What are the best investments in UK that provide a strong income and also capital growth"

In order to deploy capital in the UK for tax-efficient income as well as capital growth, you only need the right balance between income producing assets with regular income plus those that will appreciate in time. Here are some of the smartest investments:

Real Estate: Property is still a bedrock of UK investment. Properties in high-demand residential areas, including London, Manchester, and Birmingham that could provide rental income, in addition to capital appreciation. Commercial real estate, especially in vibrant entrepreneurial clusters, may likewise yield perpetual rental income and long-term growth.

Investing in blue-chip UK companies that consistently pay dividends is another common way to earn income in the UK. Companies in more defensive sectors such as utilities, health care, and consumer staples generally offer stable dividends. Some FTSE 100 blue-chips can also provide capital growth over time.

Real Estate Investment Trusts (REITs): REITs are ways for investors to access property markets without the need for direct ownership of real estate. They provide an income stream in the form of dividends and future appreciation when property prices rise. While UK REITs invest primarily in commercial properties that include offices, retail spaces, and industrial units.

Infrastructure Funds: Infrastructure investments, including renewable energy projects, transportation, and utilities, offer stable income through long-term contracts and government-backed revenues. The value of these assets also tends to appreciate as the need for infrastructure increases.

Corporate Bonds: Invest in high-quality corporate bonds from established UK companies, providing steady interest returns and potential capital appreciation. Investment-grade bonds are safer, while high-yield bonds offer potentially higher returns, but increased risk.

Peer-to-Peer Lending — Investors lend money to individuals or small businesses through platforms like Funding Circle or Zopa in exchange for interest payments. Although riskier, they may offer greater income and potential capital appreciation.

Diversifying among these options balances the risks and rewards by providing consistent income while preparing for long-term growth. (This should always be done in consultation with a financial advisor where investments fit to your specific goals and risk profile.