News
Pensions Simplification?
The Government's much heralded Pensions Simplification legislation finally arrived in the Spring of 2006, in many ways it has failed to live up to its title.
For those individuals starting to plan for their retirement the new rules simplify planning considerably, with pension contribution limits having been relaxed along with a new simplified structure for retirement benefits.
Those individuals with existing pension funds, however, have had to seek advice on protecting larger funds against the HMRC Lifetime Allowance charge with only a limited timescale in which to do so. Active Wealth Management, as part of our comprehensive retirement planning proposition, have helped many clients avoid a hefty tax bill on pension funds which were previously tax exempt.
Inheritance Tax - Avoiding the Charge
Inheritance tax (IHT) planning vehicles come in many shapes and sizes and Active Wealth Management prides itself on the comprehensive IHT planning service we can offer our clients. From the simple use of life assurance, as well as the use of more complex Trust based arrangements, we will always endeavour to find the most appropriate IHT solution to match a client's needs.
One popular solution for IHT planning purposes is the use of Business Property Relief which allows individuals to invest their capital so that it qualifies as a business asset. The investment is specifically designed for investors who wish to keep control of their assets and yet benefit from inheritance tax mitigation. After two years of trading, the investment should qualify for Business Property Relief for inheritance tax purposes, currently at a rate of 100%.
Not all Tax and Inheritance Tax Planning is regulated by the Financial Services Authority
New rules from the Treasury now allow individuals with Cash ISAs to transfer any cash savings they have built up from previous years allowances into Stocks and Shares ISAs without affecting their annual investment limit. This presents an excellent opportunity for individuals to seek the greater growth potential and investment diversification afforded by Stocks and Shares ISAs.
ISA changes will probably not take effect until April 2007