Income Tax – The personal allowance is reduced by £1 for every £2 of income above £100,000
(*) Consider transferring income yielding assets to a spouse or civil partner to maximise your allowances.
Capital Gains Tax – The annual exemption for 2020/21 is £12,000
(*) Married couples and civil partners can consider transferring assets to the other at a no gain and no loss basis to ensure the respective annual exemptions are fully used (remember … ownership changes!).
Main Residence – Principal Private Residence election
(*) If you own more than one home, consider whether a principal private residence election is needed. You have two years to make an election.
Tax Favoured Investments – Prudent utilisation of the relief’s can bring benefits
(*) Tax favoured investments as part of a balanced portfolio can make a difference to future investment returns, but it is important to consider the risks associated with them and it is essential that professional advice is sought. The list to check out includes Individual Savings Accounts, Enterprise Investment Schemes, Seed EIS Shares, Venture Capital Trusts.
Inheritance Tax (IHT) – There are possibilities to reduce the impact
(*) Seek advice on IHT planning during your lifetime in order to use available exemptions and reliefs where appropriate.
Pensions – Check the thresholds and possible protection opportunities
(*) If the total of all your pension funds is likely to be at or near £1m by the time you retire, you should seek immediate advice, including whether you should opt for one of the available protections from the reductions in the lifetime allowance.
We have set out above what is only a brief summary of some key points that involve quite complex rules. Always take relevant professional advice before taking, or refraining from taking, any action.
Remember, we are here to help so please do not hesitate to contact us regarding your financial planning situation. Reviews and our Lifetime Financial Planning service are part of our added-value services for our clients.
We have set out above what is only a brief summary of some key points that involve quite complex considerations. Allowances, caps, levels and bases of, and reliefs from, taxation are subject to change and their value to you will depend upon your personal circumstances. Information and data may change after the date of their original promulgation in our Newsletter or this Focus article. Always seek relevant professional advice before taking, or refraining from taking, any action.
Barry Fleming & Partners has grown from a tax advisory background into a broader business that encompasses investment management. Both things matter for wealth management, retention and creation. That expertise makes the company strikingly different from others.
This capability allows Barry Fleming and Partners to use its strength in tax advice to take a 360-degree-view of a financial situation to give much broader, more comprehensive advice.
We bring together up to the minute tax, estate, investment and retirement planning advice to create individual, ‘joined up’ financial strategies. This allows our clients to understand and have confidence in how they can best control, retain, and build their assets and income to achieve their objectives with least risk.
A high level of service is key to our long-term client relationships. We work collaboratively. That means our clients can benefit at all times from having ready access to our team of financial planners.
Barry Fleming & Partners are an independent financial advisor specialising in ISA’s, Pensions, Tax, Trusts, Estate Planning, Inheritance Tax Planning (IHT) and other Financial Planning areas. Please don’t hesitate to call on 01488 608 686 and ask to talk to one of our financial advisors. Alternatively use the contact form on our home page.