We can assist you in the following areas:
GENERAL TAXATION ADVICE
We always try to recommend the most tax-efficient solution, utilising the allowances available to you.
- Annual ISA allowances for tax efficient growth.
- Capital Gains Tax (CGT) allowances, selling assets without tax liability, to potentially move them into a more tax efficient environment.
- Staying within Income Tax Personal Allowances for tax free income payments.
- Use of pensions, where appropriate, to obtain tax relief at your highest rate paid.
- Inheritance Tax (IHT) planning to maximise allowances and mitigate any tax due.
The Financial Conduct Authority does not regulate taxation and trust advice.
To look at the most tax efficient way of investing, using the whole of the market. We will try to source the most competitively costed product based on your objectives, size of investment and the level of service needed.
This may involve the use of a platform, which will allow access to a great number of providers’ funds, not just a single providers’ funds; opening up a wealth of options such as Managed Funds, Model Portfolio Services, Discretionary Management and Bespoke Portfolios.
We have considerable experience providing advice on specialist investments such as Enterprise Investment Schemes (EIS) and Venture Capital Trusts (VCT), which whilst high risk, can provide substantial tax benefits and returns.
The value of your investment can go down as well as up and you may not get back the full amount invested.
Retirement Planning is split into two main parts:
Accumulation of funds during your lifetime. This could involve advice around the many different pension types available to you such as Personal Pensions which can be suitable for most people, and Self-Invested Personal Pensions (SIPPs) which can be used by individuals to purchase more specialist assets within their funds, for example individual shares or commercial property. It can also involve a review of your existing pension schemes of all types. Gracechurch Wealth Management can also provide existing clients with a review of any Defined Benefits (final salary or career average schemes) you may hold.
Decumulation in retirement, when income is needed. The new pension freedom regulations mean that there is more flexibility regarding how funds can be drawn, and advice is needed, now more than ever. Pension funds can now be left to family members in an inheritance tax efficient manner, which needs further consideration when income is to be drawn.
A pension is a long term investment. The fund value may fluctuate and go down, which would have an impact on the level of pension benefits available. Pension income could also be affected by interest rates at the time benefits are taken.
The tax treatment of pensions in general and tax implications of pension withdrawals will be based on circumstances, tax legislation and regulation, which are subject to change in future.
Protection is the most important area of planning but can so often be overlooked.
How would your family cope if you were to pass away? Or became seriously ill preventing you from working for a while? Would the mortgage be paid? Or would you need to downsize and cutback? Lump sum benefits could be provided on death or critical illness, through Term Assurance policies, and an income could also be provided on these events through Family Income Benefits. Income Protection policies protect income in the event of long-term sickness.
INHERITANCE TAX (IHT) PLANNING
For some, Inheritance Tax is not on their radar, after all, it is not you who will be paying the tax bill but rather your estate. However, few people like to see more tax paid than needs to be and more and more estates are over the IHT nil rate bands due solely to the value of the main residence. Inheritance Tax planning aims to maximise allowances and mitigate any tax due; through gifts, trusts, protection policies, IHT efficient investments and pensions. We regularly work with other professionals, such as solicitors and accountants to ensure the best solution. This means we have the full suite of Inheritance tax mitigation strategies at our disposal.
LONG TERM CARE PLANNING
Whilst many consider how their investments can be utilised for Inheritance Tax Planning (IHT), they do not consider what will happen to these investments if they go into care.
What assistance is available with consideration to care homes or care at home services, and what options are available when it comes to paying for care? We have 2 specialists within the firm who can help.
FULL FINANCIAL REVIEW SERVICE
A full financial review provides a holistic look at your circumstances, bringing meaning to what you have acquired to date. This is then compared to your declared objectives and the level of risk you are prepared to take. Any inconsistencies and shortfalls will be highlighted from which a financial plan can be created, leaving you with the peace of mind that comes from knowing your financial affairs are in order and that you have a clear plan going forward.
PENSION REVIEW SERVICE
As the name suggests, such a review would be limited to your pension planning making sense of what you have already, identifying if it is still appropriate to your needs/objectives and looking for ways to make it more efficient. This service can provide you with clarity as to what your likely retirement might look like, enabling you to actively plan rather than leaving matters to fate.
CASH FLOW MODELLING
Many investors either do not have a long-term financial strategy, or they have one but with no mechanism which enables them to assess the likelihood of it being achieved. Without some form of financial strategy/model, it can be very difficult to make sensible financial decisions about critical issues such as:
- How much you can afford to gift, without jeopardising your own standard of living?
- The impact of significant and sometimes unplanned expenditure
- What level of risk you should be taking with your investments?
- How your investment portfolio should be structured so as to maximise tax efficiency, Income, Capital Gains and Inheritance Tax
- Can your financial goals be reasonably met?
In order to better understand these issues, we utilise Cash Flow Modelling (“CFM”) based on your current circumstances and a number of assumptions. CFM is simply a tool which allows you to better visualise your financial future. It allows us to illustrate a recommendation to you but will not be used to make the recommendation; it cannot be relied upon to accurately predict your financial future.
One of the key benefits of financial modelling is that it enables you to consider several “what if” scenarios. This can be achieved by altering the data input into the model to see the different outcomes based on a variety of assumptions.