Pensions are one of the most tax-efficient tax wrappers

Tax benefits:

• Tax relief on contributions (up to 45%)

• Tax-free growth

• 25% tax-free cash

• They can pass onto future generations free from inheritance tax

• You could contribute significant sums into a pension every year and potentially use previous years’ unused allowances to contribute even more

• Company contributions can be made gross and reduce Corporation Tax

Why should you review existing pensions?

Many people move jobs or set up their own DC schemes, often:

• The portfolios can be significantly improved

• They are not invested at the correct risk level

• They have to move into a new scheme to withdraw money

• There is no drawdown/income strategy

• They do not allow your beneficiaries to receive the money in the most tax-efficient manner

• They do not allow for all the current ‘Flexi-access benefits’ available in a DC scheme

There are other types of pensions. Whichever pension you have, we can assist. Call us for a free review

Individual Savings Accounts (ISAs) are one of the most tax-efficient tax wrappers. You can invest up to:

• £20,000 annual allowance per tax year per person

Any money held within an ISA benefit from:

• Tax-free growth

• Tax-free income

• Tax-free dividends

• Tax-free capital gains

• A wide investment range

Even though General investment Accounts are not a tax wrapper, managed in the correct manner they can still attract no or very little tax.

The main taxes to be aware of:

• Capital gains tax

• Income tax

• Savings and interest

We set up tax-efficient strategies where we can:

• Use up your capital gains allowance every tax year

• Feed money into more tax-efficient vehicles over the long term

It’s never too early to begin investing and setting up a Junior ISA. Not only does it teach little ones some great lessons, but it can also help them get off to a great start. Therefore, loved ones often set up Junior ISAs for their children, grandchildren, other family members, or friends’ children.

A stock and shares JISA is a great alternative to a cash JISA, which at prevailing rates is likely to earn far less than inflation, and therefore be worthless in real terms in the future.

• £9,000 annual allowance (per tax year according to current rules)

• Tax-free growth

• Tax-free income

• Tax-free dividends

• Tax-free capital gains

Investment bonds are tax efficient investment wrappers. There are 2 main types:

• Onshore bonds

• Offshore bonds

Both offer:

• Up to 5% tax free income for 20 years

Offshore bonds offer:

• Tax free growth

What they could be suitable for:

• Generating a tax efficient income

• Tax efficient growth

• Those already using their ISA allowances

• Inheritance tax planning

• People planning to move abroad

• Tax efficient Investments held within Limited companies

Venture Capital Trusts (VCTs) are specialist tax-efficient vehicles that tend to be suitable for those with high-risk tolerances, for more information go to our Venture Capital Trusts page.

Enterprise Investment Schemes are specialist tax-efficient vehicles that tend to be suitable for those with high-risk tolerances, for more information go to our Enterprise Investment Scheme page.

For more information on BPR go to our Business Property Relief page.