26 March 2009
You and the Law - eBulletin
Financial planning - how to save money
In February we held two financial planning events: one at Bramley Golf Club, Surrey and the other in Wimbledon for clients of our new Wimbledon Village office.
Chris Thurlow, Philip Kingscott and Shaun Parry-Jones were joined by Duncan Gwyther of Citi Quilter and Christopher Sugg of Fidelity Investments. They discussed the current economic climate and looked at ways to minimise tax liability through careful tax planning, prior to the Tax Year end on 5 April.
There are many ways to save tax that are worth exploring, and with our taxes likely to increase significantly in the future it is more important than ever to ensure your assets are managed as tax efficiently as possible.
It is estimated that we waste £9 billion a year in tax that could be saved with simple tax planning such as the correct use of personal, ISA and Capital Gains allowances. In the right circumstances you may be able to make tax-efficient investments into pension plans and increase the standard tax relief from 20% to 38% for a basic rate tax payer and from 40% to 52% for a higher rate tax payer.
Increasingly people have been holding off making substantial gifts during their lifetime due to rules exposing recipients of assets to potentially large Inheritance Tax payments if the person making the gift dies within seven years.
However, as property and share price values are dropping the risk of exposing beneficiaries to larger inheritance tax payments is now reducing. The arrangement can be particularly beneficial in families where younger members cannot source loans or funds needed to get on the housing ladder for example.
Shaun and Chris, discussed the latest thinking behind discretionary trusts – once all the rage – and how to use one if you have built it into your will, as well as the surprisingly high nil rate band allowance widows and widowers can end up with nowadays.
Philip, Shaun or Chris would be delighted to discuss your investment, tax planning, wills or Inheritance Tax requirements: call Philip or Shaun on 01483 887766, or Chris on 0208 947 8171. Alternatively you can contact them on philip.kingscott@hartbrown.co.uk, shaun.parry-jones@hartbrown.co.uk, or chris.thurlow@hartbrown.co.uk