Smart Money Issues...

Welcome to our latest issue.

The amount of Inheritance Tax (IHT) paid by families has dramatically increased over the past decade, increasing from £3.1 billion in the 2012/13 tax year[1] to £7.5 billion in the 2023/24 tax year[2]. This rise is attributed to growing asset values and stagnant IHT thresholds, coupled with many families delaying their planning. On page 08, we look at how to maximise IHT allowances, strategic planning to reduce IHT, tax-efficient gifting and transfers, utilising pensions for IHT efficiency and additional strategies for reducing IHT.

Dividends represent the portion of a company’s profits distributed to its shareholders. Although often underestimated, reinvesting dividends is a formidable strategy, harnessing the power of compounding to deliver substantial growth over time. On page 06, we consider how this effect means your investment can grow even if a share or the broader stock market shows minimal appreciation or decline.

Many people prefer to avoid the subject of long-term care. Most find it hard to contemplate going into a care home when they are older, but many will do so eventually. However, planning for these potential expenses is important before they become urgent. The NHS, while a cornerstone of healthcare in the UK, only covers care costs in specific circumstances, primarily when related to medical health needs. Turn to page 13.

In today’s unpredictable world, safeguarding financial stability is more crucial than ever. Many of us would struggle to keep up with our essential outgoings, such as mortgage and rent if we lost an income due to illness or an accident. Whether you’re employed or self-employed, income protection is a long-term insurance policy designed to ensure you receive a regular income until you either retire or are fit to return to work. Turn to page 12 to find out more.

A complete list of the articles featured in this issue appears on pages 02 and 03.

This issue was published before the Chancellor, Rachel Reeves, delivered the Autumn Budget Statement 2024 on 30 October. In our upcoming issue, we’ll provide comprehensive coverage of all the key announcements and analyse their potential impact on your finances.

Ready to take charge of your financial destiny?

Whether you’re dreaming of a comfortable retirement, eager to invest in your future, or aiming to protect your wealth, we’re here to support every step of your financial journey. Contact us today to discuss your goals for a financially secure and vibrant future. Remember, your path to financial success starts with one bold move.

Source data:

[1] https://www.gov.uk/government/statistics/inheritance-tax-statistics-table-121-analysis-of-receipts

[2] https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk/hmrc-tax-receipts-and-national-insurance-contributions-for-the-uk-new-annual-bulletin#inheritance-tax