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Investment and Money Making Ideas for the UK

Updated on February 16, 2015

UK Investment Ideas

Confused by the complexities of the UK savings and investment schemes and tax laws: PEPs; Pensions; ISAs; SIPPs etc.?

This article is all about some good investments available in the U.K. the ways to reduce your tax bill and improve your return: from simple saving accounts to more obscure investments like Zero Dividend Preference Shares and Investment Trust Warrants.

I have also written a separate (non-UK) article here:

More General non-Uk Specific Articles...

Please see the links to my related articles below, which go into a lot of detail about each type of investment.

Disclaimer: Information in this and other linked articles is for general information only and is not intended to be relied upon in making specific investment decisions. Appropriate independent advice should be obtained before making any such decision.

Avoid Tax

(Legally)

Tax Free Investment

Some forms of investment are tax-free or at least have a reduced tax liability: Premium bonds; ISAs; Personal Pensions (and SIPPs); Gold Sovereigns and some have generous allowances. I shall deal with the tax-free products first.

Premium Bonds

The thinking person's lottery? Tax free prizes, your money back at any time and completely backed by the UK gouvernment, but are they still good value?

Despite the tax-free return and the complete safety of your investment these are looking less good now for anyone except a higher-rate tax payer.

See the full article:

National Savings and Investment Premium Bonds

ISAs (and PEPs)

UK Individual Savings Accounts (ISAs)

Individual Savings Account or ISAs (formerly knows as PEPs - Personal Equity Plans) are tax free... well almost.

ISAs are probably the best tax-break available to most investors, both for cash and for equity/bond investment. I have written an article giving a full, in-depth analysis of ISAs and alternative investments.

Read the full article here:

UK Individual Savings Accounts (ISAs)

UK Personal Pensions and SIPPs

Get a full income tax rebate on investments into a UK personal pension, but in exchange lose access to your money until you are 55 years old. Income from a pension is taxable when you take an income after retirement (unlike an ISA where the gains/income may be taken at any time)


Non-tax-free Investing

Use your capital gains tax-free allowance with the following investments

Investment Trusts

Low cost investments similar to unit trusts, OEICs or Mutual Funds. They are generally not promoted by advisors because they don't pay commission and have lower annual charges - as a result they tend to outperform. There are other advantages and disadvantages.

Read the full article here:

Investment Trusts

Zero Dividend Preference Shares

Almost Crashproof? Absolute return?

Zeros are a safe equity investment with a target of achieving an absolute return - capital gain and no dividend makes them tax efficient for many. Zeros are shares in an investment company with a predefined end-date and value. The zero share holders are paid first before other classes of share holder making them safer:

Here is a full article about how to value and invest in zeros:

Zero Dividend Preference Shares

Investment Trust Warrants

Investment Trust Warrants are a derivative of investment trusts, usually issued on the launch of the IT as a sweetener for the initial investors: They are call warrants on the value of the IT, which can itself trade at a discount or premium to the underlying assets (usually a discount), so generally an IT will initially sink in value after launch, but the warrant gives a geared (leveraged) play on the value of the company, exercisable at a date some years in the future, but tradable in the mean-time via a broker.

Here is the full article about this rare derivative investments:

Investment Trust Warrants

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    • profile image

      nik_dazzles 7 years ago

      Hey! Good informative piece for those who are into Commodity Tips or Stock Market Analysis.. Thanks for the Stuff..

      I am also Learning working basics of Mcx Indian Commodity..Its kind of suitable lens.

    • profile image

      MChisselhurst 7 years ago

      I have a lens on making money that you may find interesting...

      ---

      Money Making App

    • Andy-Po profile image
      Author

      Andy 7 years ago from London, England

      @FinancialPlanner: Thank you very much for your comments. I have indeed considered becoming a financial advisor although currently all of my time is dedicated to my own investment portfolios. My articles and blogs are not intended to be taken as advice, but as explanation of the types of financial products available.

    • profile image

      FinancialPlanner 7 years ago

      Hi Andy, I hope you're authorised by the FSA to give all this investment advice! Don't forget the disclaimer " the value of investments may go down as well as up and past performance is not a guide to future performance!" You've obviously done a lot of research on this subject. Ever considered becoming a financial adviser?

    • profile image

      anonymous 7 years ago

      This lens is awesome. I love it. I am going to tell my editors on my Thai News website to write something about this lens and probably feature it.

      I will comment here again once we do.

      Great Work

    • Andy-Po profile image
      Author

      Andy 7 years ago from London, England

      @anonymous: Hi Susie, Thanks very much. I left an html link to the Alternative Investment lens, but it must have been removed. It's actually entitled: "Peter Temple: Investment and Finance Author" (https://hubpages.com/games-hobbies/peter-temple-al... and is specifically about the writings of Peter Temple who is a UK finance author who specialises in rare coins, stamps as well as more traditional investments.

      Thanks,

      Andy

    • profile image

      anonymous 7 years ago

      Hi Andy, I'm looking for your Alternative Investment lens that you mentioned in one of my guest books. Thank you for your good solid advice...always!

      Susie

    • Andy-Po profile image
      Author

      Andy 7 years ago from London, England

      @Surreymagic: Thanks very much. I had a look at your lenses too and added them as featured lenses (and you as a featured lensmaster) in the UK Investment and Finance Group lens.

    • Surreymagic profile image

      Surreymagic 7 years ago

      A very informative lens with just the right level of detail and aimed at UK audience.

      http://www.squidoo.com/savemoneysecrets

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      Craig_Miller 8 years ago

      Nice ideas taking into account current recession.

      online forex trading

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      julieannbrady 8 years ago

      Let me know Andy when you have a USA finance! I want to recoup my lost investment in my 401k. Before I retire. ;)

    • profile image

      Global_B2B 8 years ago

      You are part of my B2B Marketplace Headquarters business group so I thought I'd let you know about a new service I intend to start in a few days.

      I'm inviting you to become a subscriber to my weekly newsletter (free). Details on http://www.squidoo.com/groups/b2b-marketplace. Secure yourself a free membership!

    • profile image

      Global_B2B 8 years ago

      Thanks for joining my group: B2B Marketplace. You have a great lens here! 5*

    • TonyPayne profile image

      Tony Payne 8 years ago from Southampton, UK

      Very good information about UK investments. 5*****

    • Rich-H profile image

      Rich 8 years ago from Surrey, United Kingdom

      Great investment advice...and a well presented lens, as usual :)

    • profile image

      Mayflowerblood 8 years ago

      pretty awesome info!

    • profile image

      anonymous 9 years ago

      You're up to 53 lenses!!! You will pass me by. I am just trying to work on the ones I have. Really, just wanted to say Hi. But, I must say, another great lens by you! Solid!