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.

Reassuringly for investors, the latest batch of projections from economic soothsayers continues to predict a period of steady, if unspectacular, global growth. The forecasts also highlight a number of economic concerns including ‘sticky’ inflation, large budget deficits and geopolitical uncertainties, which could inevitably create some investment challenges.

Growth rates beat expectations

Economic growth figures released over the summer generally proved stronger than analysts had expected, particularly in relation to Europe and the US (in Q2). And while economic momentum is expected to soften across the second half of this year, forecasters are still predicting steadyrates of growth. The latest figures from

the International Monetary Fund (IMF), for instance, forecast global growth of 3.2% for the whole of 2024 with the rate rising slightly to 3.3% next year. 

Inflation persistency 

The IMF’s musings were contained in a report entitled ‘The Global Economy in a Sticky Spot,’ which highlighted two prominent near-term risks currently undermining growth prospects. Firstly, the IMF warned that ‘services inflation is holding up progress on disinflation’ which could result in interest rates remaining ‘higher for even longer.’ Secondly, a deterioration in public finances has left many countries in a position of fiscal vulnerability and this is ‘magnifying economic policy uncertainty.’

Geopolitical uncertainties

In what was dubbed ‘the year of the election’, geopolitical uncertainties unsurprisingly continue to be a key concern as well. Indeed, their impact on global growth prospects can only be expected to rise in the near-term as the US presidential election looms ever closer. Continuing geopolitical conflicts and the rise in geoeconomic competition is also creating ongoing challenges for the global economy.

Elements at play

Economic resilience has flowed through to central bank monetary policy as global institutions have largely adopted a cautious approach. Slower but still positive growth, lower inflation and interest rate reductions are a positive combination for investors. Whatever uncertainties do lie ahead, one investment fundamental remains constant: long-term investors are best served by holding a well-diversified, multi-asset portfolio based on sound financial planning principles and thorough research. We’ll help ensure your portfolio remains well-balanced and with the right mix of assets; we’re always focused on finding investment opportunities.

*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 one million individuals have entered self-employment since 2020 (IPSE, 2024), so it is important to ensure you are still planning for retirement by making regular pension contributions.

A growing sector

In 2023, there were 4.2 million people in the UK’s solo self-employed sector – 3% higher than the previous year. Overall, the solo self-employed contributed £331bn to the UK economy, up from £278bn in 2022. But, concerningly, 45% of freelancers are not saving into a pension (IPSE, 2023).

Make it a priority

We know it can be easy to forget about your pension, seeing as employed people are auto-enrolled into a pension scheme by their workplace, but if you are freelance it is your responsibility. The sooner you start saving for retirement, the more you can grow your investment and benefit from tax relief on contributions (within limits). Putting it off only means that you will need to save more in a shorter amount of time if you want a comfortable retirement.

Contribute regularly

Decide on a minimum monthly contribution that feels manageable for you. Your income may fluctuate from month to month – that’s why you can put more money into your pot when you’re doing well.

Seek advice

One benefit of being self-employed is that you have more freedom when it comes to choosing your pension. We can help you plan ahead.

*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.

Purpose has lately become a buzzword for investors and companies. Whether ‘mission-oriented’ investing excites you or makes you want to run for the hills, aligning your wealth with your values and interests can bring rich rewards.

Give and grow

Historically, wealthy people wanting to make a difference have done so through philanthropy. In response to major challenges from climate change to poverty, some billionaires have devoted large chunks of their wealth to finding and funding worthy causes. 

Many wealthy families are motivated simply by a desire to make a positive difference in the world. However, doing good does not always mean compromising returns; with the rise of impact investing, more people are combining the pursuit of financial returns with societal benefit.

Investing for world peace

The rise to prominence of environmental, social and governance (ESG) investing brought opportunities to make money while having a positive impact. ‘Investing for Global Impact,’ a report released by Barclays, found that 68% of ultra-high-net-worth private investors with an average $730m in assets felt that philanthropy and impact investing should be used in tandem to generate impact. Indeed, some 58% of respondents said they are already seeking to coordinate their portfolios into tackling common aims and themes across both (Barclays, 2023).

What’s your impact?

The modern purpose-driven investor has abundant ways to make a difference. Wealthy investors cite a responsibility to make the world better as one reason for choosing impactful investing. 

With a clear-minded strategy that considers wealth holistically, investors can look to pursue opportunities and build a family legacy. A deeply personal process, the challenge is to balance a wide breadth of factors from what the world needs, to your own circumstances and motivations. For you, your family and society, it can prove enormously enriching.

*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 new report (CapGemini, 2024) suggests the wealth of‘high-net-worth-individuals’ (HNWIs) – grew by 4.7% in 2023, with the HNWI population increasing by 5.1% to 22.8 million globally.

What’s behind the increase?
Global economic uncertainty, higher interest rates and rising political tensions led to significant declines in HNWI wealth (3.6%) and population (3.3%) in 2022. However, the economic picture improved in 2023, as global equity markets recovered, and investors focused on the prospect of interest rate cuts.

CapGemini confirmed, ‘Despite ongoing interest rate uncertainty and rising bond yields, equities surged along with the tech market, fuelled by enthusiasm for generative artificial intelligence (Al) and its potential impact on the economy.’ North America led the recovery, with significant HNWI wealth and population increases. Asia-Pacific also saw growth, while Europe experienced more modest gains.

What are their priorities?
As the HNWI population becomes younger, investment priorities have also shifted from defensive investing towards generating longer-term wealth. Value-added services, such as tax planning and intergenerational transfer are increasingly sought after.

What influences their decisions?
Over 64% of HNWIs polled said emotional or cogitative biases influenced their decision making. This includes seeking information from sources that aligned with their views, seizing opportunities without due consideration, holding onto underperforming investments for too long, and playing safe, missing out on potential opportunities.

These biases are particularly impactful during personal life events such as marriage, divorce or retirement, as well as times of broader economic turbulence, such as volatile market conditions and geopolitical uncertainty.

The findings confirm HNWIs need access to good quality, highly personalised financial advice now more than ever. Not only can we help to create bespoke strategies to suit individual and family needs, we can also overcome biases in favour of longer-term financial plans.

*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.

According to research (Arbuthnot Latham, 2024), 81% of the UK’s wealthiest individuals are

‘stressed’ about their finances, suggesting financial wellbeing is about more than just the totality of your wealth. So, virtually everyone has concerns about what their financial future will look like.

Planning for the future

The prime concerns for individuals centred around future planning and retirement, specifically maintaining a comparable lifestyle in later life (51%), the value of their investments (39%), providing for future generations (25%), the tax burden (24%) and falling victim to fraud (22%).

Interestingly, almost three in five wealthy individuals (59%) in the UK are considering relocating overseas, to enjoy what they regard to be an improved standard of living (36%), lower property costs (28%) and a more favourable tax regime (21%). 

The importance of financial wellbeing

Financial wellbeing is more than just having large sums of money. It’s a state of feeling secure and in control of your finances, both now and in the future. 

According to the Global Financial Wellbeing Report 2024 (nudge, 2024) , across all the countries surveyed, people’s top goal is to ‘feel secure’ (94%), noting that people who feel financially confident are ‘two times more likely to have goals, ambitions and dreams for their life.’

Finding your purpose

While money can’t buy you happiness, as the saying goes, it can give you security and freedom. But to get there, you need to have a plan. A good starting point is to work out what’s most important to you and what you want to achieve. Wealth has the capacity to create a powerful purpose within our lives, provided we are able to unlock its true value by understanding your ‘why’. Once you’ve established this, can create a plan unique to you that you can work towards with purpose.

Unlocking the real value of your wealth

We can help you to develop a clear understanding of what you want to achieve with your wealth, as well as provide you with the support and expert advice to help you develop a financial strategy that brings you closer to achieving those goals. There’s no point in worrying about your financial future when you could be taking valuable steps now to take control and face the future with confidence.

*The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.