Structure your wealth
A window of opportunity to structure your wealth tax efficiently
As the Chancellor has cancelled the Budget, there is a window of opportunity for investors to structure their wealth tax efficiently before the highly predicted tax rises.
Below, Anthony Ward, head of our Wealth Planning team, shares his views on potential future tax rises.
The extra Government borrowing needed to pay for the Coronavirus pandemic has resulted in the total UK debt passing two trillion pounds for the first time in history, exceeding the size of the UK economy.
The Chancellor, Rishi Sunak, has cancelled the Autumn Budget, however at the Conservative Party Conference he did give a sign that tax rises are around the corner by saying there was no “easy cost-free answer” and that there were “hard choices everywhere”, but that the government had a duty to leave public finances strong.
He went onto say, “We have a sacred responsibility to future generations to leave the public finances strong, and through careful management of our economy, this Conservative government will always balance the books.”
By deferring the difficult choices around tax rises for the time being, and by cancelling the Autumn Budget, he will now surely be reviewing what taxes he could rise to raise funds and help balance public finances.
For investors, this presents what could be described as a window of opportunity to review their wealth and ensure they are structuring this as tax-efficiently as possible. The use of Individual Savings Accounts (ISAs), pensions and other tax advantageous investments, such as Enterprise Investment Schemes (EISs) and Venture Capital Trusts (VCTs), should be considered along with tax planning using income tax, dividend tax and capital gains tax allowances.
Diversifying investments across various tax vehicles provides tax diversification which can also help if the anticipated tax rises do materialise.
Support is available
Our Wealth Planners can help you plan for the future and potentially reduce the impact tax rises could have on your personal and financial goals.
Whether you have taken advice in the past or you are doing so for the first time, our Wealth Planners are available to help you understand your options.
Contact your Wealth Manager if you would like to arrange a meeting with a Wealth Planner to discuss your options.
We’re not providing you with financial, legal or tax advice, so nothing contained in this article should be construed as constituting legal, financial or tax advice. Tax rules and legislation can change and the benefits and drawbacks of a particular tax treatment will vary with individual circumstances. Changes in tax rules and legislation could be retrospective. We recommend that you take professional advice where required. You have sole responsibility for the management of your tax, financial and legal affairs, including making any applicable filings and payments, and complying with any applicable laws and regulations.
Things to consider
The value of investments can fall as well as rise. You may get back less than you originally invested.
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