Effective Inheritance Tax planning is a careful balancing act
Once a concern only for the very affluent, Inheritance Tax (IHT) is now an issue for many ordinary families, who may find themselves handing over an unprecedented portion of their estates to the taxman. This shift results from years of house price growth, inflation and stagnant tax thresholds. The Office for Budget Responsibility anticipates that IHT will bring in £7.2 billion in the fiscal year 2023/24[1].
As we approach the end of the current tax year on 5 April 2024, it’s an opportune moment to examine both your personal and business finances to ensure they are structured to optimise your tax efficiency. Despite the ongoing freeze on many tax rates and thresholds, numerous strategies remain for organising your financial matters tax-efficiently.
One of our most potent tools in making substantial strides towards net zero
Over recent years, our comprehension of the climate crisis has significantly transformed. Countries and organisations are becoming increasingly ambitious with their net zero targets, while many individuals are making lifestyle alterations to reduce their household carbon emissions. However, some remain oblivious that pensions represent one of our most potent tools for making substantial strides towards net zero.
Safeguarding your future financial stability and preserving your wealth
Entering into marriage isn’t done with the expectation of it ending in divorce, yet this distressing and strenuous event can be a reality for some. Managing finances may not be your immediate concern during such an emotional upheaval. However, obtaining professional financial advice can aid in safeguarding your future financial stability and preserving your wealth.
In the challenging realm of parenting, an unexpected yet invaluable source of support has emerged – our parents and grandparents. Over the past 12 months, almost 42% of these seasoned family members, affectionately termed the ‘Bank of Family’, have assisted younger relatives with childcare.
Report highlights retirement savings must be inclusive for everyone
Disability significantly affects the financial planning of nearly a third of disabled individuals. This was the key finding of a report that highlighted the additional financial burdens people with disabilities in society suffer[1].
The power of small changes can lead to a path to significant returns
The dream of early retirement is alive and well among the younger generation. Still, to realise this dream, they must prepare to bolster their pension savings by an estimated 15%. A recent study has revealed that approximately one-fifth (17%) of youthful savers aged between 22 and 32 aspire to retire before reaching 60. Intriguingly, 70% anticipate retiring before the present State Pension age of 67[1].
Research highlights the gender disparity in financial engagement
A recent study has identified an alarming discrepancy in financial confidence between genders. It shows that women are 33% more likely to confess to a lack of understanding about their pension operations[1]. This gap in comprehension could be a potential reason why some women seem less inclined to engage with pivotal financial products that promise better future outcomes.
Living a healthy lifestyle over a prolonged period significantly reduces the risk of developing various diseases as we age. This concept is rooted in the idea that our daily habits and behaviours profoundly impact our long-term health outcomes.
Distributing assets or cash without contributing to your estate’s overall value for Inheritance Tax purposes
In the unfortunate event of one’s passing, there’s a possibility that HM Revenue & Customs (HMRC) may levy an Inheritance Tax (IHT) bill on the deceased’s estate. The estate’s total value determines the sum due after deducting any debts and applying all possible thresholds. Two thresholds that come into play are the nil rate band (NRB) and the residence nil rate band (RNRB).
