Do you fall into the 60% tax trap?
Making additional pension contributions could mean lowering your effective tax rate For many earners in England, Wales or Northern Ireland, the highest Income Tax rate is 45%. However, while 45% is the highest ‘official’ rate, some individuals effectively pay a tax rate of 60% on part of their income. This phenomenon, commonly called the ‘60% […]
Growing your wealth
Reinvesting dividends can significantly boost your investment returns over the long haul When most people think of dividends, they associate them with generating regular income. However, dividends offer much more than that – they can be a valuable ally in growing your wealth over time. The strategy of reinvesting dividends, where you use the cash […]
Creating a robust estate plan
Why having a plan in place offers peace of mind Estate planning is often misunderstood as a concern only for the affluent. However, the reality is that managing your assets and final wishes is something everyone should contemplate, irrespective of their financial situation. A robust estate plan acts as a financial safeguard, ensuring your family’s […]
Tools to safeguard your financial and personal legacy
Taking the first proactive step towards protecting what matters most Estate planning is an essential process that enables you to maintain control of your assets, express your wishes clearly and alleviate the burden on your loved ones during challenging times. It equips you with the means to protect your financial and personal legacy, ensuring your […]
A one-size-fits-all approach is rarely effective
Set specific, realistic and actionable objectives Estate planning is never straightforward. It involves many considerations, and adopting a one-size-fits-all approach is rarely effective. Every individual’s estate plan should be uniquely crafted to reflect their personal goals and circumstances.
Role of debt in estate planning
Avoiding unnecessary complications for your loved ones One of the initial steps in estate planning is to evaluate your financial liabilities. It is crucial to recognise that debts do not vanish upon death; they must be settled from your estate. Maintaining a thorough and accurate record of your outstanding obligations enables the executor of your […]
Proactive approach to managing family wealth
Legally reduce the portion of your assets lost to taxation Organising your affairs for when the inevitable occurs can provide significant peace of mind as you age. A proactive approach to managing family wealth, particularly in minimising exposure to Inheritance Tax, is essential for safeguarding your legacy. Without adequate planning, families may encounter substantial financial […]
Intergenerational wealth transfer
Preserving a family’s legacy, values and lessons learned over a lifetime Passing on wealth to the next generation is about more than money. It’s an opportunity to preserve a family’s legacy, values and lessons learned over a lifetime. By engaging in strategic planning, you can reduce the burden of taxes while ensuring your heirs are […]
Residence Nil Rate Band
Extra tax-free allowance introduced on 6 April 2017 The Residence Nil Rate Band (RNRB) is an extra tax-free allowance introduced on 6 April 2017. It is applicable to estates where a residence or its value is inherited by the deceased’s direct descendants, including children or grandchildren. For the 2024/25 tax year, the maximum RNRB is […]
Lifetime transfers and the seven-year rule
Valuable opportunities to strategically reduce your estate’s tax liability Potentially Exempt Transfers (PETs) and Chargeable Lifetime Transfers (CLTs) broadly define gifts made during an individual’s lifetime. Their classification depends on the nature of the gift and the recipient. It is equally important to note that some lifetime transfers are exempt, meaning they are not subject […]