Professional Financial Planning is the process which aims to help you realise your ambitions. As professional financial advisers we can help you make informed decisions about your financial future, short, medium and long term.
You will almost certainly have plans of one kind or another - buying a home, starting a family, living abroad, perhaps retiring, but such ambitions have financial implications and you can't leave it all to chance. Careful planning aims to help turn your plans into...
Health Insurance is probably one of the most important types of insurance you can own. Without it, an illness or accident can have serious financial implications for you and your family.
Most people will be aware that Health Insurance can cover the cost of private medical treatment for any acute conditions you may suffer in the future. However, there are a number of other types of Health-related Insurance policies which are worthy of serious consideration.
The main purpose of Life Assurance is to provide money for those people who may depend on you financially, in the event that something should happen to you. These people could include family members or business partners.
This type of protection plan is called life 'assurance' because death is at some point inevitable, which means that you are 'assured' that the plan will definitely pay out one day, so long as you have paid all the premiums and you die whilst the plan is in force.
All businesses are exposed to risks in their day-to-day operations. Without insurance cover to provide protection against some of these risks, businesses would find it difficult to operate efficiently and profitably.
Adequate insurance is therefore not a luxury - it is an absolute necessity.
These days, many people are not afraid to seek compensation. No win - no fee advertisements encourage claims, and businesses need to protect themselves against liability claims that could run into millions of pounds.
Accident, Sickness & Unemployment insurance (ASU), is designed to provide you with an income to meet your outgoings in case of absence from work due to illness, an accident or redundancy.
With an accident, sickness & unemployment policy you pay for a monthly premium for the level of cover you need, and if you lose your job or can't work, you will receive that amount of money each month to cover your costs and spend as you wish. Policies usually pay out for up to a year or until you...
If you are in full time employment you should consider the benefits of a redundancy cover plan. We are all vulnerable to the potential of involuntary redundancy and the good old days of knowing that you have 'a job for life' seem to be gone.
Part of the payment protection insurance - PPI - family, redundancy cover provides a tax free monthly amount that can be used to help you manage financially in the event of involuntary unemployment.
Your mortgage is probably the largest financial transaction and commitment you are likely to undertake. Surely then you should seek mortgage advice which is individually tailored to your needs and requirements?
We are not tied to any particular lender, which means that we have the ability to act on your behalf, representing your best interests, in order to establish the most appropriate mortgage solution for you.
When you retire you still need food and shelter as an absolute minimum, but of course you will want to maintain the lifestyle to which you have become accustomed, so unless you can guarantee a large windfall, you need to provide yourself with a secure income for the rest of your life.
A well prepared pension plan which is regularly reviewed should go some way to providing this.
When someone talks about savings and saving money, it could be referring to a piggy bank or a high interest deposit account. Savings are effectively cash or cash instruments, such as deposit accounts, term bonds etc.
Investing is what you do with the savings you have - if you are looking to generate a greater return on your money than is available to you through your savings instruments.
Taxation can be very complicated and the rules, reliefs and allowances often change, so it is worth obtaining a clear grasp of how these taxes work by discussing with a professional adviser the most efficient way to arrange your finances.
An expert will be able to help you plan your taxes in advance, and come up with effective strategies that will use the lawful reliefs and allowances to minimise the amount you have to pay.
Wealth, just like your health, must be carefully preserved. Your assets need to be protected against the potential threats of erosion by taxation, the effects of inflation and investment risks.
Whatever your level of wealth, there is nothing wrong in making the decision to prepare a risk aversion strategy. Risk aversion is a reasonable and prudent strategy for anyone who is sure that they already have ample to provide for themselves and their family into the future.
Capital Gains Tax Allowances, Liabilities & Reliefs
In the tax year 2019/2020, an individual's CGT allowance is £12,000 (2018/19 - £11,700).
This means you do not have to pay tax on gains from buying and selling shares or other investments during the tax year up to that amount. You do not normally have to pay tax on any gain you make when you sell your main residence.
Capital Gains Tax Allowances, Liabilities & Reliefs
In the tax year 2019/2020, an individual's CGT allowance is £12,000 (2018/19 - £11,700).
This means you do not have to pay tax on gains from buying and selling shares or other investments during the tax year up to that amount. You do not normally have to pay tax on any gain you make when you sell your main residence.
2019/2020
2018/2019
For standard rate taxpayers(1)
10%
10%
For trustees and higher/additional rate taxpayers(1)
20%
20%
Annual exempt amount - individuals
£12,000
£11,700
Annual exempt amount - trusts
£6,000
£5,850
Entrepreneurs' relief lifetime limit
£10,000,000
£10,000,000
Entrepreneurs' rate
10%
10%
(1). These rates do not apply to transactions involving residential property (the sale of second homes) or carried interest (the share of profits or gains that is paid to asset managers). CGT rates for these transactions remain at 18% (standard rate taxpayers) and 28% (higher rate taxpayers).
If you have used your CGT allowance, don't forget your Individual Savings Account (ISA) allowance. Both a 'Cash ISA' and a 'Stocks and Shares ISA' can shelter capital gains on investments, for example unit trust holdings, worth up to £20,000 per year.
From 6th April 2008 Taper Relief was removed and a new relief called 'Entrepreneurs' relief' was introduced to reduce the Capital Gains Liabilities on the disposal of certain business assets.
CGT is a tax on capital 'gains'. If when you sell or give away an asset it has increased in value, you may be taxed on the 'gain' (profit). This doesn't apply when you sell personal belongings worth £6,000 or less or, in most cases, your main home.
When do I have to pay CGT?
You may have to pay CGT if, for example, you:
sell, give away, exchange or otherwise dispose of (cease to own) an asset or part of an asset
receive money from an asset - for example compensation for a damaged asset
You don't have to pay CGT on:
your car
your main home - provided certain conditions are met
ISAs
UK Government gilts (bonds)
personal belongings individually worth £6,000 or less when you sell them
betting, lottery or pools winnings
money which forms part of your income for income tax purposes
Important Considerations:
if you are married or in a civil partnership and living together you can transfer assets to your husband, wife or civil partner without having to pay CGT
you may not give assets to your children or others or sell assets to them cheaply without having to consider CGT
if you make a loss you may be able to make a claim for that loss and deduct it from other gains, but only if the asset normally attracts CGT
if someone dies and leaves their belongings to their beneficiaries, there is no CGT to pay at that time - however if an asset is later disposed of by a beneficiary, any CGT they may have to pay will be based on the difference between the market value at the time of death and the value at the time of disposal
For further information about the 2018 Budget changes please click here.
INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM TAXATION, ARE SUBJECT TO CHANGE.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE TAX PLANNING.
TAX TREATMENT IS BASED ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN THE FUTURE.
