PERSONAL FINANCIAL PLANNING

“The rich hire lawyers and accountants for a reason – to pass the tax bill on to you.” George W Bush

  • We can advise you on how to structure your investments in a tax efficient manner and utilise your annual tax allowances to help you avoid paying unnecessary tax whilst also giving you the best advice to help you achieve your objectives.
  • Our unique investment proposition is structured so that any trading within the portfolio’s will not generate capital gains tax until the units are sold, making investing extremely tax efficient.
  • As your goals and priorities change over your lifetime your financial plan will be adjusted to incorporate them, making the process multi-staged and ever changing, developing solutions based on your own unique circumstances, the tax regime and the investment environment.

 

  • Investment Management
  • Inheritance Tax Mitigation/ Estate Planning
  • Trusts
  • Financial & Tax Advice
  • VCT/EIS/SEIS
  • Family Investment Companies
  • School Fee Planning
  • Pensions

If you would like to speak to us please book a phone call by clicking here

Our meetings are always free and carry no obligation

Pension Advice

Pensions are arguably the most tax-efficient savings mechanism available with contributions attracting tax relief at your marginal rate. Pension assets also benefit from tax-free investment growth and income. There are of course limitations to pensions such as your lifetime allowance for the total size of your pot and your annual allowance for yearly contributions. Some pensions are also excellent for inheritance tax planning (provided you have nominated the beneficiaries of your pension) as they will fall outside of your taxable estate.

Following the pension freedom rules you now have far more pension options available to you; and our pension consultants can help you to position your pension optimally… Our advisors can help you to consolidate historic schemes into a single pension with a suitable and coherent investment strategy. Pension rules have changed considerably in recent years and can now offer investors significant advantages for example some higher rate taxpayers can save as much as 60% tax on pension contributions and some pensions can be Inheritance Tax Free.

Our pension consultants will help you to plan effectively for retirement. Often this involves the consolidation of various old pension schemes into one manageable pension, which we will do for you.

Tax Efficient Investment

Ventures Capital Trusts (VCT), Enterprise Investment Schemes (EIS) and Seed Enterprise Investment Schemes (SEIS) are often grouped as they share the common goal of motivating investors to invest in smaller early-stage companies. This is done by offering investors attractive tax reliefs subject to annual investment limits and holding periods.  We can advise you on tax-efficient investments to suit your needs and your propensity for risk.

A Family Investment Company (FIC) is an alternative (and potentially more tax-efficient) structure to a family trust and a useful intergenerational wealth management vehicle, it is a company that invests rather than trades. A FIC can be used to transition wealth to the next generation whilst leaving the founders with control.  A company is established to hold and grow family investments with different share classes for senior and junior members of the family, with senior family members often contributing to and controlling the FIC acting as its directors.  A FIC is governed by company law as opposed to trust law, the benefits of FICs as follows:

  • Lifetime gifts into trust above £325,000 generally attract an immediate 20% Inheritance Tax Charge called a Chargeable Lifetime Transfer (CLT).  However, this tax charge does not apply to gifts of shares in a FIC as those gifts will, if made to an individual, be potentially exempt transfers (PETs) which no immediate charge is payable and starts the seven-year survivorship rule timer.
  • Income from assets within a trust is subject to the additional rate of tax. However, within a FIC corporation tax rules apply and companies are currently not subject to tax on UK dividend income whilst other income is subject to tax at currently 19% (25% from 6th April 2021), which is significantly less. Thus, income can be accumulated and reinvested tax-efficiently within the FIC.
  • If a FIC owns shares within the founders, current company income tax advantages can be achieved by paying a dividend directly into the FIC.
  • FICs are an efficient mechanism for holding property, by using a FIC, it is easier for individuals to transfer their property portfolios to the next generation. The FIC can be used as a succession plan to provide the founders Children/Grandchildren with an income stream. Further, holding leveraged properties within a FIC is highly attractive as mortgage interest can be fully expensed against revenue.

Tax-Efficient School Fees Advice

School fees have increased significantly above the rate of inflation in the last couple of decades as schools compete to install Olympic standard facilities.

The good news is that within personal financial planning there are tax efficient ways to pay these astronomical bills and we can help you to do this, whilst we also do it ourselves.

Inheritance Tax Mitigation

Inheritance tax is often the largest tax we will ever generate at a staggering 40% of the net estate above the Nil Rate Bands. Many people feel this is unfair as they have worked hard to build their wealth often from post-tax income. However, there are multiple strategies that can help you to potentially reduce your inheritance tax bill and keep your wealth within your family.  Estate planning can be complex with the high level and ever-changing rules and regulations and  with there being multiple mitigation strategies with differing levels of risk and costs. However, we can work with you to create a succession plan which is best suited to you and your family’s circumstances.