If you haven’t started making investments, you better hurry and make investments in right areas. For this, it is best to start with a research first and then discuss about your investment options with a financial adviser.

Individual Savings Account (ISAs)
In ISAs, profits made from investments and interest earned on bonds is tax free. Due to such benefits, your savings and investments have the chance to grow even faster.

With the two types of ISAs available, you either have option of cash savings or stocks and shares. If you choose cash ISAs, you do not have to pay tax on the interest. However, if you choose to invest in funds, bonds or shares, there are certain risks involved in investment as they can fluctuate. Currently, the annual ISA allowance for 2015-16 is £15,240.

Pensions
Pension contributions are one of the best tax planning opportunities for your retirement so make sure you do not overlook this area. Employers usually provide workplace or occupational schemes ( also known as defined contribution scheme) where contributions are deducted from your salary which are free from income tax. If you do not use such schemes, there is also an option for self-invested personal pension.

Investing in pensions also helps your pension to grow virtually. On the other hand, you will not have the access to any funds in a pension until you reach the age of 55. If there is any money left in your pension when you die, it can usually be passed to your heirs which is also free of inheritance tax. Moreover, if you have died before reaching the age of 75, any withdrawals you make will be tax free.

Inheritance Tax
As Inheritance Tax planning is one of the easiest ways to save money, you shouldn’t neglect this chance. Although you may not be able to avoid inheritance tax completely, there are certain ways that can help you avoid some amount of tax. Making a gift to your spouse or partner, donating to charity, and giving cash gifts during your lifetime can possibly help you cut your tax bill. Thus, giving away your money through such ways will help to cut your Inheritance Tax.

Consider all these tax efficient investment options to ensure you make most of your savings and investments. In case if you do not feel confident of going through any of these options alone, you can always get advice from an independent financial adviser.