The end of tax year is near. creative. wealth management. spring quarterly newsletter

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "The end of tax year is near. creative. wealth management. spring 2015. quarterly newsletter"

Transcription

1 creative wealth management quarterly newsletter spring 2015 The end of tax year is near

2 6 th April Approaches Fast When the final whistle is blown there is no time for further kicks or headers on a football pitch. Whatever the protests of the players, the end is the end! The end of the tax year is similar with many allowances coming to a full stop. So, while it makes sense to plan your financial affairs on a regular basis, with deadlines such as the end of the tax year, it is important to carry out a review to ensure that valuable planning opportunities are not lost. In addition to routine changes such as adjustments to thresholds and allowances, e.g. the personal allowance and pension rates, there can also be changes to the tax rules themselves. In this case, the end of this tax year heralds the introduction of new pension tax rules. These changes will give more freedom of choice and they are to be broadly welcomed but there are tax implications and new planning issues to be considered. One major point is the new inheritability of pensions, with the scrapping of tax on passing assets before age 75. Articles in this issue: How to reduce your income tax Pension tips ISA Allowances, including Junior ISAs Capital Gains Tax reminders Inheritance tax forward planning ideas This newsletter covers a number of key planning points to help you consider your own position. If you would like advice about any of the planning points covered or indeed something not covered in this newsletter, please do get in touch. Craig Harrison FPFS IMC Head of Creative Wealth Management PS I m pleased to announce that we have re-designed our website with a view to providing more informative content and useful planning tools. Please visit at where you ll find refreshed content and an archive news service. In addition to this newsletter, the website also has the following articles which may be of relevance to your end of tax year planning: One Man Block Transfer: Sheltering Valuable Protected Benefits (Whilst Benefiting From The New Flexibility And Choice) Pensions Unlocked - Good News for Pension Death Benefits

3 How to reduce your income tax Andrew Clark Wealth Management Consultant Making the most of our income has become commonplace since the beginning of the credit crunch in Making sure we have as much income as possible by ensuring we are not over-paying income tax should be just as commonplace. With careful planning it is possible to minimise the amount of income tax you might otherwise have to pay. Key Issues: Reduce or eliminate the amount of child benefit charge you pay, by keeping your adjusted net income below 50,000 per year. Preserve your age-related personal allowance if you are aged 65 and over, by keeping your adjusted net income below 27,000 for the 2014/15 tax year. Preserve your personal allowance where adjusted net income is in excess of 100,000 per year. Reduce the amount of higher and additional rate tax you pay. Maximise Your Yearly Individual Savings Account (ISA) Allowance ISAs With no income or capital gains taxes on investment growth and income from ISAs, they are very appealing investment vehicles and provide even greater value if you are paying higher and additional rates of income tax. For the 2014/15 tax year, the ISA allowance is 15,000, so a couple could invest 30,000 between them. For the 2015/16 tax year, this allowance will be increasing to 15,240, giving a maximum of 30,480 per couple. By maximizing ISA allowances, investment holdings which would otherwise suffer the dragging effect of tax, can grow completely tax-free. As an added benefit of holding money in ISAs, the rules on inheritance have improved. When an ISA holder dies, it is now possible for their surviving spouse or civil partner to be able to inherit the tax benefits of their ISA. This will work by taking the value of the deceased s ISA at death and adding it to the survivor s own ISA allowance. For example, if your spouse dies in March 2015, leaving an ISA valued at 22,000, you will be entitled to an ISA allowance of 37,240 in tax year 2015/16. Spouse s will be able to claim this additional allowance from 6th April This is a new change to ISAs as a result of the budget in Invest For Growth Through Unit Trusts or OEICs Income on Unit Trusts and OEICs (Open Ended Investment Companies) whether paid in the form of dividends, interest or a combination of both is taxable. This is the case whether the income is distributed or accumulated. However, you can reduce this tax by limiting the income. If the collective investment scheme focuses on investing for capital growth, you won t have to pay tax on the gains built up. Investing like this also lets you use your yearly capital gains tax (CGT) exemption if and when you choose to cash-in your investment. The CGT exemption for the 2014/15 tax year is 11,000 and it will be increased to 11,100 for the 2015/16 tax year. Only gains above the threshold are subject to tax.

4 The amount of capital gains tax you pay will depend on your total taxable income for the year. Where gains fall below the higher rate income tax threshold, then the rate of CGT is 18%. Where gains exceed this threshold, the rate is 28%. But, even at 28%, the higher rate of capital gains tax compares favourably to the higher rates of income tax of 40% and 45% (higher rate and additional rate respectively). By default, it therefore makes sense to invest for capital growth rather than income. For married couples it also makes sense to consider using both of your CGT allowances when it comes to cashing-in investments. Similar to ISAs, you each have your own individual CGT allowance which would otherwise be lost. This is very much a case of use it or lose it. Avoiding Income-Producing Investments With investment bonds you won t have the potential for any extra taxable income until a chargeable event occurs. The lower capital gains tax rate may make a collective investment seem like a better option than an investment bond, however, investment bonds may represent a more attractive tax home for reinvested income. Whenever you cash-in an onshore investment bond, you get a 20% tax credit for the tax paid within the life fund. Consequently, a basic rate taxpayer would not be required to pay any further tax as a basic rate of tax has already been paid within the bond. In contrast, if you are a higher rate or additional rate taxpayer, you would have to pay further income tax on any chargeable gain after claiming top slicing (a technique to help mitigate this for some individuals). Investment bonds can also be used to provide a top-up to your income, as you can make tax effective withdrawals using your yearly 5%pa allowance. Such withdrawals do not trigger any immediate tax charge nor do they affect your entitlement to age or personal allowances. Individuals Earnings Over 100,000 If you earn over 100,000 there may be little you can do to help protect your personal allowance. However, if you receive investment income which tips you over the 100,000 threshold, then you could consider reinvesting into capital growth oriented investments, investments that defer tax (for example, investment bonds), or investments that produce taxfree income (e.g. ISAs). You could also consider making a pension contribution. This can be done up to the current annual allowance of 40,000. In addition, you can also take advantage of Carry Forward which can help mop-up unused annual allowances for the three previous tax years. Maximise Allowances For Couples If you are married or have a civil partner, you could consider splitting your investments between both of you. This helps make maximum use of your allowances and could also lower your individual tax rates. If you own your own business, you could also consider paying an income for both partners through salary, dividends or profit share. Both dividends and profit share are still legitimate options as the Government decided not to legislate against this form of income shifting. However, you must still take into account rules on appropriate commercial arrangements. You can also make gifts to a registered charity or a pension contribution to reduce your adjusted net income. The table below highlights the key thresholds for reducing adjusted net income in order to preserve valuable benefits: Avoid Child Benefit Charge 50,000 Preserve Your Age Allowance 27,000 Preserve Your Personal Allowance 100,000 One of the best ways of reducing tax is to make a contribution into a registered pension scheme or to a registered charity. When you do this, you are able to extend your basic rate and high rate threshold. How You Can Put Yourself Into A Lower Tax Bracket One of the best ways of reducing tax is to make a contribution into a registered pension scheme or to a registered charity. When you do this, you are able to extend your basic rate and high rate threshold. The example below illustrates how this would work. Keep Your Adjusted Net Income Below

5 Example: Reducing income tax for a higher rate taxpayer Edward has taxable income of 120,000 in the current tax year and so would normally lose his personal allowance. After discussing the matter with his adviser, Edward decides to make a pension contribution of 20,000. The table below demonstrates the before and after position of this: No Pension Contribution A saving of 12,000 With the current tax rules, individuals who earn over 100,000 lose their personal allowance at a rate of 1 for every 2 they earn over 100,000. Income Assessable For Tax 120, ,000 Pension Contribution 0 20,000 Personal Allowance 0* 10,000 Taxable Income 120,000 90,000 Pension Contribution Basic Rate 6,373 ( 31,865 x 20%) 6,373 ( 31,865 x 20%) Higher Rate 35,254 ( 88,135 x 40%) 23,254 ( 58,135 x 40%) Summary Checklist 4 Avoid a child benefit charge by using pension contributions where your net adjusted income exceeds 50,000 per year. 4 Preserve your personal allowance by making a pension contribution where your net adjusted income exceeds 100,000 per year. 4 Maximise your tax savings by making use of your ISA allowance in full every year. 4 Try to invest for growth and look for investments which don t generate income. 4 If you are married, consider splitting your investments in order to minimise tax. 4 Upon death, remember that you can now use your late spouse s ISA value towards your own ISA allowance. Total Tax 41,627 29,627

6 Pension tips Joe Kennedy Wealth Management Consultant Use your annual allowance and carry forward amounts A limit is set on the amount that can be paid into a tax relievable pension each tax year. This limit is called the annual allowance and it is currently 40,000. But, carry forward allowances up to and including the 2013/14 tax year remain at 50,000. This gives you the opportunity to maximise your pension contributions using these higher amounts. For example, if you earn 90,000 in this tax year and paid no pension contributions during the last tax year, you would be able to carry forward an allowance of 50,000 from last year and add that to this year s allowance of 40,000, allowing you to gain tax relief on the full 90,000 contribution. This scenario stretches the point for most, but, carry forward reliefs can be useful in years when you have money to invest, and of course, they boost your retirement prospects whilst also reducing tax. You cannot contribute more to a pension than your earnings (without paying tax), so, if your combined carry forward and current year s allowances exceed your earnings, it would only make sense to pay in up the level of your earnings. It is important to note however, that this restriction doesn t apply to employer contributions. This means employers can pay contributions which far exceed a single year s taxable income, allowing the best opportunity to take full advantage of the carry forward opportunities. Naturally, this strategy is attractive for ownermanaged businesses with surplus retained profit to invest. Example: Joanna and Wendy set up their business 10 years ago. Since then, the company has paid a modest contribution of 10,000 a year into personal pension arrangements on their behalf. With the business now well established and making good profits, they want to maximise their pension contributions. Before using their allowances 2011/ / / /15 Paid in 10,000 10,000 10,000 10,000 Allowance 50,000 50,000 50,000 40,000 Balance 40,000 40,000 40,000 30,000 The solution Their adviser recommends they both set up a new arrangement to mop up their unused annual allowances. Each new arrangement has a default pension input period set to maximise the available tax relief, and, with the company making payment, both of them benefit from a one-off pension contribution of 150,000. Points to Note 1. Always use the current year s allowance first, 2. You can carry forward unused allowance from the previous three tax years, 3. You must use the unused allowance from the earliest year first. 4. You must be a member of a registered pension scheme during the carry forward year to benefit from carry forward of unused annual allowance for that year. 5. Companies making a large pension contribution to gain corporation tax relief must be able to show the expenditure is wholly and exclusively for business purposes. Transfer pension benefits with protected elements before 6 April 2015 If you have a protected pension age (a specially allowed retirement age), a scheme-specific lump sum protection of more than 25% (an entitlement to more than a quarter of your pension fund as a tax-free lump sum), or both, there is often only a choice of: Taking benefits from the existing scheme with limited income options, or Transferring to a pension offering drawdown and losing protected tax-free cash. This means that one or other benefit is lost. However, due to a temporary HMRC extension, it is possible to transfer with protection providing the transfer is done before 5th April This applies to transfers up to and including 5 April 2015 where a provider treats a single member

7 transfer as a block transfer. The protections apply to the transferred rights. Conditions apply and time is running out so please enquire immediately if this is of interest. Maximising pension saving before flexi-access drawdown arrives in April 2015 Available from 6 April 2015, flexi-access drawdown allows you to take up to 25% tax-free cash with unrestricted access to income. Also from then, the new money purchase annual allowance of 10,000 applies to anyone taking an income from flexi access drawdown. This is a lower annual allowance capping pension contributions at a lower rate in order to cap tax benefits for those already drawing down on their pensions. With this reduced cap in mind, it s worth considering maximising contributions before taking benefits flexibly from 6 April Maximising the tax position for a small business owner With the introduction of flexible access drawdown pensions from 6 April 2015, the option of taking profits by paying them into a pension, becomes considerably more attractive for a small business owner. Example: George, aged 60, owns a small business. He is planning to sell it in the summer of 2015 and retire. After a successful year for his business, George has 100,000 profit to take by the end of March He can take this as a salary, dividend or a pension contribution. Method of taking profit Amount after tax Overall tax rate Dividend 60,000 40% Salary 50,967 49% Pension 100,000 0% This example is based upon: a company with 100,000 available before tax; corporation tax at 20%; George s salary for 2014/15 is 45,000; The company pays National Insurance on George s salary at 13.8%; George pays National Insurance at 2% on his salary above the Upper Earnings Limit ( 41,865). George will be able to take his pension on or after 6 April 2015 through flexiaccess drawdown, so he doesn t have any restrictions on accessing the benefits. If George chooses to take the whole fund and paid 20% income tax in that year, the effective rate of deduction would be only 15% ( 25,000 tax-free plus 75,000 net of 20% = 85,000). If tax on the income was at 40% instead, the effective rate of deduction would still only be 30%. This clearly compares favourably with both dividend and salary. It is also worth noting: Taking 100,000 as a dividend or salary would lead to George losing his personal allowance as his total income will be well over 120,000. This is a cost of 2,000 (20% of 10,000). The pension fund is exempt from UK taxes on investment income and capital gains (some investment income is received with tax credits or after tax deductions which cannot be reclaimed e.g. 10% tax credit on UK dividends). If George dies before the age of 75, his pension fund can pass to a beneficiary free of tax up to the lifetime allowance (after age 75 and tax applies at the beneficiaries marginal rate). If George takes the money as a dividend or salary, it will normally be part of his estate when he dies unless he has spent or gifted the money. His estate may have to pay inheritance tax at 40% on this money. Taking advantage of new pension flexibility before 6 April 2015 If you are currently using Capped drawdown, your provider may or may not accept further contributions after April If they will this is good news as you can designate funds into the same account after 5 April 2015 and the reduced money purchase annual allowance won t apply. It may also be worth starting a Capped Drawdown plan before April. This would need careful, and urgent, consideration but in the right circumstances, it could enable flexible retirement without the reduced annual allowance of 10,000pa. Example: Helen is aged 60 and still working full time. She pays 5,000 a year into her employer s money purchase pension scheme. Helen s employer contributes 10,000 a year on her behalf and she also pays 2,000 a year into a personal pension, which has a current value of 250,000. Helen is planning to cut her working hours when she turns 62 before finally retiring at age 66. To do this, she will need to replace some of her income by drawing an income from her personal pension. Helen wants to make the most of the new flexibility and doesn t want to consider buying an annuity until she is in her seventies. The solution Helen could designate a minimum amount - say 10,000 - to a capped drawdown arrangement before 6 April She can then take the tax-free cash without drawing an income. By establishing the capped drawdown, she can take a higher level of income (within the capped drawdown limits) through additional fund designation when she s 62 without triggering the reduced money purchase annual allowance. This means she and her employer can continue contributing 15,000 a year to the money purchase pension scheme without any annual allowance charge. Helen can also continue paying 2,000 a year into her personal pension.

8 ISA allowances, including Junior ISAs Mike Greely Wealth Management Consultant Individual Savings Accounts or ISAs are simply tax-free or tax-efficient products for your savings and or investments. You cannot carry ISA allowances from one tax year to another so the first point of order is making sure you use your allowances. Each tax year, you get an ISA allowance which sets the maximum that can be saved within the tax-free wrapper from April to April. The old ISA system used to limit how much you could put into each pot - you d either get half your allowance in cash and half in shares, or you could choose to put it all in shares. But, from 1 July 2014, the rules were relaxed and although you still have a limit to the amount you can save ( 15,000 for 2014/15 and 15,240 from 6 April 2015), you now get to choose how you split this between stocks & shares and cash holdings. You can use the whole amount for stocks & shares, the whole amount for cash or a mixture. You must save or invest by 5 April, the end of the tax year, for it to count for that year. It can take a while to process applications so don t leave it until the last minute! Any money which stays within the taxfree ISA environment will continue to earn interest and continue to benefit from the tax-free environment until you withdraw the money. The gains (interest or investment returns) made in each year are also tax-free. This means ISAs can build into a very useful and substantial element of a portfolio. Previous and Current Allowances:

9 7,000 from 1999 to ,200 until 2010, 10,200 for 2010/11, 10,680 in 2011/12, 11,280 for 2012/13, 11,520 for 2013/14 15,000 for 2014/15 15,240 for 2015/16 plus ISAs for your Children There s a Junior ISA (JISA) which is just like the adult version, but with a lower limit of currently 4,000. JISAs allow you to save tax-free on behalf of a child or children. You can save or invest in stocks & shares, in cash any mix of the two and the same tax benefits apply. Your child can t touch the money until they turn 18. Until that time, the account is held in the child s name but is opened and managed by you. The child can take control at 16, but won t be able to access the money until aged 18. At this age, the money is theirs and no one else will be entitled to any amounts invested or any growth. JISAs replaced Child Trust Funds when they were scrapped for new savers on 3 January This means JISAs are only available to children born on or after that date, or children aged under 18 but born before 1 September 2002, when the CTF was introduced, and so never had the chance to contribute to a CTF. Capital gains tax How ISAs Can Help You may have to pay capital gains tax on any capital gains realised from your investment in collective investment schemes, such as Unit Trusts. The current annual exemption for capital gains tax is 11,000. For gains over that amount, you need to take into account your taxable income: If your taxable income plus capital gains falls below the higher rate tax threshold you will pay tax on the gain at 18%. If your taxable income plus capital gains is more than the higher rate tax threshold you will pay tax on the gain at 28% If you are fortunate enough to have a large portfolio of investments, which are loaded with potential capital gains tax then there is a solution to utilise your capital gains tax allowance each year (currently 11,000 for tax year 2014/15) to reduce this liability. You can use bed and ISA planning to cash in an investment and reinvest in an ISA. This could benefit you by slowly and taxefficiently reducing the gain and moving it into an ISA, which is free of any future capital gains tax. Some ISA FAQs Who can open an ISA? You need to be a UK resident aged 16 or over to open a cash ISA, or aged 18 or over to open a stocks & shares ISA. You can t open an account together with someone else, or on behalf of someone else. But couples can and should consider maximizing both of their allowances. How can you withdraw money? A common mistake is to think an ISA needs to be held for a set length of time in order to reap the tax-free benefits. That is not the case. However, it is worth watching out for policy or account restrictions. Cash ISAs often offer improved rates but only for fixed periods, which if not exhausted will usually mean a penalty is imposed. Otherwise, money can be taken out taxfree at any time. It is also worth noting that once ISA money is withdrawn, it can t be returned, i.e. without using your current year s allowance. Can you change provider? Yes. You can change provider. This may be beneficial for a better cash rate or to change to a different type of investment holding. But, your existing ISA provider may offer a choice so you may be able to switch accounts without necessarily changing provider. Transferring between approved ISA products does not count as a withdrawal. There may be exit or set up costs to bear.

10 Capital Gains Tax reminders Jason Coppard Wealth Management Consultant For individuals with un-realised or potential future gains, it s worth considering an endof-year capital gains tax planning exercise. This will help your long-term tax efficiency. Maximising the annual exemption You have an annual exemption for capital gains tax. For the 2014/15 tax year this is 11,000. You cannot carry forward the capital gains tax exemption. So, if you don t use it, you lose it. With that in mind, you should consider cashing in investments with potential gains before the end of the tax year. That way, any gains may be covered entirely or to some extent by the annual exemption. Maximising tax opportunities for married couples and civil partners Married couples and civil partners pay tax separately on their capital gains. Each partner has their own capital gains tax exemption. This lets you realise gains of up to 22,000. To maximise tax planning opportunities, married couple or civil partners should consider transferring assets from one spouse or civil partner to the other. By doing this, they can transfer any un-realised capital gain in the transferred asset to the other partner without triggering a chargeable gain. Please note that this tax neutral no gain/no loss disposal is only available between spouses and civil partners who live together. It gives you the chance to use the capital gains tax exemptions and basic rate tax bands for both partners. Example: Using both partners allowances John is a higher rate taxpayer and his wife Jenny pays tax at the basic rate. John is planning to cash in his investment portfolio. The potential gain of 30,000 will be taxable like this: John s liability as a higher rate taxpayer Gain 30,000 Less annual exemption 11,000 Taxable at 28% 19,000 Capital gains tax payable 5,320 However, with careful planning, John s adviser helps him substantially reduce this liability. John keeps enough of his portfolio to use up his annual exemption. He then makes an outright gift of the balance to Jenny. By doing this, they can reduce their tax bill like this: John s liability as a higher rate taxpayer Adopting this strategy saves John and Jenny 3,880 in tax payments. However, to be effective, David must unconditionally gift his portfolio to Jenny. With such planning, you need to be careful you don t fall foul of capital gains tax anti- avoidance rules. These apply if the recipient returns any of the gifted investment portfolio to the original owner. To make sure John realises the gains properly, he must not personally reacquire the same investment within 30 days of disposing of it (known as bed and breakfast ). To maximise tax planning opportunities, married couple or civil partners should consider transferring assets from one spouse or civil partner to the other. Jenny s liability as a basic rate taxpayer 11,000 Gain 19,000 11,000 Less annual exemption 11,000 0 Taxable at 28% for David Taxable at 18% for Jenny 8,000 0 Capital gains payable 1,440

11 Reducing a tax bill using pension contributions If you have total income close to the higher rate tax threshold ( 41,865 for 2014/15) and face paying capital gains tax at 28% on a significant part of any taxable capital gain, you should consider making a personal pension contribution. This will increase the basic rate tax band and could mean that tax is paid on the gain at a lower rate. Example: Adam has total income of 41,865, which in the current tax year is the starting point for paying higher rate tax. After deducting the 11,000 annual exemption, he has a taxable capital gain of 10,000. As a higher rate taxpayer, Adam will pay tax at 28% on his taxable capital gain of 1 0,000. Adam s liability as a higher rate taxpayer Gain 21,000 Less annual exemption 11,000 Taxable at 28% 10,000 Capital gains tax payable 2,800 The solution Adam can extend his basic rate band to 51,865 by making a 10,000 gross contribution to his personal pension. This is made up of an 8,000 net contribution by Adam and 2,000 in tax relief from the government. By doing this, his taxable capital gain plus his income remains within his extended basic rate tax band ( 41, ,000 = 51,865). This means he will pay capital gains tax at the lower rate of 18%. Adam s liability as a basic rate taxpayer Gain 21,000 Less annual exemption 11,000 Taxable at 18% 10,000 Capital gains tax payable 1,800 By making a personal pension contribution of 8,000 (worth 10,000 gross), Adam has reduced his tax bill by 1,000. Using investment losses to advantage If you have made losses on investments, you could look into using the losses to offset capital gains. For example you can carry forward losses and use them to reduce the current year capital gains to the current annual allowance of 11,000. You can still carry forward the balance of losses to be used in future years. Example: Jason has capital gains above the annual exemption and wants to reduce the capital gains tax due. This is his situation without offsetting it with losses: Jason s capital gains Capital gain 16,000 Less annual exemption 11,000 5,000 The solution Jason has both current year losses and losses carried forward from previous years he can use to offset this year s gains. Jason s offset capital gains Capital gain (2014/15) 16,000 Less losses (2014/15) 4,000 Net gain (2014/15) 12,000 Less annual exemption 11,000 Gain after exemption 1,000 Brought forwards losses 10,000 Losses carried forward to 2015/16 9,000 You must use the annual exemption against the net gains for 2014/15 before using any carried forward losses. In this example, Jason will only use 1,000 of the 10,000 losses carried forward. This leaves 9,000 to carry forward to the next tax year and beyond. Capital gains tax planning can be quite holistic and requires a number of factors to be considered. If you are considering action for this tax year please get in touch as soon as possible.

12 Inheritance tax - forward planning ideas to reduce your bill David Bull Wealth Management Consultant Inheritance Tax (IHT) is an issue concerning more than just the very wealthy. Simply with the increase in property values over the last few decades, many of us now fall into the IHT bracket. Add to that, the freezing of the nil rate threshold held at 325,000 and it is clear many will continue to be affected. Upon your death the value of your estate will be assessed by HMRC. All your assets i.e.property, savings, investments, businesses and so on will be totalled up. Any debts you have will be deducted and the balance determines if your estate has to pay IHT. At present, the nil rate threshold (the amount you can leave behind without being liable for tax) is 325,000. Anything over this is taxed at 40%. If you leave 10% or more of your estate to charity, this rate drops to 36%. The nil threshold rate of 325,000 has been frozen until 2017 at which stage the Government will decide if it should be changed. A married couple or civil partnership can combine their nil rate threshold meaning they can leave 650,000 tax-free, see below on allowances for more details. If your estate is AND WILL STAY under 325,000 (or 650,000 between yourself and your spouse) in value, after any debts are deducted, then you don t need to worry about IHT in the first place. Of course, it is worth thinking about the growth in value that could occur before you die before discounting taking any action. But if, for example, you die and leave behind assets valued at 750,000, your estate pays nothing on the first 325,000. The remaining 425,000 is taxed at 40%, giving HMRC a total of 170,000 in tax. Inheritance Tax is one of the easier taxes to reduce through basic planning, yet few people take the time to deal with it. More often than not we leave it too late, gifting HMRC our assets instead of our loved ones. Making a few simple changes now can save your estate, and your loved ones, thousands. Why spend your life being savvy about your finances only to pay thousands in taxes upon your death because you don t want to think about what is unavoidable? Read on for some simple tips to save thousands. 1. Make a Will Making a will is the only way to control what happens to your assets after you are gone. The mere process of making a will gets you thinking about the best way to pass on your estate. Creative Wealth Management can recommend a will writer if you do not have one of your own. 2. Leaving your estate to your partner When you die, any amount you leave to your spouse or civil partner is exempt from inheritance tax, as long as they reside in the UK. It also worth noting that your nil allowance of 325,000 is transferable between you and your partner upon your death. This means that if you have left an estate valued below the 325,000 threshold, the balance of what you have not used is transferred to your partner. So as a couple, you jointly have an inheritance tax free threshold of 650, Make use of Allowances This is quite simply giving money away tax-free. Using up your allowances each year is a simple, tax efficient method of reducing your estate s IHT bill. Annual Tax Free Allowances Everyone has an annual tax free gift exemption of 3,000. This means you can give away up to 3,000 each year, tax free. You can carry forward your unused allowance by one year, meaning you can use this year s allowance in the next tax year. Or you can use up last year s allowance this year, if you did not use it last year. Doing this means it is possible to give away 6,000 tax free in a single tax year. Small gifts Allowance. You can also give up to 250 to any individual each tax year, without being liable for IHT. You can repeat this gifting for as many different individuals as you want. So, for example, you can give each of your children/ grandchildren 250 a year tax free. These gifts do not count towards your annual allowance of 3,000.

13 Gifts from Income. Inheritance tax is a tax on what you own, your assets. It does not apply to your income. If you have earnings from work or a pension, giving money away from this should be tax free. As long as the amounts you give away do not reduce your standard of living, these gifts should have no bearing on your IHT exemption or your nil threshold. You will need to keep detailed records in order to prove that these gifts have, firstly, come from your income, and secondly, that they have not negatively affected your lifestyle. Marriage Gifts. Gifts on the occasion of marriage can be given tax free. 5,000 by parents; 3,000 by grandparents and 1,000 by anyone else. Gifts to dependents. You can make tax free gifts to your spouse and other family members who rely on you for support, such as ex- wives/ husbands/civil partners; children under 18 or in full time education; other family members who are dependent on you. If you make gifts in order to reduce your IHT bill, then you need to keep records of all gifts- when you gave them; to whom and for how much. Your executor will need these in order to work out you estate s tax bill. Be sure to keep these records with your other important accounts so your executor can find them. It is also worth noting that for something to be deemed a gift, you have to give it freely and you can not benefit from it. So, for example, you can not give away half of your home as a gift while you continue to live in it. 4. Potentially Exempt Transfers (PETs). This is where forward planning can really make a huge impact. Any money/ asset you give away greater than the annual allowance will remain viewed as part of your estate for 7 years. If you die within those 7 years, the asset/money will be counted against your nil rate threshold and the recipient may have to pay IHT. However, if you survive for longer than 7 years after the transfer, IHT is not payable. These situations are called Potentially Exempt Transfers (PETs). If you transfer a substantial gift to an individual, it is possible for them to take out an insurance policy to cover the IHT that would be owing if you died within 7 years of the transfer. 5. Donations to registered UK charities and political parties are IHT exempt. Donating to your favourite charity is tax free, both while you are alive, or through your will. It can actually reduce the rate of IHT your estate pays after your death. If you will 10% or more of your estate to charity, IHT will be applied to your estate at a rate of 36% instead of 40%. 6. Trusts. Using trusts to reduce your IHT bill and provide for your loved ones can be extremely tax efficient. Trusts are especially helpful at providing for more vulnerable dependants; mitigating against careless spending by recipients and protecting assets in the event of divorce, bankruptcy, etc. Setting up trusts is quite complicated- this is one area which you should not D.I.Y. Get advice from qualified professionals. For more information please contact us. 7. Enjoy Life! With Creative Wealth Management helping to protect and grow your wealth we do hope you enjoy retirement. Inheritance tax is avoidable with forward planning and we highly encourage action. Of course, we also wish you a long and happy life of your own. All the information in this document is for general guidance only and does not constitute specific investment advice. Any regulated advisory services will be provided by suitably qualified advisers. Creative Wealth Management is a trading style of Creative Benefit Wealth Management Limited (company no ), which is authorised and regulated by the Financial Conduct Authority, reference number Both companies are registered in England and Wales. Their registered office is 125 London Wall, London, EC2Y 5AL. London: 2 Cherry Orchard Road, Croydon, Surrey, CR0 6BA. Tel: Fax: Bristol: 1 Friary, Temple Quay, Bristol, BS1 6EA. Tel: Fax: Edinburgh: 152 Morrison Street, Edinburgh, EH3 8EB. Tel: Fax: Leeds: Princes Exchange, Leeds, LS1 4HY. Tel: Fax: Manchester: 53 Fountain Street, Manchester, M2 2AN. Tel: Fax: Online:

Helping your loved ones. Simple steps to providing for your family and friends

Helping your loved ones. Simple steps to providing for your family and friends Helping your loved ones Simple steps to providing for your family and friends Contents 01 How can I take control of who gets what? 02 Inheritance Tax 04 Do you know how much you re worth? 06 Making lifetime

More information

2014/15. Year End. Tax Planning A GUIDE TO WITH CAREFUL TAX PLANNING, IT MAY BE POSSIBLE TO MITIGATE TAXES OR MAKE THEM MUCH MORE MANAGEABLE

2014/15. Year End. Tax Planning A GUIDE TO WITH CAREFUL TAX PLANNING, IT MAY BE POSSIBLE TO MITIGATE TAXES OR MAKE THEM MUCH MORE MANAGEABLE FINANCIAL GUIDE A GUIDE TO 2014/15 Year End Tax Planning WITH CAREFUL TAX PLANNING, IT MAY BE POSSIBLE TO MITIGATE TAXES OR MAKE THEM MUCH MORE MANAGEABLE Atkinson White Partnership Regency House, 51 Coniscliffe

More information

Life Assurance Policies

Life Assurance Policies clarityresearch Life Assurance Policies Summary 1. Some life assurance policies are not taken out as a means of purely providing life insurance (for this subject, please see the Research Notes in the Protection

More information

Preserving your wealth for future generations. Towry s Guide to Estate Planning

Preserving your wealth for future generations. Towry s Guide to Estate Planning Preserving your wealth for future generations Towry s Guide to Estate Planning About Towry We are one of the UK s leading wealth advisers and specialise in providing high quality, expert fi nancial advice

More information

TD Direct Investing A Guide to SIPPs

TD Direct Investing A Guide to SIPPs TD Direct Investing A Guide to SIPPs Introduction If you are considering investing for retirement, there are a number of ways to approach it. One way is to embark on the do it yourself (DIY) self investment

More information

2014/15. Year End. Tax Planning. With careful tax planning, it may be possible to mitigate taxes or make them much more manageable

2014/15. Year End. Tax Planning. With careful tax planning, it may be possible to mitigate taxes or make them much more manageable FINANCIAL GUIDE A GUIDE TO 2014/15 Year End Tax Planning With careful tax planning, it may be possible to mitigate taxes or make them much more manageable A GUIDE TO 2014/15 YEAR END TAX PLANNING With

More information

Making the most of your tax-free allowances

Making the most of your tax-free allowances UNISONMONEYTALK The personal finance newsletter for UNISON members published by Lighthouse Financial Advice Autumn 2015 Making the most of your tax-free allowances A key consideration for anyone with money

More information

GUIDE TO RETIREMENT PLANNING FINANCIAL GUIDE. Making the most of the new pension rules to enjoy freedom and choice in your retirement

GUIDE TO RETIREMENT PLANNING FINANCIAL GUIDE. Making the most of the new pension rules to enjoy freedom and choice in your retirement GUIDE TO RETIREMENT PLANNING Making the most of the new pension rules to enjoy freedom and choice in your retirement FINANCIAL GUIDE WELCOME Making the most of the new pension rules to enjoy freedom and

More information

Provide for your loved ones. A guide to death benefits from your pension plan

Provide for your loved ones. A guide to death benefits from your pension plan Provide for your loved ones A guide to death benefits from your pension plan This guide covers the death benefits from the following plans: Self Invested Personal Pension Group Self Invested Personal Pension

More information

COCKBURN LUCAS INDEPENDENT FINANCIAL CONSULTING

COCKBURN LUCAS INDEPENDENT FINANCIAL CONSULTING COCKBURN LUCAS INDEPENDENT FINANCIAL CONSULTING Guide to Inheritance Tax Contents This guide provides general guidance only and should not be relied on for major decisions on property or tax. You should

More information

PENSIONS REFORM 6 APRIL 2015 YOUR QUESTIONS ANSWERED.

PENSIONS REFORM 6 APRIL 2015 YOUR QUESTIONS ANSWERED. PENSIONS REFORM 6 APRIL 2015 YOUR QUESTIONS ANSWERED. Following Government changes effective on 6 April 2015, there are different ways for anyone over 55 to access their defined contribution pension pots

More information

guide to pension tax relief.

guide to pension tax relief. guide to pension tax relief. introduction tax benefits of pensions tax relief maximum contributions how to make a pension contribution what next? introduction tax benefits of pensions tax relief maximum

More information

Taxation of a lump sum death benefit paid to an individual or a James Hay Partnership bypass trust

Taxation of a lump sum death benefit paid to an individual or a James Hay Partnership bypass trust ADVISER FACTSHEET Tech Talk February 2015 Taxation of a lump sum death benefit paid to an individual or a James Hay Partnership bypass trust In light of the Taxation of Pensions Act 2014, this Tech Talk

More information

International Bond Key features

International Bond Key features International Bond Key features This is an important document. Please read it and keep for future reference. Helping you decide This key features document contains important information about the main

More information

A guide to the pension changes in April 2015

A guide to the pension changes in April 2015 A guide to the pension changes in April 2015 106027837.indd 1 05/01/2015 10:00 Contents What do the changes mean for you? 3 Summary of the changes from 6 April 2015 5 What s changed in practice? 6 How

More information

Planning a prosperous retirement

Planning a prosperous retirement Planning a prosperous retirement Towry s Guide to Retirement Planning About Towry We are one of the UK s leading Wealth Advisers and specialise in providing high quality, expert financial advice to private

More information

DECEMBER 2014 AUTUMN STATEMENT

DECEMBER 2014 AUTUMN STATEMENT DECEMBER 2014 AUTUMN STATEMENT SUMMARY The key announcements by The Chancellor providing opportunities for financial planning advice are outlined below. PENSIONS Summary of all the pension changes to apply

More information

Information about tax relief, limits and your pension

Information about tax relief, limits and your pension Information about tax relief, limits and your pension Published: August 2015 Laws and tax rules have changed in 2015. The information here is based on our understanding in August 2015. Your personal circumstances

More information

KEY GUIDE. Investing for income when you retire

KEY GUIDE. Investing for income when you retire KEY GUIDE Investing for income when you retire Planning the longest holiday of your life There comes a time when you stop working for your money and put your money to work for you. For most people, that

More information

KEY GUIDE. Pensions and tax planning for high earners

KEY GUIDE. Pensions and tax planning for high earners KEY GUIDE Pensions and tax planning for high earners The rising tax burden on income If you find more and more of your income is taxed at over the basic rate, you are not alone. The point at which you

More information

NISAs a simple explanation

NISAs a simple explanation NISAs a simple explanation A NISA is a New Individual Savings Account. As the name suggests, these are accounts that can be accessed by individuals (you cannot have a NISA in joint names). ISAs were introduced

More information

Your options at retirement

Your options at retirement UPDATED: 6 April 2015 NEW pension freedoms Your options at retirement How to take tax-free lump sums and income, under new pension freedoms One College Square South, Anchor Road, Bristol, BS1 5HL www.hl.co.uk

More information

International Portfolio Bond for Wrap Key Features

International Portfolio Bond for Wrap Key Features International Portfolio Bond for Wrap Key Features This is an important document. Please read it and keep it along with the enclosed personal illustration for future reference. The Financial Conduct Authority

More information

21 Tax Saving Tips Tax & Accounts www.hfmtax.co.uk

21 Tax Saving Tips Tax & Accounts www.hfmtax.co.uk 21 Tax Saving Tips Tax & Accounts www.hfmtax.co.uk Everyone wants to save tax and, although there are complex tax savings schemes available, some tax savings are simple. You just need to take some care

More information

PRIVATE CLIENT BRIEFING:

PRIVATE CLIENT BRIEFING: PRIVATE CLIENT BRIEFING: I M A US CITIZEN RESIDENT IN THE UK, WHAT DO I NEED TO KNOW? JANUARY 2013 Almost uniquely, the US taxes its citizens (and Green Card holders) on a worldwide basis regardless of

More information

Guide to SIPPs. Investment Helpdesk: 0131 550 1212. www.cs-d.co.uk

Guide to SIPPs. Investment Helpdesk: 0131 550 1212. www.cs-d.co.uk Investment Helpdesk: 0131 550 1212 www.cs-d.co.uk SIPP stands for Self Invested Personal Pension. SIPPs are a flexible type of personal pension. Like most, they are designed to provide a retirement pot

More information

A Guide to the Discounted Gift Trust

A Guide to the Discounted Gift Trust A Guide to the Discounted Gift Trust > Contents Inheritance tax planning 04 What can the Discounted Gift Trust do for you? 05 Choice of trusts and inheritance tax 06 How does the trust work? 07 Income

More information

Pension benefits guide How you can use your pension pot to suit your needs

Pension benefits guide How you can use your pension pot to suit your needs Pension benefits guide How you can use your pension pot to suit your needs axawealth.co.uk With the flexibility you have to take benefits through your pension, it can be difficult to know what s best for

More information

Sweeter tax planning ideas

Sweeter tax planning ideas Sweeter tax planning ideas Helping to ensure you have made full use of the reliefs and allowances available www.bakertilly.co.uk Contents Sweeter tax planning ideas To ensure that you optimise your tax

More information

KEY GUIDE. Pensions and tax planning for high earners

KEY GUIDE. Pensions and tax planning for high earners KEY GUIDE Pensions and tax planning for high earners The rising tax burden on income If you find more and more of your income is taxed at over the basic rate, you are not alone. The higher rate threshold

More information

Contents. Aims, commitments and risks. Questions and answers. Contributions. Transfers. Investments

Contents. Aims, commitments and risks. Questions and answers. Contributions. Transfers. Investments SIPP ISA Dealing Junior ISA SIPP key features The Financial Conduct Authority is the independent financial services regulator. It requires us, AJ Bell Management Limited, to give you this important information

More information

Key Features. of the Suffolk Life SIPP (Deed Poll Scheme)

Key Features. of the Suffolk Life SIPP (Deed Poll Scheme) Key Features of the Suffolk Life SIPP (Deed Poll Scheme) This document is part of a set, all of which should be read together. Key Features Your Personal Illustration Schedule of Fees Schedule of Allowable

More information

CHAPTER 3 TAX RELIEFS

CHAPTER 3 TAX RELIEFS CHAPTER 3 TAX RELIEFS Tolley Exam Training EIS Diploma December 2014 Disclaimer Tolley takes every care when preparing this material. However, no responsibility can be accepted for any losses arising to

More information

My client s a US citizen resident in the UK, what do I need to know?

My client s a US citizen resident in the UK, what do I need to know? My client s a US citizen resident in the UK, what do I need to know? So if my client s estate is worth less than the Credit Amount, my client has no reason to worry? Unfortunately, it isn t that simple.

More information

TD Direct Investing A Guide to ISAs

TD Direct Investing A Guide to ISAs TD Direct Investing A Guide to ISAs Introduction The aim of this guide is to explain how an Individual Savings Account (ISA) works and the benefits to investors. We offer our services on an execution-only

More information

Pensions Tax Reliefs. 03333 219 000 advice@bishopfleming.co.uk. www.bishopfleming.co.uk

Pensions Tax Reliefs. 03333 219 000 advice@bishopfleming.co.uk. www.bishopfleming.co.uk Pensions Tax Reliefs Types of pension schemes There are two broad types of pension schemes from which an individual may eventually be in receipt of a pension: Workplace pension schemes Personal Pension

More information

Key Features of the Ascentric Pension Account (SIPP)

Key Features of the Ascentric Pension Account (SIPP) Key Features of the Ascentric Pension Account (SIPP) Introduction The Financial Conduct Authority is a financial services regulator. It requires us, Investment Funds Direct Limited (IFDL), to give you

More information

Your guide to Annuities

Your guide to Annuities Your guide to Annuities From Standard Life It s good to know what s around the next corner 1 of 24 If you would like a secure source of income and have a built up pension fund or a lump sum to invest,

More information

The pension freedoms are one of the

The pension freedoms are one of the PARLIAMENTHILLMONEYTALK The personal finance newsletter for Parliament Hill member organisations published by Lighthouse Financial Advice AUTUMN 2015 How to reduce tax on your pension and other assets

More information

TRUST AND ESTATE PLANNING PARTNERS IN MANAGING YOUR WEALTH PARTNERS IN MANAGING YOUR WEALTH

TRUST AND ESTATE PLANNING PARTNERS IN MANAGING YOUR WEALTH PARTNERS IN MANAGING YOUR WEALTH TRUST AND ESTATE PLANNING 1 About St. James s Place At St. James s Place Wealth Management we offer a wide range of high quality services to both individuals and businesses. At the heart of the business

More information

exploring the options

exploring the options Information caveat The content of this presentation is provided for illustrative purposes only and is not intended to be used for individual investment or financial planning and does not constitute personal

More information

Key Features Document

Key Features Document Keyfacts Key Features Document Transact Section 32 Buy Out Bond IntegraLife UK Limited A firm authorised and by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and

More information

PROTECTION GIFT TRUSTS FLEXIBLE TRUST PACK.

PROTECTION GIFT TRUSTS FLEXIBLE TRUST PACK. PROTECTION GIFT TRUSTS FLEXIBLE TRUST PACK. Technical Guide Flexible Trust Deed 2 PROTECTION GIFT TRUSTS FLEXIBLE TRUST PACK INTRODUCTION This guide has been written to explain what a Flexible Trust is,

More information

personal year-end tax planning

personal year-end tax planning personal year-end tax planning 2013/2014 START year to 5 April 2014 welcome INCOME TAX Carry back planning personal Year-end tax planning 2013/2014 welcome this briefing covers actions you may wish to

More information

A guide to inheritance tax

A guide to inheritance tax Sept 2014 Contents: 1. Understanding inheritance tax page 02 more 2. Should I be worried about inheritance tax? page 03 more 3. Inheritance tax planning page 05 more 4. Using gifts page 07 more 5. Using

More information

Pensions Tax Reliefs

Pensions Tax Reliefs Our Vision Pensions Tax Reliefs To become the Best Provider of Solutions for Businesses in Coventry & Warwickshire Types of pension schemes There are two broad types of pension schemes from which an individual

More information

OCTOPUS EVERYTHING YOU NEED TO KNOW ABOUT INHERITANCE TAX

OCTOPUS EVERYTHING YOU NEED TO KNOW ABOUT INHERITANCE TAX OCTOPUS EVERYTHING YOU NEED TO KNOW ABOUT INHERITANCE TAX CONTENTS Understanding inheritance tax 3 Should I be worried about inheritance tax? 4 Inheritance tax planning 6 Using gifts 8 Using trusts 10

More information

Smart strategies for maximising retirement income

Smart strategies for maximising retirement income Smart strategies for maximising retirement income 2010 Why you need to create a life-long income Australia has one of the highest life expectancies in the world and the average retirement length has increased

More information

SIPP ISA Dealing Junior ISA SIPP benefi ts guide

SIPP ISA Dealing Junior ISA SIPP benefi ts guide SIPP ISA Dealing Junior ISA SIPP benefits guide Contents Introduction SIPP benefits - the basics Annuity, income drawdown and taxable lump sums the commitments and risks 3 Your benefits options Lump sums

More information

A Guide to NISAs. The Generous Tax Efficient Accounts

A Guide to NISAs. The Generous Tax Efficient Accounts A Guide to NISAs The Generous Tax Efficient Accounts Contents NISAs a simple explanation Who can invest into a NISA? The different types of NISAs available How much can be invested? How long do I need

More information

THE TAX TREATMENT OF PENSION DEATH BENEFITS

THE TAX TREATMENT OF PENSION DEATH BENEFITS THE TAX TREATMENT OF PENSION DEATH BENEFITS Recent changes to the rules for pensions have radically changed the approach of advisers with regard to pension savings. The following notes are designed to

More information

Smart strategies for maximising retirement income 2012/13

Smart strategies for maximising retirement income 2012/13 Smart strategies for maximising retirement income 2012/13 Why you need to create a life long income Australia has one of the highest life expectancies in the world and the average retirement length has

More information

retirement planning the retirement you want Heineken UK Flexible Retirement Plan

retirement planning the retirement you want Heineken UK Flexible Retirement Plan my retirement planning the retirement you want Heineken UK Flexible Retirement Plan Contents Get an overview of the Heineken UK Flexible Retirement Plan What is the Flexible Retirement Plan? 4 Your benefits

More information

Standard Life Active Retirement For accessing your pension money

Standard Life Active Retirement For accessing your pension money Standard Life Active Retirement For accessing your pension money Standard Life Active Retirement our ready-made investment solution that allows you to access your pension savings while still giving your

More information

Pensions - Tax Reliefs

Pensions - Tax Reliefs Pensions - Tax Reliefs Types of pension schemes There are two broad types of pension schemes from which an individual may eventually be in receipt of a pension: Occupational schemes Personal Pension schemes.

More information

INVESTMENT POTENTIAL,

INVESTMENT POTENTIAL, ADD POWER TO YOUR INVESTMENT POTENTIAL, CHOOSE THE M&G ISA 2 CONTENTS What is an ISA? 3 The key benefits of ISA investing 4 Reasons to invest in The M&G ISA 6 What is a Junior ISA? 7 The key benefits of

More information

For customers Wealth Management Portfolio A flexible, tax-efficient investment

For customers Wealth Management Portfolio A flexible, tax-efficient investment For customers Wealth Management Portfolio A flexible, tax-efficient investment Introducing our Wealth Management Portfolio Our Wealth Management Portfolio is a tax-efficient offshore bond with lots of

More information

SIPP Key Facts. This is an important document which you should keep.

SIPP Key Facts. This is an important document which you should keep. SIPP Key Facts! This is an important document which you should keep. 2 Key Facts of the Alliance Trust Savings SIPP The Financial Conduct Authority is the independent financial services regulator. It requires

More information

Intermediary guide to trusts

Intermediary guide to trusts Intermediary guide to trusts Important: The information in this guide is based on our understanding of current United Kingdom law and HM Revenue & Customs practice, which is subject to change. We cannot

More information

Taxable income band Property Interest Dividends

Taxable income band Property Interest Dividends THE TAXATION OF INVESTMENTS The taxation of investments has never been a simple matter. In recent years it has become more complex as successive governments have chosen to tax different sources of investment

More information

INHERITANCE TAX PLANNING. Sharing assets. Wills. Potentially exempt transfers (PETs)

INHERITANCE TAX PLANNING. Sharing assets. Wills. Potentially exempt transfers (PETs) INHERITANCE TAX PLANNING Substantial amounts of tax could be payable on the estates of individuals who do not plan for inheritance tax (IHT). The first 325,000 for 2014/15 is taxed at a nil-rate, but the

More information

MORE CHOICE MORE FREEDOM

MORE CHOICE MORE FREEDOM LOOK FORWARD TO MORE CHOICE MORE FREEDOM A guide to Income Release Pension Portfolio royallondon.com WELCOME TO ROYAL LONDON We re a mutual organisation and, unlike a PLC, we don t have any shareholders

More information

It is important to develop a long-term strategy for IHT planning using all the reliefs and exemptions that are suitable.

It is important to develop a long-term strategy for IHT planning using all the reliefs and exemptions that are suitable. Introduction Substantial amounts of tax could be payable on the estates of individuals who do not plan for inheritance tax (IHT). The first 325,000 for 2012/13 is taxed at a nil-rate, but the balance of

More information

Conventional Lifetime Annuity Options Your Questions Answered

Conventional Lifetime Annuity Options Your Questions Answered Conventional Lifetime Annuity Options Your Questions Answered 0845 077 7077 (8.30am-6pm weekdays) Calls may be recorded for training and monitoring purposes. www.425fs.co.uk Contents 1. Introduction to

More information

PLANNING THE RETIREMENT YOU WANT

PLANNING THE RETIREMENT YOU WANT PLANNING THE RETIREMENT YOU WANT Charlotte Supply Chain Graduate HEINEKEN UK Flexible Retirement Plan Contents A reminder of... How the Flexible Retirement Plan works 4 The benefits 6 Consider what you

More information

Investing for Children. explained

Investing for Children. explained Investing for Children explained About Killik & Co We pride ourselves in being a relationship firm. Each client has their own dedicated Broker, who acts as the single point of contact to provide award

More information

KEY FEATurES of LEGAL & GEnErAL S PEnSIon AnnuITIES.

KEY FEATurES of LEGAL & GEnErAL S PEnSIon AnnuITIES. PEnSIon AnnuITIES KEY FEATurES of LEGAL & GEnErAL S PEnSIon AnnuITIES. Helping you make the right decisions for your future INsuRANCe. savings. INVesTMeNT MANAGeMeNT. 01 Key features of Legal & General

More information

Helping you understand inheritance tax planning. We ll help you get there

Helping you understand inheritance tax planning. We ll help you get there Helping you understand inheritance tax planning investments pensions PROTECTION We ll help you get there As Benjamin Franklin said, In this world nothing is certain but death and taxes. Inheritance tax

More information

KEY GUIDE. Pensions freedom drawing from your pension

KEY GUIDE. Pensions freedom drawing from your pension KEY GUIDE Pensions freedom drawing from your pension Radical reform The changes revealed in the 2014 Budget were described by some retirement planning experts as a pensions revolution. The radical proposals

More information

VCT/EIS AND TAX PLANNING IDEAS. The following presentation is for investment professionals only and should not be relied upon by any other person

VCT/EIS AND TAX PLANNING IDEAS. The following presentation is for investment professionals only and should not be relied upon by any other person VCT/EIS AND TAX PLANNING IDEAS The following presentation is for investment professionals only and should not be relied upon by any other person This slide looks important And you can tell it is because

More information

Year end tax planning checklist 2015/2016

Year end tax planning checklist 2015/2016 Year end tax planning checklist 2015/2016 At Heartwood we make every effort to advise clients on sensible and appropriate ways to reduce their tax burden in a straight forward manner. To complement this

More information

Your Wealth. In this newsletter. november 2014. A newsletter from our personal financial planning team

Your Wealth. In this newsletter. november 2014. A newsletter from our personal financial planning team november 2014 Your Wealth A newsletter from our personal financial planning team In this newsletter 2 Freedom and choice in pensions 4 Saving for retirement Pension or NISA? 6 For peace of mind, opt for

More information

Key Features of the Cofunds Junior Investment ISA

Key Features of the Cofunds Junior Investment ISA SELF-DIRECTED Explicit Pricing Model Key Features of the Cofunds Junior Investment ISA This document relates to the Cofunds Junior Investment ISA. This is the only product available on the Cofunds platform

More information

April 2015: Forthcoming Pension Changes. Retirement options for money purchase pension schemes (including SSAS).

April 2015: Forthcoming Pension Changes. Retirement options for money purchase pension schemes (including SSAS). April 2015: Forthcoming Pension Changes Significant changes to pension regulations are being introduced on the 6 th April 2015. The legislation will be covered in the Taxation of Pensions Bill 2014 and

More information

KEY GUIDE. The taxation of investments

KEY GUIDE. The taxation of investments KEY GUIDE The taxation of investments Increasing complexity The taxation of investments has never been a simple matter. In recent years it has become more complex as successive governments have chosen

More information

A guide to pension tax

A guide to pension tax A guide to pension tax Footer info Zurich Blue 2 or White Contents About this guide 3 Tax treatment of payments 4 Eligibility to receive tax relief on payments Tax relief on payments made to pension schemes

More information

YEAR END TAX GUIDE & PENSION FREEDOMS 2014/15

YEAR END TAX GUIDE & PENSION FREEDOMS 2014/15 YEAR END TAX PLANNING GUIDE & PENSION FREEDOMS 2014/15 Welcome Our year end guide summarises some key tax and financial planning tips which should be considered prior to the end of the tax year on 5 April

More information

Your guide to UK inheritance tax and trusts. Guide for UK domicile investors only. September 2011. We ll help you get there

Your guide to UK inheritance tax and trusts. Guide for UK domicile investors only. September 2011. We ll help you get there Your guide to UK inheritance tax and trusts Guide for UK domicile investors only September 2011 investments pensions PROTECTION We ll help you get there introduction This guide is designed to give you

More information

PROTECTION GIFT TRUSTS DISCRETIONARY TRUST PACK.

PROTECTION GIFT TRUSTS DISCRETIONARY TRUST PACK. PROTECTION GIFT TRUSTS DISCRETIONARY TRUST PACK. Technical Guide Discretionary Trust Deed 2 PROTECTION GIFT TRUSTS DISCRETIONARY TRUST PACK INTRODUCTION. This guide has been written to explain what a Discretionary

More information

Buy-to-let guide about tax

Buy-to-let guide about tax Perrys Chartered Accountants Buy-to-let guide about tax Introduction As a buy-to-let landlord it is important you know about tax and how it affects you and your investment. This is why Perrys Chartered

More information

Our guide to. buying an annuity

Our guide to. buying an annuity Our guide to buying an annuity 2 Our guide to buying an annuity Contents Introduction 3 Pension reforms Thinking about retirement 3 Money and budgeting How can we help? Your retirement timeline Key questions

More information

Planning. Income & Expenditure

Planning. Income & Expenditure Planning Retirement Cashflow Planner Once salary details and amount of net income required at retirement are input, calculator will then look at the client s assets and expected growth to retirement together

More information

KEY FEATURES OF LEGAL & GENERAL S PENSION ANNUITY.

KEY FEATURES OF LEGAL & GENERAL S PENSION ANNUITY. PENSION ANNUITIES KEY FEATURES OF LEGAL & GENERAL S PENSION ANNUITY. HELPING YOU MAKE THE RIGHT DECISIONS FOR YOUR FUTURE This is an important document that you should keep in a safe place. 02 KEY FEATURES

More information

Group Flexible Retirement Plan Key features

Group Flexible Retirement Plan Key features Group Flexible Retirement Plan Key features This is an important document. Please read it and keep it for future reference. Key features document: Pages 1 21 Terms and conditions for joining: Pages 22

More information

Pensions Tax Reliefs. Factsheets. What are the tax breaks and controls on the tax breaks? Types of pension schemes

Pensions Tax Reliefs. Factsheets. What are the tax breaks and controls on the tax breaks? Types of pension schemes Factsheets Pensions Tax Reliefs Types of pension schemes There are two broad types of pension schemes from which an individual may eventually be in receipt of a pension: Occupational schemes Personal Pension

More information

Basic Guide to Retirement Income Options

Basic Guide to Retirement Income Options Basic Guide to Retirement Income Options Can I afford to retire? Which retirement income solution is best for me? Should I take all my tax-free cash entitlement? Will my family benefit from my pension

More information

creative employee benefits Workplace Financial Education More a necessity for employers than a cost August 2015 quarterly newsletter

creative employee benefits Workplace Financial Education More a necessity for employers than a cost August 2015 quarterly newsletter creative employee benefits quarterly newsletter August 2015 Workplace Financial Education More a necessity for employers than a cost Employee Benefits News Creative Employee Benefits is committed to helping

More information

A brief guide to Trusts and our Trustbuilder tool

A brief guide to Trusts and our Trustbuilder tool guide to guide to trusts trusts A brief guide to Trusts and our Trustbuilder tool A Brief guide to Trusts and our Trustbuilder tool Introduction This brief guide explains some of the main features and

More information

PASSING ON YOUR PENSION. A guide to death benefits from income drawdown. Retirement Solutions

PASSING ON YOUR PENSION. A guide to death benefits from income drawdown. Retirement Solutions PASSING ON YOUR PENSION A guide to death benefits from income drawdown Retirement Solutions It s now easier than ever to pass any remaining money in your pension to the people you love when you die. New

More information

Freedom and Choice in Pensions. Your guide to the changes

Freedom and Choice in Pensions. Your guide to the changes Freedom and Choice in Pensions Your guide to the changes Contents Freedom and Choice 3-5 in Pensions Buy an annuity 6-7 Remain invested - 8-9 entering drawdown Take a cash lump sum 10 Will providers offer

More information

Key features. For customers One Retirement

Key features. For customers One Retirement For customers One Retirement Key features Contents Its aims 02 Your commitment 02 Risks 03 Questions and answers 04 Secure retirement income (SRI) 08 Other information 11 How to contact us 12 The Financial

More information

Relevant Life Insurance

Relevant Life Insurance For adviser use only. Not approved for use with customers. Relevant Life Insurance Introducing Relevant Life Insurance Retirement Investments Insurance Health Introducing Relevant Life Insurance We ve

More information

SELECT SIPP. Taking pension benefits guide

SELECT SIPP. Taking pension benefits guide SELECT SIPP Taking pension benefits guide Please read this guide in conjunction with the Alliance Trust Savings Handbook and the appropriate Key Features documents. Alliance Trust Savings does not give

More information

UNDERSTANDING YOUR FUTURE CREATE A PICTURE OF YOUR RETIREMENT

UNDERSTANDING YOUR FUTURE CREATE A PICTURE OF YOUR RETIREMENT UNDERSTANDING YOUR FUTURE CREATE A PICTURE OF YOUR RETIREMENT CONTENTS My Future 2 Your Family 2 Your Property 3 Your Assets 3 Your Future Summary 4 Your Retirement 4 Your Future Income 5 Details & Events

More information

KEY GUIDE. Drawing profits from a company

KEY GUIDE. Drawing profits from a company KEY GUIDE Drawing profits from a company Constantly changing tax rules When you draw profits from an owner-managed company it is important that you do it in ways that minimise the tax and national insurance

More information

Close Brothers Self Directed Service Key Features and Charges

Close Brothers Self Directed Service Key Features and Charges Close Brothers Self Directed Service Key Features and Charges Contents 1) Key Features of the Close Stocks & Shares ISA and Close Cash ISA 2) Key Features of the Close Investment Account 3) Key Features

More information

A GUIDE TO INCOME TAX AND YOUR PENSION

A GUIDE TO INCOME TAX AND YOUR PENSION A GUIDE TO INCOME TAX AND YOUR PENSION Contents INTRODUCTION 3 Key FACTS 3 YOUR PENSION WITHDRAWALS: WHAT S TAXABLE? 4 The tax-free element of your withdrawals 4 The taxable element of your withdrawals

More information

Onshore Bond for Wrap Key Features

Onshore Bond for Wrap Key Features Onshore Bond for Wrap Key Features This is an important document. Please read it and keep it along with your personal illustration for future reference. The Financial Conduct Authority is a financial services

More information

Capital Investment Bond Key features for additional investments only

Capital Investment Bond Key features for additional investments only Capital Investment Bond Key features for additional investments only This is an important document. Please read it and keep for future reference. The Financial Conduct Authority is a financial services

More information

Elevate. Your guide to the Elevate Pension Investment Account. I need a pension that will look after me and my family

Elevate. Your guide to the Elevate Pension Investment Account. I need a pension that will look after me and my family Elevate Your guide to the Elevate Pension Investment Account 1 I need a pension that will look after me and my family What is Elevate? 5 What is the Elevate PIA? 6 Choosing Investments 12 Your options

More information