Insights 2018-04-13T15:09:32+00:00

Latest Insights

13th April 2018

When life assurance leads to a tax charge on pension death benefits.

It is not uncommon for beneficiaries and their executors to find that pension benefits are subject to an unexpected lifetime allowance tax charge. This may be due to a pay-out from a death in service scheme, which may seem odd to those who have not yet seen this in practice.

In this Briefing Note we highlight how those potentially affected – higher earners with significant pension assets – should do to avoid this additional tax charge on death.

14th March 2018

Unused income tax relief on pension contributions; use it or lose it.

Carry Forward could allow an individual with adjusted income of £210,000 or more to benefit from up to £45,000 of income tax relief on previous years’ unused pension contribution allowances (known as annual allowances).

In this Briefing Note we explain in general terms how Carry Forward works.

7th February 2018

Bitcoin or big con?

The buzz surrounding Bitcoin has grown to new levels in recent months. But is it a new currency and could it possibly turn into an asset to rival the likes of gold? Is it worth investing in Bitcoin?

We give a balanced, simple-terms explanation of Bitcoin’s origins, its rise from obscurity and what the future might hold for cryptocurrencies.

25th January 2018

The Pension Annual Allowance

The 6 April will re-set the clock on the annual pension contribution allowance. It’s therefore the time of year to work out what additional income tax relief may still be available from pension contributions. Relief at higher rates of income tax can be significant.

But those on higher earnings are subject to a tapering of their Annual Allowance. It’s not a straightforward calculation, with plenty of blind spots which could lead to penalties on excess contributions.

This quick overview of the Annual Allowance highlights some of the pitfalls for higher earners and why they should seek advice.

23rd November 2017

2017 November Budget Summary

Despite the palpable Brexit-induced tension in Westminster and amidst lacklustre economic data, the Chancellor has managed to deliver a Budget devoid of any major upsets or surprises.

Please find attached our overview and highlights of the recent Budget announcement.

1st November 2017

The hidden risk of cash

Investors, flesh and bone ones at least, have a tendency to hoard cash due to an innate aversion to loss.

Whether it’s stuffing money under the mattress or leaving large deposits untouched for years in a bank account, we explore both the obvious and hidden risks associated with such behaviour.

18th October 2017

Business loan protection

Good risk management includes planning for events which might seem unlikely today but which could have a huge impact on the business.

Yet a recent report by Legal & General shows that 35% to 48% of UK SMEs do not have adequate cover to protect their debts in the case of death of a shareholding director.

Here we explain why business loan and key person protection plans should form part of a company’s risk management plan.

28th September 2017

Pensions and the future of higher rate tax relief

It is hard to predict future changes to the government’s policy on pensions but the direction of travel indicates that the government may soon target pension tax relief for higher rate tax payers.

In this Briefing Note we seek to understand recent policy decisions and revisit why, for now, pension planning still plays an important part in tax planning for higher rate tax payers.

7th September 2017

Why diversification is a ‘free lunch’

Here we investigate how diversification of investments, if deployed correctly, helps maintain the balance between investment risk and potential returns.

At some point, we may have all been tempted to throw caution to the wind and pour savings into the next hotly-tipped success story such as ‘‘Amazon’’ or ‘‘EBay’’. Bar for the lucky few, investing in just one stock can prove to be very costly. In a field of thousands of companies, investors are faced with the significant risk of picking future losers, rather than one of the few elusive winners.

25th May 2017

Why staying unemotional pays off

It is a natural instinct to panic when times get tough, with regards to life or investing. This article looks at what flows of money in and out of funds tell us about investment behaviour during periods of increased market volatility. In particular, we illustrate how acting irrationally can lead to poor investment decisions and possibly even losses.

Archives

2017

16th March 2017
2017 Spring Budget Summary    download

27th February 2017
Life assurance – The guaranteed way to cover inheritance tax liabilities?    download

The value of investments and the income arising from them can go down as well as up and is not guaranteed, which means that you may not get back what you invested. Past performance is not necessarily a guide to the future. The information contained in this website does not constitute advice. The FCA does not regulate tax advice. The FCA does not regulate advice on Wills and Powers of Attorney. The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service please visit www.financial-ombudsman.org.uk.