There are a number of simple ways to reduce your potential tax liability.

Use your ISA allowance

Individual Savings Accounts or ISAs are one of the Government's main tax-efficient savings & investment allowances. Cash ISAs pay interest free of tax - ensuring you receive the full gross amount of the interest you earn. Stocks & Shares ISAs are also free of income tax, and in addition are free of Capital Gains Tax on the gains you make with your investment. The investment allowance is limited each year, and is lost if not used, so they are earlier started the more effective ISAs are.

Use your Capital Gains Tax (CGT) allowance

The annual CGT allowance is often overlooked - crystalising your gains and using your allowance each year can significantly reduce the overall tax you pay.

Move Savings to a spouse

If your spouse is a non-tax payer, consider moving savings into their name - interest will be paid at a lower rate of tax, and is particularly effective if you pay higher rate tax

Consider Offset Mortgages

If you have savings and a mortgage, consider using an offset mortgage. They offset interest earned on the savings against the interest you would pay on the loan. This can reduce the tax you pay each year, and reduce the overall term of your mortgage as monthly payments are being used to repay capital rather than interest.

Pension Planning

Pensions offer tax-efficient investment growth, but also income tax relief on contributions. This relief is being limited under recent legislation, but pensions remain effective tax-efficient savings vehicles.

Use Trusts & Wills

The effective use of Trusts and Wills can have a significant impact on the amount of inheritance tax you pay - currently 40% of assets over the nil rate band. Simple Trust solutions can save literally hundreds of thousands of pounds in unnecessary tax.