Putting cash to good work

Charity can begin both at home and away with a tax-efficient charity account. The not-for-profit Charity Bank offers a five-year account that not only provides 5 per cent tax relief on a minimum investment of £1,000 but 2 per cent annual interest on top.

The relief is allowed because the money is saved in a Community Investment Tax Relief Account, which meets government criteria for such relief. The cash is lent to charities and disadvantaged communities at affordable rates. The 5 per cent tax relief equates to a return of 6.4 per cent a year for a basic rate taxpayer and 8.33 per cent for a higher rate payer. The 2 per cent extra interest can be kept or donated to charity - and topped up by as much as 28 per cent through the government's Gift Aid initiative. The money is tied up for the whole five years, although limited withdrawals can be made in years three, four and five. For details, see "www.charitybank.org.

Tax guidance


If you still have any unanswered questions about your tax concerns after reading this week's Cash tax special, accountants Grant Thornton has published a free guide that should help fill the gaps on a whole range of issues from the tax implications of selling a business and VAT to tax-efficient investing and pensions. The Essential Guide to Saving Tax can be found on "www.grant-thornton.co.uk.