As we approach the end of the tax year, and with the 2011 Budget scheduled for next month, there are several conversations that our Financial Planners are keen to have:
1 – Earning more than £150,000 a year
With the highest rate of income tax at 50%, the loss of personal allowance on earnings over £100,000 and the complex anti-forestalling rules restricting pension contributions, we are keen to speak to individuals earning over £150,000 a year.
Some changes to the pension contribution rules being introduced on 6th April 2011 have opened up planning opportunities in the 2010/11 tax year for this group of individuals.
We have put together a short presentation that any of our Financial Planners would be happy to run through with you to explain the changes and planning opportunities.
We would also be happy to meet with Accountants in the run up to the end of the tax year to discuss these important pension changes and help you to identify those clients who might benefit.
2 – Thinking about using Unsecured Pension this year
6th April 2011 also sees some changes taking place to the rules associated with Unsecured Pensions (Income Drawdown). In simple terms, the maximum income limit is being reduced from 120% of the Government Actuary’s Department (GAD) maximum to 100%. There are also changes being made to the death benefit tax charges.
For individuals thinking about taking their pension benefits in 2011 and using Unsecured Pension (rather than buying an annuity), there could be an advantage associated with setting up the arrangement before 6th April 2011.
For most individuals, this would mean their maximum income limit was set at 120% of the GAD maximum for five years, rather than 100% of the GAD maximum for three years if the Unsecured Pension was established after 6th April 2011.
3 – Joint ISA portfolios over £100,000
The Individual Savings Account (ISA) contribution limit is being increased from £10,200 to £10,680 on 6th April 2011. To enable investors to take advantage of this new annual ISA allowance, it is important to review existing portfolios ahead of the end of the tax year.
We are increasingly finding that ISA investors can benefit from a substantial cost reduction by moving their portfolios to a modern investment platform with access to an unrestricted range of investments.
With a married couple able to invest a combined £21,360 in ISA portfolios for the 2011/12 tax year, there is an opportunity to shelter investment returns from unnecessary tax charges and ensure that your existing portfolios are invested in a cost efficient manner, with suitable levels of risk being taken.
4 – Selling a home to go into care
We have particular expertise and experience when it comes to funding the cost of long-term care. Our approach differs from many other care fees advisers because we consider the entire range of care fees planning options, including investments for income and the use of immediate care fees annuities.
All three of our care fees planning specialists hold the Chartered Financial Planner and Certified Financial Planner (CFP) status. This makes them some of the most qualified Financial Planners in the UK and able to apply a more holistic approach to the subject of care fees planning.
We will hold your hand through the entire process and work with any legal representatives to ensure the financial aspects of care fees planning run as smoothly as possible.
5 – Getting divorced in 2011
We work with people getting divorced and their solicitors to provide specialist and independent advice on all aspects of pension, retirement and financial planning.
Our specialist divorce financial planners will explain all of your options and help you to make the right decisions.
In addition to holding advanced pension qualifications, our specialist divorce financial planners hold the Chartered Financial Planner status.
Get in touch
Do call us on 01483 274566 or email hello@icl-ifa.co.uk if you would like to have an initial conversation about any of these financial planning topics.
The first meeting with an Informed Choice Financial Planner is at our expense and without any obligation.
We look forward to hearing from you.
Photo credit: Flickr/Robert Couse-Baker
