Pensions and savings
The products via which you make your investments are not the be-all and end-all. However, the tax treatment of New Individual Savings Accounts (NISAs - until July 2014 known as ISAs) mean that they ought to play a part in most investors' portfolios.
For those who have yet to retire, the tax reliefs available on saving in an approved pension scheme also make this a core element of most financial plans.
Money invested in a NISA/ISA grows tax-free, making this an attractive wrapper in which, over time, it is possible to invest significant sums. To find out more about how Clarion Wealth Planning can help you make the most of your NISA/ISA allowance, please click here.
Pensions, meanwhile, come in a variety of forms – from the increasingly lesser-spotted final salary variety, through to occupational defined contribution schemes, personal pensions, group personal pensions, self-invested personal pensions, stakeholder pensions and NEST schemes.
Other than the defined benefit/final salary schemes, all of these pension vehicles are known as “defined contribution” schemes and involve the member (and in some cases their employer) making contributions out of pre-tax income into a pot that grows tax-free and is used to pay a tax-free cash sum and income on retirement.
And for those whose tax-relieved pension funds have reached – or are likely to reach – the Treasury’s lifetime limit on fund size, other, “unapproved” options are available.
Clarion employs highly qualified pensions experts who can bring decades of experience, covering all types of schemes, to bear on your retirement planning. To find out more about pensions please click here.
For those savers who have used up their NISA/ISA allowance and either reached regulatory limits on their pensions savings or simply wish to keep their savings in a more flexible vehicle, a range of other vehicles are available.
Investments made in unit trusts, for instance, are subject to capital gains tax (CGT) – but with an annual CGT allowance of £11,000 in 2014/15 significant growth can still be experienced tax-free.
Offshore bonds, meanwhile, grow in a tax-free environment, only attracting tax when withdrawals are made. This “roll-up” effect can make a significant difference to compound growth over the years.
The above are only examples of the many options available to structure your pensions, savings and investments in the most advantageous way. To find out how Clarion Wealth Planning can help please call 01565 653804 or send us an email.