With increased rates of income tax, capital gains tax (CGT) and various forms of indirect tax arising from last week's Budget, it is essential that investors make use of all available exemptions and reliefs to protect their investments, according to wealth experts at PricewaterhouseCoopers LLP (PwC) in the Midlands.

There are a number of ways that individuals can ensure their investments are tax efficient, including utilising pensions, Individual Savings Accounts (ISAs) and other less well known investments, according to David Sweeney, head of wealth advisory at PwC, Midlands. He says:

"The Emergency Budget announced by the government last week focused on cutting the budget deficit and inevitably this involved tax rises. Whilst the increase to CGT was less than feared, investors will none-the-less be looking to make to the most of all opportunities to minimise the tax burden on their assets.

"Where appropriate, individuals should use their annual CGT exemption each year. This is the amount of capital gain which investors can realise each year without paying capital gains tax and currently stands at £10,100."

However, investors should also be considering the range of tax efficient vehicles available to ensure they are maximising returns from their investment portfolio.

David Sweeney, head of wealth advisory at PwC, Midlands, continues: "Investors should consider tax efficient vehicles such as pensions and certain types of life assurance policies or less well known tax favoured investments, including the business premises renovation allowance. Married couples should also consider who is holding the investments to ensure exemptions are fully utilised and the lowest rate of tax is paid."

To assist private investors in the region in protecting their portfolios, PwC has put together the following useful pointers:

Married couples should ensure that they hold sufficient assets in each name, so that they can both minimise their exposure to tax. Interest on cash deposits should accrue in the name of a non or lower rate taxpaying spouse.

Where appropriate, individuals should use their annual capital gains tax exemption each year (currently £10,100), as this is a "use it or lose it" allowance.

All savers should ensure they invest as much as possible in Individual Savings Accounts (ISAs), as these are exempt from income tax and capital gains tax. The maximum contribution each tax year is currently £10,200.

Pensions remain a very tax efficient vehicle, particularly for those paying higher rates of tax, although they are likely to become less so for 50% taxpayers in future years.

High earners should consider enterprise investment schemes and venture capital trusts. These attract tax relief on contributions paid and the emerging benefits are free of capital gains tax, which is even more attractive following the Budget.

Higher rate taxpayers should consider the use of qualifying life assurance policies. In return for making savings on a regular basis, normally for a period of ten years, the proceeds at maturity are free of tax. However, these can be expensive and therefore investors need to ensure the charges do not outweigh the tax benefits.

Once all exemptions, reliefs and tax favoured vehicles have been utilised, higher rate taxpayers should consider vehicles which allow tax to be deferred.