Financial Advisers Compared | Tax Planning
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Tax Planning

The benefit of good financial planning can be invaluable, it should save you both money and time and provide you with a peace of mind.


Tax is often thought of something that is quite complicated in fact with the generous personal pension contributions, tax can work to our benefit when you are investing money.

Other areas to consider to Save TAX when Saving and Investing:
Putting savings into a Cash or Stock and Share ISA where the current limit is £15,240.

A Cash ISA operates just like a normal savings account, expect the interest rate is tax free.

A Stock and Share ISA’s is a tax shelter which you can take out every year to your annual limit of £15,240 and invest in the stock market. Any growth in the investment is sheltered from Income and Capital Gains Tax.

Retirement Planning making pension contributions and using allowances as discussed in the Investment and Pension Tab can also provide significant tax advantages.

Inheritance Tax Planning which is really planning ahead, using gifts, and the seven year rule.

If your investments are managed on a discretionary basis by an investment manager the taxation planning of your investments such as the annual ISA subscriptions should automatically be applied, this will be part of your ongoing fee. If your investments are managed through the independent financial advisor depending on their charging structure there may be a separate initial fee of 3% (£457.20 plus investment changes) on the £15,240 ISA each year, as this is regarded as a new investment.

For more information on Taxation Please refer to the Government Website Money Advices Service.

Inheritance Tax planning

Inheritance tax planning is an area of your financial affairs where financial planning can save you time, money and provide you with peace of mind that your affairs have all been planned for are in place.

It may sound strange, but often inheritance tax planning starts with the setting up a WILL, this will not only make certain matters are dealt in a tax-efficient manner, but also to your wishes.

It is also worth considering if you will actually fall in to the inheritance tax bracket, as each individual has a tax free allowance of £325,000 (nil-rate band). IHT applies to the value of the estate above this value at 40% on death. If you are married it transfers between husband and wife, providing a complete nil rate band £650,000 anything above this will be taxed at 40%.

There are many ways to limit the liability of inheritance tax, below is a brief detail (not advice). If you feel you have a potential liability we would be happy in assisting you to find an appropriate independent financial advisor to provide advice on the matter.

You Could;

Take advantage of exemptions – You can give away up to £3,000 a year (annual allowance) this will be immediately exempt from IHT. There is also a small gift exemption, meaning you can give up to £250 to as many people as you like. Wedding gifts up to £5,000 for parents, £2,500 for grandparents and £1,000 for everyone else are eligible as well, as are donations to qualifying charities.

Gifts of cash or assets worth more than the annual allowance will also be exempt as long as you survive for seven years from the date of the gift. These are known as potentially exempt transfers.

Take out life cover – Depending on the size of the potential inheritance tax liability, one of the simplest ways of providing funds to pay the inheritance tax bill is to establish a whole-of-life insurance policy. This is designed to pay a sum equal to the tax liability into trust where the money is exempt from IHT and will be available for beneficiaries to pay the tax due. The payment of the death benefit will happen immediately following death and the funds will be available to pay the tax without any need to wait for grant of probate.

The Use of Trusts – It is possible to gift an amount up to the nil-rate band of £325,000 per individual into discretionary trust (double this amount for a married couple) and this can then be repeated every seven years.

The trust is managed by an Investment Management firm or Independent Financial Advisor through the duration of trusts life. The investment strategy and fees are between the two are detail in Fees and Performance as example.

More can be gifted into a discretionary trust during the course of its life, but anything above the allowance would incur a lifetime transfer tax of 20 per cent. Trusts can also allow CGT rollover.

There are many other ways to limit your liability for inheritance these are just a few examples, if you would like more information regarding Inheritance Tax Planning Advice please Click Here.


Protection products are really designed to help minimise the impact for both you and your family should the unthinkable happen and provide monetary support during that time.

Income Protection is an insurance policy which is designed to pay out if you are unable to work due to illness, injury or redundancy.

Mortgage Protection is an insurance policy which is designed specifically to cover the mortgage loan repayments against the risk of having to take time of work as a result of an accident, sickness or unemployment.

Life Cover is an insurance which is set up to protect your loved ones who are financially dependent on you should you die during the length of your policy. If you required it life cover can provide a lump sum that would pay of your outstanding mortgage and provide your family with ongoing capital for expenses.

For more detail on Protection Products please refer to Money Advice Service website.