Tax Planning

We love saving tax.  But the saving of tax itself is not a good enough reason to make an investment decision!

For example, a Higher Rate Taxpayer might be tempted to make a contribution into a Pension Fund of a year’s salary, net of 40% tax.  But if the income from the Pension Fund in the future is also subject to 40% Income Tax then the attraction of making the contribution is considerably diminished.

The gifting of capital more than seven years before death might save an Inheritance Tax bill of 40%.  But the tax saving will have been an expensive luxury if the client needs that capital in later years.

More worryingly, in recent years we have experienced taxes being introduced retrospectively – which can play havoc with the best laid plans!

Tax is an important part of any financial planning but we always ensure that our recommendations are considered and discussed with the client’s solicitors, accountants and – possibly – family, before implementation.