Tax Terms

Tax-Efficient Investing

Definition

What is Tax-Efficient Investing?

Structuring legitimate investment choices to reduce unnecessary tax while following applicable law.

Example in practice

An investor compares the after-tax return of two products rather than choosing only the higher headline yield.

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Tax deducted at source from specified income payments before the recipient receives the balance.

Tax that may apply to gains from disposing of qualifying assets.

A public authority responsible for administering and collecting taxes.

The possibility of loss because broad market prices or rates move against an investment.

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