Investment and Pensions Taxation

Accudo are able to apply their tax expertise in terms of ensuring that pension and investment recommendations are tax-efficient both for individuals, couples and families, and also small business owners.  This expertise also extends to the ongoing management of these investments to ensure that we continue to make use of ongoing tax mitigation strategies in the best possible way as we work together over the years.

Claire is a chartered accountant with the ICAEW and is assisted by Alex who is a part-qualified certified accountant.  We feel that having this accountancy background within our firm gives us an edge over some financial advisers who may not have this in- house expertise.  Just some of the examples of the work we do involve tax planning strategies are as follows:

From where to withdraw Income? (sometimes known as pension decumulation or just decumulation)

Analysing were to take income from first and in what subsequent order during retirement, for example, pensions, ISA’s, bonds, or general investments?  To correctly analyse this we look at income tax, capital gains tax, and inheritance tax considerations.

Pension Contributions or ISA’s during the growth phase? (sometimes known as pension accumulation or just accumulation)

Analysing whether it makes sense to make pension contributions or ISA contributions if it is a one or the other consideration, or whether to make both.  This involves looking at the tax savings now, verses potential tax in the decumulation phase.

Maximising Pension Contributions

Calculating the maximum that can be contributed to a pension from a legislation point of view, including carrying forward calculations, the money purchase annual allowance, the annual allowance calculation for DB schemes (or final salary schemes), and the wholly and exclusivity test for employer contributions.

We can also look at calculating the most tax-efficient level of contribution and how to make this contribution i.e. as a member or employer contribution in the case of small business owners.

Managing Investments held outside of tax wrappers to still achieve tax efficiencies.

Investments can be held outside of any tax wrapper, often known as general investment accounts or GIA’s, if this is the case we seek to ensure that dividend allowances are used appropriately and that gains are massaged out over time, making effective use of annual capital gains tax (CGT) exemptions.

We also consider the use of investment bonds in addition to or as an alternative to GIA’s.

Inheritance Tax Planning

We considering the use of inheritance tax planning wrappers for clients such as discounted gift trusts and gift and loan schemes and bare trusts (particularly where funds are being inherited from grandparents and there is a need for income perhaps for school fees planning).

Additionally, we will recommend using appropriate solicitors if specialise trusts could benefit clients.

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