Setting up a suitable financial plan often involves reducing the effect of these three taxes. In summary the taxes do “what they say on the label” and apply as follows;
All of the above taxes have tax free allowances and some financial products are exempt from certain taxes (i.e. pensions and ISAs are exempt from Capital Gains Tax). The issue of taxation applies to all aspects of financial planning whether we are looking at pensions, investments, business protection etc. Advice regarding Wills and Trusts is often established with the sole purpose of reducing the effect of Inheritance Tax. Therefore we will always consider the tax efficiency of any recommendation to ensure that your money works most efficiently for you.
Taxation is a complicated subject, we respect the knowledge and expertise of other individuals and firms that specialise in this area of work such as accountants and tax planners. With this in mind we welcome the opportunity to work alongside your Accountant or Tax Planner to ensure that the efficiency of any plan is as effective as possible. Also should you require the services of an accountant or tax planner we are happy to refer you onto firms who provide these services and who from our experience offer a professional service which we are happy to recommend.
For more information on how we act on behalf of our clients, our payment structures and terms please read our Retail Client Agreement (here).