With income tax rates at their highest for a generation, experts are urging higher-rate taxpayers to look beyond headline interest rates and focus on what they actually keep after tax.
He said that while most people compared investments based on their advertised return, the tax treatment can make an even bigger difference.
Mr Denley, CEO at London-based Oakham Wealth Management , said: “It's not just about what an investment earns.
It's about what you keep after tax. “With tax allowances having been reduced over recent years, improving your after-tax return has become much harder.
If you buy a gilt below its £100 redemption value and hold it until maturity, the uplift to £100 is free from Capital Gains Tax.
