How we can help with taxes

We can never be sure how tax allowances will change and when, so it is important to take advantage of the allowances for the current tax year which may save you money in the long run. 

While sometimes it’s easier to have a quick look at your tax affairs at the end of each tax year, a wealth manager can give a much closer inspection of your finances to make sure you are being as tax efficient as possible.

Each individuals’ circumstances are different, but here is an example of how we helped one family ensure their tax affairs were in order.

Although the following case study relates to an actual example, where we have helped our clients by providing solutions to their financial problems, the names have been changed for confidentiality purposes.

My Clients Background

Mr & Mrs Brown are a married couple with three children, aged 18, 21 and 24. Mr and Mrs Brown are also Directors of their own company. They came to us concerned that they were not being tax-efficient when drawing an income from the business, were burdened with too many unorganised pensions, and also wanted to minimise their Inheritance Tax (IHT) liability to ensure they passed on as much as they could to their children.

Although the following case study relates to an actual example, where we have helped our clients by providing solutions to their financial problems, the names have been changed for confidentiality purposes.

How we helped them

The in-depth understanding of the current tax rules we can provide resulted in significant tax savings for Mr & Mrs Brown. Some of these savings were instant, and some will come into effect when the clients retire.

As Mr & Mrs Brown were business owners and higher rate taxpayers, the best place to start was utilising the tax relief available with pension contributions. After consolidating their pension schemes, we advised them to contribute to their plans through their company, which reduced their corporation tax liability, as well as income tax. 

Next, we made sure we fully unutilised ISA and Capital Gains Tax allowances. The holistic wealth management strategy we created for Mr & Mrs Brown ensured they always maximise these allowances, as they were in the financial position to do so. Using your ISA allowance each year is vital to being tax efficient, as this wrapper protects you from paying tax on interest from cash or capital gains from investments that are inside the ISA.

However, the benefits of our advice did not stop at there. As they had a large inheritance tax liability, we developed a strategy involving a mixture of investment vehicles, insurance plans and trusts; on top of a structured gifting strategy, to help reduce this. All of this made sure that further growth to their wealth did not form part of their estate, and so was free from inheritance tax and could be passed on to their children.

By working closely with Mr & Mrs Brown, we gave them an effective, bespoke financial plan for their future. Each and every one of our clients come to us with different circumstances, needs and goals. We pride ourselves in the bespoke service we can offer you, which can cater to exactly what you require.

If you feel like you need expert advice, we’re always here to help you. To contact us, call us on 01858 791182 or get in touch.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief generally depends on individual circumstances.

Trusts are not regulated by the Financial Conduct Authority.

The advice provided to Mr and Mrs Brown was given after a full evaluation of their specific needs, circumstances, and requirements.  The solutions provided would not be suitable for most investors and the information provided does not constitute advice.

Get in touch.

We work with many local business owners and directors across the Midlands, helping them and their families to become financially independent.

Whether you are a startup looking to scale or a seasoned business owner planning your next journey, we will take the time to understand your objectives and plan a course of action.

You can call us on 01858 791 182  or email us at the link below.

Contact Us

Midlands is a member of Sovereign Wealth LLP.

Find out more about Sovereign at our corporate site.

SOVEREIGN CORPORATE SITE