For busy individuals, tax year end can be a good time to bring your personal finances to the top of the pile, at least momentarily taking stock and ensuring not only that you are prepared for the short term, but that longer-term financial goals are also being addressed.
Tax year end
The proactive use of basic allowances can be powerful in helping to grow your wealth. A few of these are noted below, with particular attention paid to a closing window of opportunity for pension contributions:
(i) Pensions. Unused allowances may be carried forward for up to three years. From the 2016/17 tax year, high earners have been limited to contributions of £10,000 pa. The current tax year therefore represents the final opportunity for an individual to carry forward any unused allowance from the 2015/16 tax year when high earners were still entitled to a higher £40,000 pension contribution allowance.
(ii) ISAs (including Lifetime ISAs)
(iii) Capital gains tax exemptions
Further information and additional allowances can be found on our end of tax year checklist at www.saundersonhouse.co.uk.
It is important to take the time to consider and prioritise your future objectives rather than just focusing on the short term. We help support our clients by providing a comprehensive financial planning and investment management service. By considering their financial situation holistically, we help focus on their investment and associated tax considerations, cash flow planning and modelling, pension planning, and inheritance tax and estate planning.
If you have been called to action and are engaging with a new adviser or simply reviewing an existing one, here are a few considerations to bear in mind when evaluating your financial adviser relationship:
- Are they independent or restricted?
- How do they charge and are their costs transparent?
- What resources are available (eg, in-house investment research team; support structure; professionally qualified advisers to the highest standard)
- Do they offer advisory or discretionary investment and can they verify investment performance?
- Ask for references.
If you would find a discussion helpful at this time of year, please get in touch.
Ian McNally, director
020 7315 6513
1 Long Lane
London EC1A 9HF
020 7315 6500