Making the most of your money

While tax planning can be complex to navigate, it’s crucial that it forms an integral part of a financial plan.
It will enable you to make the most of your money and minimise the negative impact which tax can have on your personal wealth.
If you’re a business owner whose combined income is generated from several sources, then tax gets a little more complex.
But we’re well versed in pinpointing the best possible options for our clients here at Purity Financial, so you can rest assured that we will implement the most tax efficient methods to invest and expand your wealth.

They are many acceptable ways that the Government enables you to reduce your tax bill, yet UK residents still pay billions of pounds annually in tax that could have been avoided.

That’s where we can help. Products we could set up to better maximise your capital stake include establishing trusts and setting up ISAs.

Common areas of tax planning

Savings

ISA saving accounts, which have existed for many years, not only allow you to save but also to avoid paying tax on the interest your stake generates.
However, many people are still unsure of the benefits of investing in ISAs, including positive tax implications that can be reaped by taking them out.

Retirement planning

Personal pensions also regularly form an integral element of any financial planning as they enable you to benefit from tax relief if you make an acceptable level of payments into your selected pension pot.

Inheritance tax

Inheritance tax (IHT) is another important consideration to factor into any effective financial plan when it comes to your estate.
This is because IHT could impact considerably on the amount of tax which could be owed on your combined wealth following your death.
For example, do you know if the residence nil rate band, or RNRB, will apply to your estate? If it is does, it could have a significant impact.

Capital gains tax

Capital gains tax (CGT) is a tax on the increased value, or the profit, on your assets when you sell them off, or dispose of them.
You are entitled to make a set amount of CGT annually before you’ll be required to pay tax on it, but as it represents another element that could impact on your estate, it’s important to factor this into your financial plan too.

The Financial Conduct Authority does not regulate Trusts, Estate or Tax planning. Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor.