Recent cases

Using tax allowances wisely in an era of higher taxation

As the deadline for submitting online self-assessment tax returns approaches, Andy Gadd, Head of Research at Lighthouse, reminds us that there are still plenty of ways individuals may be able to reduce their tax liability and that tax savings should always be made in the context of an overall financial planning strategy. View PDF

Some good news at last ... for people with funds to invest

In the last issue of Wealth Management Alert for 2011 we highlight two recent announcements that are good news for people with significant funds to invest: the introduction of Seed Enterprise Investment Schemes (SEIS), which offer 50% upfront tax relief and when combined with deferred CGT a total of 78% tax relief, and the changes to the carry forward rules that have created a window of opportunity for some people to make considerably more pension contributions in the current tax year. We also look at how relevant life policies offer a tax-efficient way of providing life cover for employees. View PDF

IHT: when to consider will trusts and nil rate band planning

Recent consumer research by Legal & General reveals that while 69% of people are aware of their potential IHT liability, the majority have taken no steps to eliminate this liability other than to make a will. In this issue of Wealth Management Alert we look at some of the benefits of using will trusts to reduce IHT. View PDF

How can you help clients with auto-enrolment?

An enquiry from a client of Wenn Townsend, one of the accountancy practices we work with regularly, led to Lighthouse successfully implementing the UK’s first ever NEST pension scheme to be introduced by an adviser, an event which recently featured on the front page of Financial Adviser. In this issue of Wealth Management Alert we look at what you can do to help your clients prepare for auto-enrolment. View PDF

Protecting accrued pension benefits

Next year the lifetime allowance for pension savings will fall from £1.8m to £1.5m. In this issue of Wealth Management Alert we ask whether clients with large pension pots should consider asking for fixed protection and if so how does it work and who should apply. View PDF

Time to stand back?

In the August issue of Wealth Management Alert Andy Gadd, Head of Research at Lighthouse Group, gives his view on the recent falls in share prices and reminds investors of some fundamental principles of investing. View PDF

Dains appoints LighthouseCarrwood to operate Dains Wealth Management

LighthouseCarrwood is delighted to have been appointed by Dains Chartered Accountants to provide independent financial advice to its clients via Dains Wealth Management. More information about the reasons for this appointment, together with information about the types of people who tend to be under-saving for retirement, are in the July issue of Wealth Management Alert. View PDF

Loan trusts: a flexible IHT planning tool

An effective way of reducing IHT is to use a trust, but it can be difficult to know which type of trust is most suitable. Does the client need income? Are they able to make an outright gift? Is a mix of both required? Clients are often reluctant to make lifetime gifts as although the money may be surplus to their current needs, they fear they may have to fund future, unforeseen requirements.
In this issue of Wealth Management Alert we consider the circumstances in which a loan trust could be the answer and the importance of investing trust funds wisely. View PDF

The search for sustainable income

With interest rates still at all time lows, investors in search of regular income need to look beyond cash deposit accounts. In this issue of Wealth Management Alert we look one option for generating income in the current investment climate: fixed income funds.View PDF

The Budget: actions for high earners

High earners have every incentive to keep their income below the top rate of income tax and there are a number of ways in which they may be able to achieve this. In this issue of Wealth Management Alert we look at the key benefits – and constraints – of some vehicles which offer up-front tax relief. View PDF

Your lowest producing clients can be our best!

One of our IFAs explains how he changes accountants' perceptions as to how clients can benefit from financial planning and, as a result, helped boost the income the practice generates from its smaller clients. View PDF

End of tax year check list

The end of the tax year is approaching and therefore in the February 2011 issue of Wealth Management Alert we look at ways your clients may be able to make the most of their various allowances and exemptions for the current tax year, and potentially reduce their income tax bills.View PDF

New pension rules

Time is of the essence With less than three months to go until the end of the tax year, now is a good time to talk to clients about their pension contributions, especially in light of the new rules which come into effect on 6 April 2011. In this issue of Wealth Management Alert we look at some of the opportunities and pitfalls clients may encounter in the run up to and during the transition.View PDF

Tax Efficiency for High Earners

With high earners hit by the new restrictions on pension contributions, in this issue of Wealth Management Alert we look at other investment options open to them for reducing their income tax bill. View PDF

All change for Pensions

The government has clarified how it is proposing to restrict tax relief on pension contributions, together with other changes it is planning to make to the pension regime. These changes will take effect from 6 April 2011 at the earliest, but will have an immediate effect on pension planning and the actions people should consider taking. In this issue of Wealth Management Alert we look at the key points. View PDF

When key person insurance makes financial sense

81% of businesses employ someone whose loss would seriously impact the profitability and even the survival of the business. Yet 67% of these businesses have no insurance to protect the reduction in profits that the loss of this personal could result in. In this issues of Wealth Management Alert we look at two aspects of business protection: key person loss of profits protection and key person loan protection. View PDF

Deed of Variation

Deed of variation still has a role in IHT planning Many people already wealthy in their own right, with assets well above the current nil rate band, are now inheriting additional wealth from parents and other relatives. While these people may be taking active steps to mitigate their IHT liability, the effectiveness of a deed of variation is often overlooked. View PDF

Rental income going into s SIPP or SSASS?

Are any of your clients investing directly into commercial property within their SIPP or SSAS? If so there will be a rental income stream. If this is not being used to pay charges or service borrowings, they could consider opening a TIP, which offers trustees a flexible way of making investments. View PDF

Entrepreneurs' relief: don't assume clients will pay less!

Entrepreneurs realising a qualifying capital gain of up to £5 million are now better off. However, as the amount of realised gain increases, the impact of the increase in the CGT rate is greater than the advantage of a higher lifetime limit for entrepreneurs' relief. In this issue of Wealth Management Alert we look at the issues to consider when advising clients about realising gains.View PDF

Inheritance tax planning an issue for an increasing number of people.

There are still a number of ways people can reduce what is still largely a voluntary tax, despite the tightening up of various legislative loopholes. View PDF

Pre-Budget Action

Action to consider taking ahead of tax changes The new Government will be presenting its emergency Budget on 22 June. With changes to CGT and pension contributions tax relief widely expected, we look at what, if any, action should clients consider taking. View PDF

Still time to do some year end tax-planning

With the end of the tax year just a few days away, here are five ways you may be able to help clients reduce their tax payments. View PDF

Financial services: a natural fit for our firm

Matthew Tyson, Tax Director at Richard Place Dobson, explains how the firm finally got its financial services department up, running and profitable. View PDF

Discretionary trusts, love them or hate them

In this month’s Wealth Management Alert we look at discretionary trusts, one of the most powerful ways of mitigating inheritance tax (IHT) and the one way you can reduce a person’s estate without increasing someone else’s. However, due to occasional charges to IHT and additional reporting requirements, the tax treatment of discretionary trusts is often viewed as quite complex. But is this really the case?View PDF

Impact of the extended anti-forestalling provisions

In the Pre-Budget Report the Chancellor announced an extension to restrictions on higher rate tax relief for pension contributions. In doing this, he added further complexity to legislation and guidance that already extended to over 100 pages. In this month's Wealth Management Alert we look at a number of scenarios demonstrating how this affects high earners.View PDF

In this month's Wealth Management Alert

Martin Briggs, a Director of Duncan Boxwell, a four director accountancy practice, talks about their reasons for launching a financial planning service earlier this year and how they made sure it got off to a flying start.View PDF

High earners, income tax and pensions

The 2009 Finance Act is a minefield for Individuals with a charge to income tax above £150,000. What do they need to watch out for and what action should they consider taking? View PDF

Entrepreneur Relief

Using Entrepreneurs Relief in conjunction with enterprise investment schemes can, with careful planning, help defer CGT and also reduce income and inheritance tax, even for gains realised before 6 April 2008. View PDF

Structured Products

Sales of structured products are expected to hit record highs this year as investors seek to combat low interest rates and stock market volatility. We look at how such products work, some of their disadvantages, and who they could be suitable for. View PDF

The hardest thing to understand?

After the budget tax - and how to avoid paying it - is once more an issue. Many people fail to use their annual ISA allowance, yet ISAs are not subject to CGT or income tax, making them a useful way of saving for retirement outside a pension plan. And on the subject of pensions, clients born between 1955 and 1960 have only months left to decide whether to start taking pension benefit now - or wait until 2015.View PDF

Helping clients through tough times

Now more than ever, people are turning to their accountants for practical advice that will help them weather the downturn that so many businesses and individuals are experiencing. Many of their concerns involve financial planning issues such as funding capital purchases, pension planning and lifestyle protection. In most cases providing such advice involves working with a qualified, professional IFA, preferably one who, like you, operates a fee-based business model.View PDF

Business protection: a small price to pay

We would be pleased to offer your clients a review of their business protection arrangements free of charge. Click here to read about the issues key person insurance can help resolve and the various ways it can be structured.View PDF

Clients with funds in final salary schemes?

Concern is growing among final salary scheme members about the security of their pension. However the decision to transfer requires careful consideration. We are currently offering to produce a report on clients' current position, free of charge.View PDF

Bad news for people with large pension pots

The freeze on personal allowances announced in the Pre-Budget report may mean that more people will reach the lifetime allowance, and some sooner than anticipated. Clearly any pension planning made on the assumption of further increases should be reviewed.View PDF

SSASs offer business advantages as well

innovative entrepreneurs can make their SSAS work for their business while building up their pension fund. View PDF

Buy-to-let investors need to think ahead

Any clients you have with a portfolio of buy-to-let properties should be taking a long hard look at their options and will need some guidance to do that. And how much better would it be to raise this in advance with clients, to give then time to plan instead of receiving that panicked telephone call when the problem arises? View PDF

Protected Rights

Changes to pension regulations which came into effect on 1 October 2008 enable investors to move their protected rights funds to a SIPP. View PDF

Retirement planning

The client is aware of potential IHT and would like to address the issue. However, she would like to draw an income in her lifetime and pass the capital to her children in the most tax efficient manner. more...
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Estate planning

Mr and Mrs B aged 65 and 63 respectively have a home valued at £550,000. They have recently sold another property for £180,000 which has added to other liquid assets of £350,000 more...
or
Saving £60,000 of inheritance tax liability after seven years, increasing income by £3,000 a year and giving a much simpler, lower risk investment. View PDF

Investment optimisation

The client is aware of potential IHT and would like to address the issue. However, she would like to draw an income in her lifetime and pass the capital to her children in the most tax efficient manner. more...