A recent report (Barclays, 2024) estimates 13

The beginning of the new tax year is the perfect opportunity to take control of your finances and set the tone for the months ahead. 

By implementing a thoughtful financial plan, you can make the most of your money, achieve your goals and ensure financial peace of mind. Here are just a few key considerations to help you build a solid plan:

Maximise tax-efficient opportunities

The new tax year brings fresh allowances and reliefs potentially available to reduce your tax liability:

• Use your ISA allowance – Save or invest up to £20,000 (the current annual limit) in an Individual Savings Account (ISA) to grow funds tax-free
• Pension contributions – Maximise pension contributions to benefit from tax relief as well as potentially lowering your taxable income
• Capital Gains Tax planning – Make use of your annual exemption to avoid unnecessary tax liabilities. 

Build a solid financial plan for a stronger financial future

Why not take time to reset and refocus on your financial goals? With clear objectives, smart tax planning and disciplined financial habits, you can start the new tax year strong and lay the foundation for long-term financial success.

*The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

million UK adults are sitting on £430bn

of cash savings. The report, titled ‘Empowering retail savers to engage with investing’ suggests savers are “missing out” on earning better returns over the long term.

The research highlights three reasons why savers are reluctant to invest:

•  Too many options: One in five (21%) people with savings don’t think they have the knowledge to choose what to invest in, while 24% think investing is too complicated
• Not confident with comparing investments: Nearly three quarters (74%) need help to determine which type of investment is suitable for them, while two-thirds (63%) want assistance in comparing investment products
• Too worried about risk: Almost half (43%) of savers think investing is too risky and could mean they “lose all their money.”

What is the long-term cost of saving instead of investing?

Financial software firm Oxford Risk believes choosing saving over investing carries a high cost, with savers missing out on up to 5% a year in lost returns. The firm is also concerned that a growing number of UK adults are choosing to ‘sit on the sidelines’ by keeping their money in cash.

What can be done to close the investing gap?

The Financial Conduct Authority (FCA) has made addressing cash holdings a strategic priority and Oxford Risk has urged, ‘More needs to be done beyond just raising awareness of the issue to drive the vital change in investor behaviour.’ 

Holding a proportion of your wealth in cash is worthwhile for liquidity, emergencies and short-term needs. However, history has shown that over the long term, investing yields higher returns than holding cash, although not guaranteed. The key is balance: keep enough cash for security but invest the rest to build wealth over time. Diversification to spread the risk is important.

*The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

A recent report (Barclays, 2024) estimates 13 million UK adults are sitting on £430bn

of cash savings. The report, titled ‘Empowering retail savers to engage with investing’ suggests savers are “missing out” on earning better returns over the long term.

The research highlights three reasons why savers are reluctant to invest:

•  Too many options: One in five (21%) people with savings don’t think they have the knowledge to choose what to invest in, while 24% think investing is too complicated
• Not confident with comparing investments: Nearly three quarters (74%) need help to determine which type of investment is suitable for them, while two-thirds (63%) want assistance in comparing investment products
• Too worried about risk: Almost half (43%) of savers think investing is too risky and could mean they “lose all their money.”

What is the long-term cost of saving instead of investing?

Financial software firm Oxford Risk believes choosing saving over investing carries a high cost, with savers missing out on up to 5% a year in lost returns. The firm is also concerned that a growing number of UK adults are choosing to ‘sit on the sidelines’ by keeping their money in cash.

 

What can be done to close the investing gap?

The Financial Conduct Authority (FCA) has made addressing cash holdings a strategic priority and Oxford Risk has urged, ‘More needs to be done beyond just raising awareness of the issue to drive the vital change in investor behaviour.’ 

Holding a proportion of your wealth in cash is worthwhile for liquidity, emergencies and short-term needs. However, history has shown that over the long term, investing yields higher returns than holding cash, although not guaranteed. The key is balance: keep enough cash for security but invest the rest to build wealth over time. Diversification to spread the risk is important.

*The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

Investing megatrends are powerful, long-term shifts expected to reshape industries, economies and investment markets on a global scale. These aren’t just passing trends, they’re already changing the way we live and work, influencing how businesses operate and where investors put their money.

Geopolitical conflict

Global tensions have been rising in recent years, with lengthy conflicts in Europe, the Middle East, and East Asia destabilising markets. Governments are ramping up defence spending, driving investment in military technology, missile systems and cybersecurity, especially as threats coming from AI emerge. For investors, global uncertainty presents opportunities as nations prioritise security and military innovation.

Artificial intelligence

More than just a trend, AI is driving economic change by automating tasks, reshaping business models and boosting efficiency. Massive investment in data centres, cloud computing and hardware is fuelling its expansion, with companies supporting AI infrastructure poised for strong growth. AI is also transforming industries by analysing vast data, generating insights and accelerating digital change. While concerns over

an ‘AI bubble’ have surfaced this year, especially after a new Chinese competitor called DeepSeek made headlines, AI seems unstoppable.

Demand for energy

Global energy consumption is surging, driven by economic growth, transport electrification and again, AI. This rising demand is reshaping the energy sector, creating both challenges and investment opportunities. Nuclear energy is making a comeback, with older plants being refurbished and new projects progressing. Meanwhile, offshore oil and gas exploration is reviving, showing that fossil fuels still play a key role. At the same time, renewable energy is thriving, with investments in solar, wind and hydrogen. Energy systems are increasing in sophistication as companies develop smart grids and energy storage solutions.

Shifting demographics

People are living longer, which means investors can benefit by focusing on sectors set for the rising demand in medical services, treatments and elderly care. Similarly, businesses catering to older consumers, such as those in travel, wellness and lifestyle industries, are poised to capitalise. At the same time, medical innovation is changing how we live and how long we live. Obesity drugs have reduced diabetes risk by 73% and cardiovascular deaths by 20%, while new cancer treatments and AI-driven drugs are pushing boundaries.

While markets fluctuate daily, megatrends are shaping the future, creating exciting opportunities along the way.

*The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

You could take your cue from the Swedes. They believe in ‘döstädning,’ or ‘death cleaning.’ It sounds pessimistic, but it involves decluttering your belongings to reduce the burden you leave behind to loved ones.

The philosophy gained international prominence through a 2018 book called The Gentle Art of Swedish Death Cleaning, by Margareta Magnusson, but many of the methods described to organise your home and belongings can be applied to your finances as well.

Why should you death clean your finances?

First, it can help you feel more in control of your money. Second, it can help you refocus your time (and money) on what matters most to you. And third, taking time to organise your finances now could spare your loved ones from a great deal of emotional and financial stress after you die.

Key steps in a financial spring clean

It’s a good idea to make a checklist and work your way through. Key steps include:

• Streamline your finances – Close accounts you don’t use, cancel unused subscriptions or memberships, and explore ways to cut back on wasteful spending

•  Build a document library – Gather all important documents, including Wills, insurance policies, investment portfolios and property deeds. Consider storing documents securely online. Having an easily-accessible document library will help make sure your loved ones can find critical information quickly when needed

•  Keep beneficiary information up to date – Review and update beneficiary details on life insurance policies, pensions and expressions of wishes to ensure they reflect your current intentions

• Revisit your investments – Are your investments still aligned with your long-term goals? Has your attitude to risk altered? Maybe your circumstances have changed? This information is important. We’ll monitor performance and rebalance when necessary; updating us on goals, risk preference and life changes will inform investment recommendations

•  Maximise tax-efficiency – The new tax year brings new opportunities, allowances and reliefs to take advantage of, so as to reduce your tax liability. This includes revisiting your IHT strategy, which can help reduce the liability on your estate

•  Consider your retirement plan – Are you saving enough into your pension to provide you with the lifestyle you desire in retirement? Are the underlying investments right for you? If you have multiple pension pots, would consolidating them be relevant for your unique requirements?

Making your plans known to others

Discussing your financial arrangements with trusted family members, and keeping them updated on changes you’ve made, is an important part of the process too. Intergenerational financial planning involves managing wealth and financial strategies across multiple generations of a family, focusing on ensuring financial security, preserving assets and facilitating smooth wealth transfer while considering tax implications, estate planning, and family values. They’re really valuable conversations to have.

Take control

Spring cleaning your finances is about more than just getting organised, it’s about simplifying your life, taking control and leaving the best possible legacy for loved ones. Maybe those Swedes really are on to something. We can help you get organised so you can focus on enjoying life.

*The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

People are increasingly seeking financial guidance on social media. While financial influencers – or ‘finfluencers’ – can be useful in raising awareness around financial matters, there is also a darker side to the growth of unregulated advisers.

Social media age

In the UK, more than one in four people use some combination of social media, community messaging apps and online forums for investment guidance, research (Barclays, 2024) shows. Of those who get their investment advice from social media, one in five cited ‘free access to financial experts’ as a reason. Meanwhile, one in four pointed to the fact it was ‘quick and easy to use’ as justification.

Not all advice is equal

Entrusting your financial decisions to social media, however, comes with risks. One significant danger is that many people are failing to carry out checks on the advice they see online. Specifically, the same study found that more than half of UK adults who use social media for investment guidance do not carry out checks to verify the reliability of ‘finfluencers’ and their content. Young people are especially vulnerable, with increasing numbers falling victim to scams, with finfluencers often involved.

FCA crackdown

The FCA has interviewed 20 finfluencers who may be illegally selling financial services products; the FCA has also issued 38 alerts against social media accounts operated by finfluencers which may contain unlawful promotions. In many instances, these influencers are not FCA-authorised and don’t have the qualifications to give financial advice.

Despite the fact anyone can pose as an expert online, fewer than half of those using ‘finfluencers’ always check that the information comes from a reliable source. Social media has its advantages, but making sure the advice comes from an accredited professional is the best way to steer clear of unsuitable investment advice and scams.

*The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

As the end of the tax year approaches, now is the perfect time to ensure you have your financial affairs in order and to double check you’ve taken advantage of all the tax-efficient allowances available to you.

Your Pension

You can contribute as much as you like into your pension, but there is a limit on the amount of tax relief you will receive each year. 

This Annual Allowance is currently £60,000. An  individual can’t use the full £60,000 Annual Allowance where ‘relevant UK earnings’ are less than £60,000, although your employer still could. You may be able to, however, carry forward unused allowances from the past three years, provided you were a pension scheme member during those years. 

For every £2 of adjusted income (total taxable income including all pension contributions) over £260,000, an individual’s Annual Allowance is reduced by £1 (the minimum Annual Allowance is £10,000).

The Lifetime Allowance of £1,073,100 was removed from 6 April 2024. If you have children under 18, a spouse who does not work, or who may not be earning enough to pay Income Tax, you can invest into a pension for each of them.

The maximum annual contribution you can currently make is £2,880 which, along with tax relief, would amount to £3,600 a year.

Your Individual Saving Account (ISA) Allowance

The ISA allowance is £20,000 for the 2024/25 tax year. You can put all the £20,000 into a Cash ISA, or invest the whole amount into a Stocks and Shares ISA or Innovative Finance ISA. You can also mix and match, putting some into Cash, some into Stocks and Shares and the rest into Innovative Finance if you wish. However, the combined amount can’t exceed your annual ISA allowance. From April 2024, it was made possible to subscribe to multiple ISAs of the same type each tax year.

With pension contributions subject to limits, ISAs represent an excellent way of topping up retirement income. There is no Income Tax or Capital Gains Tax (CGT) payable on ISA proceeds. You cannot carry over your ISA allowance once the tax year has ended.

In certain circumstances, investors can use existing holdings to open or top up their ISAs, this arrangement is known as a Bed & ISA. This is a way of transferring assets held outside an ISA into an ISA so that future investment income and growth are sheltered from tax. The investments are sold, cash is transferred into the ISA and the investments are repurchased. Charges apply and you could end up with a CGT liability if the gain you make on selling the asset together with any other taxable gains you make within the tax year exceeds the annual CGT allowance.

A Lifetime ISA (LISA) is another option available to adults aged under 40, or under 50 for existing LISA holders.

Junior ISA Contributions

Junior ISAs are a tax-efficient way to build up savings for your children (and grandchildren) and must be opened by the parent or person with parental responsibility. JISAs can be opened for any child who does not hold a Child Trust Fund (unless the CTF is transferred to a JISA) and who is under 18 and living in the UK. The money can be held in Cash and/or invested in Stocks and Shares.

They work in exactly the same way as your own ISA, however, the maximum investment is £9,000 per child.

Annual subscriptions for ISAs, LISAs and JISAs have been frozen until 5 April 2030.

Gifting For Inheritance Tax (IHT) Purpose

You can make gifts worth up to £3,000 in each tax year. These gifts will be exempt from IHT on your death. You can carry forward any unused part of the £3,000 exemption to the following year but if you don’t use it in that year, the exemption will expire.

Certain gifts don’t use up this annual exemption, however, there is still no IHT due on them e.g. wedding gifts of up to £5,000 for a child, £2,500 for a grandchild (or great grandchild) and £1,000 to anyone else. Individual gifts worth up to £250 are also IHT free.

These are relatively small sums, mbut you should use these up where possible to gradually reduce your overall estate.

IHT Update

During the Autumn Budget 2024, the freeze on IHT thresholds (£325,000) has been extended to 2030. From April 2027, pension pots will be considered part of taxable estates. This significant shift is likely to result in more estates facing IHT, especially for those who have relied on pensions as a tool for inheritance planning. Business Property Relief (BPR) and Agricultural Property Relief (APR) are also seeing changes, with relief for assets over £1m reduced to 50% from April 2026. This reduction could impact succession planning, particularly for small business owners and family farmers.

Using Your CGT Allowance

Every individual is entitled to a CGT annual allowance which is currently £3,000 (£1,500 for trusts). You can’t carry forward this relief and so you may look to crystallise gains up to this amount before the end of the tax year. Capital losses can also be used to offset gains.

Above the CGT exemption, tax is payable at 18% for basic rate tax-payers and 24% for higher rate tax payers. These rates were increased from 10% and 20% respectively during the Autumn Budget. The taxable gains on residential property are taxed at 18% and 24% respectively.

 Assets can be transferred between married couples and civil partners without incurring a gain until the assets are subsequently disposed of. The disposal could then use both their annual exemptions.

The rate for Business Asset Disposal Relief and Investors’ Relief (currently 10%) will increase to 14% from 6 April 2025 and then to 18% from 6 April 2026.

Using Your Dividend Allowance

For the current tax year, investors can earn up to £500 in dividend income tax-free.

How much tax you pay on dividends above the Dividend Allowance depends on your Income Tax band:

Basic rate: 8.75%

Higher rate: 33.75%

Additional rate: 39.35%

*The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The information contained in this guide is based on our understanding of current allowances and rates at 05.11.24, which could be subject to change.

Many wealthy individuals hesitate to discuss financial planning due to fears of family disagreements, with 10% avoiding the topic altogether and 27% finding it uncomfortable (Rathbones).

However, this reluctance to have a discussion could lead to future misunderstandings, as family members may have unrealistic expectations about their inheritance. Only 12% of wealthy individuals said they regularly discuss financial plans with their family and 23% want to but struggle to start the conversation.

Generational differences add to the tension
Nearly half of those under 35 said they expect to receive an inheritance, while 10% of those over 50 worry their family will be disappointed by their actual plans. Older generations are also more hesitant to talk about money, with 27% of those over 50 believing younger generations are more comfortable discussing financial matters.

Regional variations in financial pressures
It’s not just inheritance that causes people to stress about money. Another survey (Arbuthnot Latham, 2024) found the three main causes of financial pressure were: maintaining a certain lifestyle later in life, the value of investments and how much tax might be payable. Wealthy Londoners were found to be under the most financial pressure, with 88% experiencing financial stress. Of these, 20% worry about their finances constantly and nearly another 20% report worrying most of the time. The East of England followed a close second with 85% admitting persistent fear about the health of their finances.

Open and honest discussions
Whatever your level of wealth, having open and honest discussions about money and inheritance could ease your financial stress, helping your family to avoid future disappointment and ensuring everyone understands the reasoning behind the financial decisions you make. While these conversations may be uncomfortable, they could help to reduce your financial stress in the long run as well as being essential for preventing shocks for your family. Break the taboo and have open conversations with your loved ones about your financial circumstances and inheritance plans, allowing you and your family to take control and make necessary financial arrangements now that will help to ensure that you’re in good stead for the future. We can help.

*The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning.

As we step into 2025, now is the perfect time to set your financial plans in order. With changes on the horizon – like many pension pots becoming subject to inclusion in Inheritance Tax (IHT) calculations from April 2027 – it’s wise to prepare early.

Financial wellbeing involves having a positive relationship with your money, feeling secure and in control of your finances, enabling you to make the most of your money while also being able to cope with the unexpected. Here are some essential steps to help secure your financial future, protect your loved ones, and improve your wellbeing – all great resolutions for 2025!

Pension contributions
How’s your retirement plan coming along? Thinking about your pension, the underlying assets, your risk tolerance and the level of contributions you make is a good starting point to set you on the right track to enjoy the retirement you deserve.

Plan ahead for IHT
Tune into gifting rules and allowances, and consider gifting assets now to benefit from the seven-year IHT rule, where gifts made seven years before passing away are usually IHT-exempt. This can significantly reduce the tax burden on your estate.

Update beneficiary forms
Ensure your pension and other beneficiary forms are up to date, reflecting your latest wishes. Even though there is no IHT between spouses, including pension pots, keeping beneficiaries current will prevent complications.

Place life insurance in trust
This simple move keeps the payout outside of your estate, making it IHT-free for beneficiaries. It’s an easy way to maximize the benefit your loved ones receive.

Engage the whole family in financial planning
Discussing financial plans with family helps ensure everyone understands the long-term strategy. By involving your family, you can clarify intentions, avoid misunderstandings, and foster a sense of shared financial responsibility. We can help with intergenerational financial planning and conversations.

Think long term
Avoid hasty decisions. Focus on a stable, long-term financial strategy and work with us to navigate complex issues like IHT. By following these steps, you can create a well-rounded financial plan, ensuring peace of mind for you and your family. We believe in the importance of taking control and talking things through. Life is demanding, focusing on a few small changes can make a big difference, let’s tackle 2025 head-on together.

*The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

A couple of months have passed since the Autumn Budget, a significant milestone for the Labour government. A comprehensive set of measures impacting individuals and businesses were announced, featuring £40bn in tax increases. Key announcements involved Inheritance Tax, Capital Gains Tax, domicile status, VAT on private school fees, Stamp Duty and Income Tax thresholds.

Inheritance Tax (IHT)

Following weeks of speculation, changes to IHT were widely expected. The freeze on IHT thresholds at £325,000 has been extended to 2030 and, from April 2027, pension pots will be considered part of taxable estates. This significant shift is likely to mean that more estates will be subject to IHT from the 2027-28 fiscal year, impacting those who have relied on pensions as a tool for inheritance planning. Reviewing your retirement and estate planning now, ahead of this change, is advisable.

Business Property Relief (BPR) and Agricultural Property Relief (APR) are also seeing changes. From April 2026, the first £1m of combined business and agricultural assets will not be subject to IHT; for assets over £1m IHT will apply with 50% relief at an effective rate of 20%. This reduction could impact succession planning, particularly for small business owners and family farmers.

Capital Gains Tax (CGT)

CGT increases were announced, with the basic rate moving from 10% to 18% and the higher rate from 20% to 24%. These changes were effective from 30 October 2024. Additionally, the CGT rates on carried interest will rise to 32% from April 2025, with further reforms scheduled from April 2026.

The rate for Business Asset Disposal Relief and Investors’ Relief will increase to 14% from 6 April 2025 and then to 18% from 6 April 2026. The lifetime limit for Investors’ Relief was reduced to £1m for all qualifying disposals made on or after 30 October 2024, matching the lifetime limit for Business Asset Disposal Relief.

Non-domiciled (non-dom) status

The familiar non-dom tax regime will be phased out from April 2025, to be replaced by a residence-based scheme. This includes ending the use of offshore trusts to shelter assets from IHT and scrapping the planned 50% tax reduction for foreign income in the first year of the new regime. Individuals who opt in to the regime will not pay UK tax on foreign income and gains (FIG) for the first four years of tax residence. To incentivise investment, the Temporary Repatriation Relief will be extended to three years, offering reduced rates on gains and income for wealthy investors considering bringing assets into the UK.

VAT on private school fees

As indicated in the Party’s election manifesto, the Chancellor confirmed plans to introduce VAT on private school fees (except for children below compulsory school age) from January 2025 and to remove private schools’ business rates relief from April 2025.

Stamp Duty

The Stamp Duty surcharge on second homes and investment properties will increase from 3% to 5% above standard residential rates, effective immediately. This change is expected to temper demand in second homes and the buy-to-let market, particularly in high-value areas like London.

Income Tax

The Income Tax Personal Allowance and higher rate threshold remain at £12,570 and £50,270 respectively until April 2028. From April 2028, these personal tax thresholds will be uprated in line with inflation.

Investments

• The annual subscription limits will remain at £20,000 for ISAs, £4,000 for Lifetime ISAs and £9,000 for Junior ISAs and Child Trust Funds until 5 April 2030. The government has confirmed it will not proceed with the British ISA due to mixed responses to the consultation launched in March 2024
• The starting rate for savings will be retained at £5,000 for 2025/26
• The Enterprise Investment Scheme and Venture Capital Trust schemes have now been extended to 2035.

Bottom line

If you have any questions, please get in touch. We’re here to help you understand the impact these changes could have on your specific circumstances and to help you adapt your financial strategies to ensure you stay on track towards your goals. With the 2024-25 tax year end ticking round, we can talk it through.

*The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning.

Over the years, a number of notable trends, such as increased longevity and individuals taking on greater responsibility for their pension provision, have clearly altered the retirement landscape significantly. Now, new trends look set to further change the face of retirement, adding complexity to the retirement planning process and making early planning ever more essential.

 

Multi-retirement households

One of the new trends relates to families with more than one generation retired at the same time. A key impact of this trend will be the extra strain placed on families’ finances leaving many households needing to reassess retirement plans to navigate a multi-retirement reality.

Age gap relationships

Further complications also arise when there is an age gap in a relationship, as this means each partner will generally be looking at a different retirement timescale. Such a situation also heightens the need to plan at a family level, as it will typically mean other surrounding

generations are at different life stages too, potentially adding greater complexity to family structures.

Open and honest

Discussing and planning for retirement has always clearly been vital but growth in multi-retirement families and age gap relationships makes this even more important. Open and honest conversations relating to retirement expectations need to take place between partners and with family, and key decisions over expected retirement timings and which family members will require financial support need to be discussed and agreed.

The future can be bright

While these trends will certainly change the face of retirement for many families, one thing that won’t change is our support. If you have any concerns about retirement, get in touch and we’ll help you create a plan to ensure a bright financial future for both you and your family.

 

*The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.