Tax efficiency

Although Thesis does not give tax advice, our investment managers work with tax and financial advisers to maximise the tax efficiency of client portfolios. We also offer tax efficient investment services to clients who come to us directly and do not have other professional advisers.

Maximising tax efficiency may mean sheltering investments within tax wrappers such as individual savings accounts (ISAs) and self invested personal pensions (SIPPs). Investments held within these structures can be liable to lower or no income or capital gains tax (CGT) which can significantly affect investment returns, particularly over the long term. In our bespoke portfolio services we can arrange matters so that a client’s personal tax allowances are used in full each year, to optimise the tax benefits.

We can explore options, in our bespoke portfolio services, on the tax efficient timing of asset disposal, such as whether an immediate CGT liability is preferable to an inheritance tax burden in the future. We also assess whether poorly performing assets should be sold despite incurring tax liabilities, in order to reposition the portfolio into investments with more promising prospects.

In addition, in our bespoke portfolio services, we can time the necessary rebalancing of individual client portfolios (needed to keep the portfolios within their investment mandates) so as to minimise the impact of events that might trigger a tax liability.

So while we don’t offer tax advice, we can help to make investments tax efficient for individual clients, and support them in their tax planning.