Welcome to our latest edition. At the time of writing this issue, Sajid Javid had resigned as Chancellor of the Exchequer with less than a month to go until Budget Day. His replacement, Rishi Sunak, will deliver the Budget on 11 March 2020. In our next issue, we’ll look at the key announcements and how they could affect your finances.
Some of the questions our clients almost always ask us are: ‘Will I be able to retire when I want to? Will I run out of money? How can I guarantee the kind of retirement I want?’ Worryingly, it’s been well documented that many Britons aren’t saving enough in their pension for their retirement. On page 10, figures published by HM Revenue & Customs (HMRC) in September 2019 show that the annual average contributions that every individual makes decreased in 2017/18 compared to 2016/17. We look at what you need to consider when saving for retirement.
The end of the 2019/20 tax year is fast approaching, and there are a number of valuable allowances and reliefs that will be lost if they are not used before the deadline. These opportunities include, but are not limited to, four important areas of tax planning that should be considered. On page 04, we’ve summarised these allowances and suggest that if appropriate to your particular situation, these areas should be reviewed before 5 April 2020.
Are you worried about leaving an inheritance to your loved ones and then having them pay tax on your legacy? No one likes to think about a time when they won’t be here, but unfortunately the reality is that some people aren’t prepared financially. Estates that pass on to a spouse, registered civil partner or charities are exempt from Inheritance Tax (IHT), even if the value of such estates is higher than the threshold limits. Estates that pass on to anyone else, including siblings, children and grandchildren, attract IHT. Turn to page 09.
A full list of the articles featured in this issue appears on page 03.
An understanding of your financial needs and aspirations
We hope you enjoy this issue. Whether you’re saving for the future, enjoying your retirement or funding care in later life, if you have any further requirements, please contact us – we look forward to hearing from you.
Oakwood Financial Services