Tax Planning
With a myriad of different taxes and financial arrangements it is important to use the services of an experienced financial adviser who can help investors reduce their tax liabilities. After all, reduced tax tends to mean improved investment returns all other factors being equal. Please feel free to get in touch with us if you would like more information about our tax planning service and we will be happy to help. The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.
ISAs
You can currently invest up to £20,000 into a Stocks & Shares ISA each year, but this limit is lowered if you are also paying into other types of ISA. All profits made are exempt from Income Tax, Dividend Tax and Capital Gains Tax although ISAs may pay unrecoverable tax on income from stocks and shares received by the ISA managers.
ISA rules dictate that each individual can deposit up to £20,000 tax free into a Stocks & Shares ISA each tax year, but this £20,000 limit applies across all ISAs you invest into in a tax year. For example, if you have invested £10,000 into a Cash ISA and £4,000 to a Lifetime ISA since 6 April, you will only be able to deposit £6,000 into a Stocks and Shares ISA in the same tax year. ISA rules are also set to change in 2027.
Pensions
Pension planning can raise many questions:
- How do the pension rules affect inheritance tax, corporation tax and income tax planning?
- Can I still pass on my pension to my loved ones?
- Which income options should I consider in retirement?
- What is the most tax-efficient way to generate income in retirement?
- Am I making best use of all my personal and pension allowances?
We help clients answer these questions and others, in a way which is relevant to the client's own particular needs.
Investment Bonds
The taxation of dividend income means that UK Investment Bonds provided by Life Assurance companies can be highly tax efficient investments for taxpayers who wish to invest into equity funds and have already invested the maximum they are able to invest into Stocks & Shares ISAs. UK Investment Bonds can be particularly beneficial for high rate taxpayers.
Offshore Bonds
We arrange and manage Offshore Investment Bonds for clients who require investments where some taxes are not deducted at source. We have access to Offshore Bonds on the Isle of Man and in other offshore locations which have long-established and well-regulated financial services companies. Offshore Investment Bonds can be particularly tax efficient for investments held in some types of Trusts. We also use other types of Collective Investments when appropriate.
Inheritance Tax
Inheritance Tax Planning is about deciding how your assets will be distributed, whilst ensuring it is done in the most efficient way possible. We can provide detailed inheritance tax planning advice upon request. We are conversant with the types of Trusts and the Inheritance Tax Planning investment plans in the market.
Reducing Taxes
It is important to retain as much of your hard-earned profits as possible through the tax efficient use of different investment products. We have experience of the various types of products in the market.