investing in small UK companies. VCTs offer 20% income tax relief (for shares issued from 6 April 2026), tax-free dividends, and CGT-free disposal — but carry higher risk.
High risk · restricted access
Enterprise Investment Scheme (EIS)
Direct investment into qualifying smaller UK companies with 30% income tax relief, CGT exemption after 3 years, CGT deferral, and loss relief. Very high risk but generous reliefs.
Very high risk · restricted access
Seed Enterprise Investment Scheme (SEIS)
The highest income tax relief available in the UK at 50%. SEIS targets very early-stage companies with up to £200,000 per year investment, plus CGT reinvestment relief.
Very high risk · restricted access
Business Relief Qualifying Shares & Assets
Investments in unlisted or qualifying AIM shares that can qualify for Business Relief after 2 years: 100% on the first £2.5 million of qualifying assets per estate and 50% above that, for deaths from 6 April 2026. A key estate planning tool for business owners with significant wealth.
High risk · restricted access
Trusts
Ways to pass wealth to family members while keeping some control. Each has its own inheritance tax charges and reporting duties.
Bare Trust
The simplest trust structure where the beneficiary has absolute right to the assets. Often used to hold investments for children, with income and gains taxed at the beneficiary's rates.
Low risk · easy access
Discretionary Trust
A trust where trustees have full discretion over distributions to beneficiaries. Used for control, succession planning, and protecting assets across generations.
Low risk · restricted access
Ordinary investment accounts
No special tax treatment, but no limits either. Useful once allowances are used up, and for money earmarked for children.
Onshore Investment Bond
A UK life insurance wrapper used for tax deferral. Gains are taxed only on a chargeable event, with 5% annual withdrawals treated as return of capital and top-slicing relief available.
Medium risk · easy access
Offshore Investment Bond
A non-UK life insurance wrapper offering enhanced tax deferral. No internal UK tax is paid on fund growth, giving greater compounding potential than onshore bonds.
Medium risk · easy access
General Investment Account (GIA)
A standard taxable investment account with no special wrapper benefits. Useful for investing amounts that exceed ISA and pension allowances, with no limits on contributions.
Medium risk · easy access
Designated Account
An investment account informally earmarked for a child or purpose, but legally owned by the adult. The adult remains the beneficial owner and is taxed on all income and gains.
Medium risk · easy access
Company structures
Arrangements for substantial family wealth that need professional set-up and ongoing advice.
Premium Bonds
An NS&I savings product where instead of earning interest, your money is entered into a monthly prize draw. All prizes from £25 up to £1 million are completely tax-free.
Low risk · instant access
Family Investment Company (FIC)
A company structure used by families for long-term wealth management and IHT planning. Profits are taxed at 25% corporation tax rather than up to 45% personal rates.
Medium risk · restricted access