Every client we meet has a unique and varied range of financial planning needs, so it's important to establish priorities as the first step towards creating a meaningful and relevant financial plan.
When it comes to investment planning, one such priority is making sure you're in a position to maximise the tax reliefs and allowances that are available. Here's a useful summary:
Earn up to £1,000 interest on your personal savings tax free, higher rate taxpayers will be
able to earn up to £500
Pay no tax on the first £5,000 of dividend income from your investments (This allowance reduces to £2,000 in the 2018/19 tax year)
Invest up to £3,600 or 100% of UK relevant earnings, whichever is the greater, up to a maximum of £40,000 in your pension every tax year and receive tax relief on those contributions
Make the most of your ISA allowance every year and invest up to £20,000 (in 2017/18)
Review your potential Inheritance Tax liability with the introduction of the Residence Nil Rate Band
Consider whether you could take advantage of the tax efficiencies available from investing in an Enterprise Investment Scheme or Venture Capital Trust. Please note these are specialist investment
options that carry higher risk and not suitable for all investors
Make the most of your £11,300 Capital Gains Tax CGT allowance when selling an asset or investment that has increased in value. Transfer between spouses is currently exempt from CGT.
By gifting assets to your spouse or Civil Partner you effectively double your allowance
To find out more about how we can plan a tax efficient investment strategy please get in touch.
This information is based on our current understanding of the rules for the 2017-18 tax year.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
The value of investments and any income from them can go down as well as up and you may not get
back the original amount invested.