Double dip on tax relief and you could earn 16%

13 january 2013

Savvy investors can make their tax allowances and reliefs stretch further by becoming creative, according to advisers.

As well as being the deadline for Isas, the end of the tax year on April 5 is the cut-off for using up the pensions allowance (£50,000) and making the most of venture capital trusts (VCTs) for 2011-12.

Combining VCTs with pensions can net returns of up to 16%, and juggling assets such as investment bonds between spouses can reduce a tax bill of almost £20,000 to zero, according to figures produced for The Sunday Times.