Wealth planning is not just about the long term. There are also short and medium-term challenges that you may need to review, including the recent changes to personal tax, residency tests and pensions provisions.
In this video Alison Hill explains some key financial issues to consider in the year ahead as you look to maximise your income, invest and provide for your future.
The 45% additional rate (over £150,000) now applies.
A new statutory residence test came into effect on 6 April 2013.
If you are an internationally mobile employee, the new rules bring welcome certainty in how your UK residence is determined. But, the changes could have a less certain impact, therefore your residence position should be reviewed to see how it is affected by the new rules and whether steps can be taken to strengthen the position.
Key factors determining residence are:
If you think these new rules will have an impact on your residence position, please contact us to discuss this.
Pensions remain one of the most tax efficient investment vehicles available in the UK.
We can help you assess the benefits available from investing in a pension and provide tax and/or investment advice.
Taking this kind of advice can be beneficial as the rules and allowances are changing and complications can arise. So it’s more important than ever to review your position and make sure that you are maximising the reliefs.
Key pensions considerations:
If you’re in the higher income bracket, your child benefit may be clawed back via your self-assessment tax payment or PAYE coding unless you elected not to receive child benefit before the beginning of the tax year – if one householder earns over £50k then it is clawed back from the higher earner. A parent earning between £50k and £60k, with two children, would suffer a 57.53% marginal tax rate (with four children this rises to 71.47%). A liability to this high income child benefit charge may mean you having to complete a tax return even if you have no other requirement to do so.
Determining what the correct investment strategy is for you will depend upon your unique circumstances. Our priority is helping you preserve and grow your wealth through objectively and carefully considered investment strategies.
We can assist with each stage of the investment process including:
Please contact us to learn more about how we can help you meet your investment goals.