Brexit – in the run up to the referendum

Brexit – what does it mean to your investments? Nobody is confident they know what the result of the EU referendum is likely to be on 23rd June and we won’t find out until the day after polling closes. This lack of predictability is causing uncertainty in markets and generating confusing headlines from bookies and pollsters, […]  Continue reading

What’s the truth about annuities?

“Let me be clear: no one will ever have to buy an annuity again” (George Osborne, Budget speech, 19th March 2014†).   This was a watershed moment for retirement income planning, as people can now draw down as much as they want from their pension pot from the age of 55. However it is worth noting that no-one […]  Continue reading

The power of diversity for retirement planning – retire tax efficiently!

Recently released figures from the Association of British Insurers (ABI) show that £5.9bn has been withdrawn since the pension freedom reforms came into force in April 2015. Although signs are that the numbers of people accessing their pension is beginning to reduce, this has no doubt provided a welcome tax boost for HM Treasury. But […]  Continue reading

What d’you need to know about the New State Pension? Ten Top Facts

Massive changes to the state pension have come into operation. If individuals reach state pension age after 5 April 2016 they will receive the ‘new state pension’. The full amount is £155.65 per week (2016/17) and up until 2020, it’s guaranteed to increase by the highest of price inflation, earnings growth or 2.5%, known as […]  Continue reading

What do dividend tax changes mean for trustees?

From 6 April 2016 dividends paid by UK companies and UK authorised mutual funds (i.e. Unit Trusts and OEICs) that are taxed as dividends (i.e. 40%+ invested in equities) no longer come with the non-reclaimable 10% tax credit. However, individuals will in future get a £5,000 dividend allowance, meaning dividends up to this amount will […]  Continue reading

LISA – a new arrival to the tax planning family

The new Lifetime ISA has created more choice when saving for retirement. Rather than act as a pension replacement, the new Lifetime ISA will offer additional tax relieved savings for young savers – to save for their first home or as a top up to their pension saving. But there’s a danger that some of […]  Continue reading

Budget 2016 – what this means for you

Budget 2016 It’s business as usual for pension saving as the Chancellor confirmed there will be no imminent changes to pension tax relief. And the introduction of the new LISA saving vehicle from April 2017 adds another attractive complementary option to the saving landscape. Taken together with cuts in CGT rates, further boosts in income […]  Continue reading

Pension Tax Relief stays untouched by Chancellor

Relief as pension tax stays untouched The Chancellor’s decision to defer any major changes to pension tax relief is a sensible one, with automatic enrolment at its peak and the pension freedoms still bedding in. The fact that the Government has conducted such an open debate on incentives to save has been useful though. Not […]  Continue reading

Pension Planning for business owners – Best way to extract profits

Pension Planning for business owners  Business owners are having to rethink the best way to extract profits from their company and pensions are most definitely in their thoughts. Changes to how dividends will be taxed from April could see a reduction in the spendable income they currently receive. A pension contribution could be the best […]  Continue reading

Discretionary Trusts

Discretionary Trusts The discretionary trust is a very flexible form of trust. In these trusts the trustees have discretion as to how, when, and for whose benefit to use some or all of the capital and income of the trust fund.  Beneficiaries or a class of beneficiaries are named in the trust deed and it […]  Continue reading

High earners – the race is on to maximise Pension funding

The impending Budget has ramped up the urgency for high earners to top up their pension funding. These individuals may see their annual allowance (AA) cut from £40k to £10k from April. But there is also likely to be an announcement on the outcome of the pension tax relief review on 16 March and there’s no […]  Continue reading

10 pension funding opportunities not to be missed

Pension Funding Opportunities The following contains the 10 pension funding opportunities not to be missed. Pensions remain the most tax efficient way to save for retirement. And the new freedoms have removed any lingering barriers to accessing funds and passing on unused funds on death. With further cuts to funding limits around the corner, maximising […]  Continue reading

The Residence Nil Rate Band – 10 Important things

The Residence Nil Rate Band – 10 important things You could save as much £140,000 in IHT when the family home passes to your children on death. The new IHT Residence Nil Rate Band (RNRB) will be introduced in April 2017. It is in addition to an individual’s own nil rate band of £325,000, and […]  Continue reading

Tax and Pension Legislative changes of 2015

Tax and Pension Legislative changes of 2015 The tax and pension legislative landscape rarely remains still for long. But 2015 heralded significant changes which could affect individuals, both now and in the future.  1. New pension income options Radical changes last April heralded possibly the biggest shake-up to UK savings and pensions ever. Defined contribution (DC) […]  Continue reading

ISA Allowance on Death – Additional Permitted Subscription

Introduction Since 3 December 2014, where a person holding an ISA dies and that person was married or in a civil partnership, the surviving spouse/civil partner is entitled to an extra ISA allowance equal to the value of the ISA(s) held by their spouse/civil partner (even where the spouse/civil partner does not actually inherit the […]  Continue reading

Dividend changes – what it means for investors

Next year will see major reforms to dividend taxation.  There will be both winners and losers when the £5,000 annual dividend allowance is introduced next April. Higher rate taxpayers could be better off by up to £1,250 a year (£1,530 for additional rate taxpayers) but some basic rate taxpayer could be worse off by as […]  Continue reading

Profit extraction – Dividends & Pensions

The tricky business of profit extraction – Dividends & Pensions The dividend changes will strengthen the case for business owners using pension contributions to extract profits from their company tax efficiently. Many directors of small and medium sized companies may be facing an increased tax bill next year as a result of how dividends will […]  Continue reading

How to reduce IHT liabilities

Gifting: How to reduce IHT liabilities Moving £10,000 out an individual’s estate could save their heirs £4,000 in tax. One of the easiest ways to reduce a future inheritance tax (IHT) liability is for individuals to give wealth away during their lifetime. Gifting can be an effective way of saving individuals’ heirs a significant IHT […]  Continue reading

How the 2015-2016 PIP rules work

2015-2016 PIP Rules. The Pension Input Period (PIPs) rules are to be simplified so that all pension funding is measured across the tax year from 6 April 2016. Aligning all PIP with the tax year makes it much easier for the vast majority of individuals to understand how much they can pay into their pension […]  Continue reading

Your top ten Budget questions answered

The Budget and Finance Bill have seen a significant surge in the number of queries we’ve been receiving. This special Budget Insight takes a look at your top ten questions to us and how this might affect your clients and the future advice they may need. Top ten Budget questions answered:- Hot topics have included; […]  Continue reading