At the risk of spoiling it for you, (link at the bottom if you want to read the full article), it is
somewhat simplistic in its approach. It addresses the basic questions such as what the taxes
are (Stamp Duty, Dividend Tax and Capital Gains Tax) and even goes so far as explaining
‘What is a share?’…

But let’s not be too hard on The Times as it is often having a grasp of the basic principles of
taxation which can have the greatest impact on investment returns.
For instance, you may already realise that an ISA can be a very tax efficient way of holding
collective investments.

However, what if you’ve already utilised your ISA allowance, what then?
Perhaps you have your eye on a particular fund but is it better to invest within in a bond or
within an OEIC?

You might be surprised to know that the tax treatment of the two is significantly different
and the wrong choice could mean you are thousands of pounds worse off.

Of course, the devil is in the detail and you need to make sure you speak to someone you trust.
1 https://www.thetimes.co.uk/money-mentor/article/tax-shares/

(You are now departing from the regulatory site of Coleshill Wealth Management. Coleshill Wealth Management is not responsible for the accuracy of the information contained within the linked site.)

The Financial Conduct Authority do not regulate trusts and inheritance tax planning.

The post Could this be the biggest mistake rookie investors make? appeared first on Coleshill Wealth Management.

There are a number of reasons why both experienced and new investors keep coming back
to buy to let.  Familiarity and emotion are the two probably biggest drivers. People like to invest in what
they feel they understand. They also like to own investments which make them feel good.
Buy to let investing typically hits both of these sweet spots.

And of course, as any investor will tell you, the population is increasing and yet we have a
finite amount of housing. Again, this lends itself to the idea of ever-increasing rents due to
increasing demand.

Nevertheless, there are still some problems…the first being the taxation of rental income.
For some years now, the government have been trying to take amateur investors out of the
market. They have changed the way that rental income is taxed and they have also
introduced a raft of other measures.  For example, it is more expensive to buy and sell with revisions to stamp duty land tax and capital gains tax.

But for me (with my financial adviser hat on – because yes I am also a buy to let investor)
there is something equally serious when we look at buy to let in the wider context of
financial planning and in particular retirement planning.
As well as being taxed more on the income, if you are diverting any spare cash to invest in
property, you may be losing out in a big way on your pension and this may mean that your
retirement options are in fact more limited.

There are a lot of things to consider but I recommend all new or existing landlords to look at
property investing as part of a wider financial plan.  Speak to someone you trust to ensure you achieve the means to have the retirement you
want and deserve.

1 https://www.propertyinvestortoday.co.uk/breaking-news/2021/5/landlord-confidence-grows-as-
many-plan-to-buy-new-investments

The post Why the UK’s obsession with buy to let could be endangering retirement. appeared first on Coleshill Wealth Management.

So why do trusts keep coming up in the conversation…

Well, it’s rarely me bringing it up. Actually, it’s normally the clients who raise it.
I think that probably it’s because people resent the idea of ‘The Taxman’ taking anything
which they have worked so hard for when they finally leave it to their family or friends after
their death.

Now I’m not saying that there isn’t a place for the use of trusts in Inheritance Tax Planning,
it’s just that they’re not a ‘Silver Bullet’.

In some cases, a Trust arrangement could be exactly what is needed but in other cases there
may be other ways in which you can avoid a future IHT liability.

Whatever your concern about Inheritance Tax, make sure to speak to someone you trust to
sooner rather than later as it is far easier (and cheaper) to plan properly than to react later
in the day.

https://www.moneyadviceservice.org.uk/en/articles/using-a-trust-to-cut-your-inheritance-tax
https://www.gov.uk/inheritance-tax
https://www.gov.uk/inheritance-tax/passing-on-home

(You are now departing from the regulatory site of Coleshill Wealth Management. Coleshill Wealth Management is not responsible for the accuracy of the information contained within the linked site.)

The Financial Conduct Authority do not regulate trusts and inheritance tax planning.

The post Using trusts to reduce your Inheritance Tax appeared first on Coleshill Wealth Management.

A recent article in The Independent reports that ‘…new figures show that almost two-thirds
of small businesses expect performance to improve this quarter.*’ However, in the same breath ‘One in seven small firms expecting redundancies as economy reopens after lockdown.’  Is this a contradiction? No, not really. The last twelve months have seen many employers shed staff.  Those employees who are left are likely key employees in one way or another. Experienced people, skilled people – people who are needed in the recovery phase.

Now is not the time to be taking your key staff for granted. And whilst you may not be
ready to be awarding pay rises, you would do well to take this time to review what benefits
you offer your employees.

Of course, different pay grades perceive benefits differently. Executives, board members
and senior managers may appreciate private health cover. More junior staff or those with
young families may find more value in some death in service or a slightly more generous
pension contribution.

One thing’s for sure, there’s no one size fits all.

You may wish to engage your HR team and certainly when it comes to implementing
benefits you may want to talk to your financial adviser as many such benefits are linked to
insurers or pension providers.

Speak to someone you trust to ensure you continue to attract and retain the best talent in
your business to keep you ahead of the competition.

*https://www.independent.co.uk/news/uk/politics/lockdown-redundancies-small-businessconfidence-b1829811.html

(This link is not managed by us, therefore we cannot guarantee its safety)

The post As a business owner how can I provide valuable employee benefits without breaking the bank? appeared first on Coleshill Wealth Management.

It sounds daft doesn’t it, earning too much? Probably not something most people think about
let alone imagine being a problem. But for those individuals at the peak of their careers it can be.

An article titled ‘Median full time gross weekly pay of the highest paid occupations in the United
Kingdom (UK) as of April 2020*’ showed the following as the highest earners in the UK.

1. Chief execs
2. Marketing and sales directors
3. Legal professionals
4. Various types of directors
5. Medical practitioners
6. Senior professionals eg in education
7. Senior police officers
8. Tram and train drivers

I’m guessing that most of the professions in the list will not come as a shock to you. Others however
may just surprise you.

So, what are the problems if any of earning too much in your forties and fifties?
Well for one thing, you’re still some way of retirement. If you are earning a lot in your forties and
fifties, you are also likely spending a lot. But are you putting away enough for retirement? An
extravagant lifestyle during your working life can make it harder to adapt to a more modest lifestyle
in retirement.

If you are putting money away into your pension, good for you but are you aware of where you are
in comparison with your lifetime allowance?

There are many more things to consider but hopefully this gets the point across that there are
considerations to be made when it comes to higher earners.

Speak to someone you trust about how to make sure your retirement works for you.

*https://www.statista.com/statistics/282397/highest-paid-occupations-in-the-united-kingdom-uk/

(This link is not managed by us, therefore we cannot guarantee its safety)

The post Earning too much in your forties and fifties? appeared first on Coleshill Wealth Management.

Time to tidy up all those leftover pensions? The average Brit has six jobs in their lifetime, according to new research by Investec Click & Invest.* With this in mind, by age 40 the average employee is probably halfway through their career and has maybe three or four pensions in their wake.  

So, what has happened to these pensions from former jobs and what can be done with them?  

Left to their own devices, you would hope that they are growing in value but if you’re not monitoring them, you’ll never know. 

 What’s more, if you are no longer actively contributing to the pensions, they’re only going to be worth whatever they were when you left that employment plus or minus any growth. 

As you’re probably starting to appreciate, what I am describing is actually quite a common position to be in, especially for employees in their forties. This type of scenario makes up a good proportion of the enquiries we get from potential clients. 

 So how do we go about tackling this? 

 Our first step is to help the client gather up to date information on their pensions. You see, whilst pensions as a concept are simple enough, the devil is most certainly in the detail. 

 You’d be amazed by the variation in investment styles and fund choices, not to mention the difference in ongoing fees between the various providers and products. 

 Getting up to date paperwork is of course just the starting point. After that, it’s about seeing where you are now and comparing it with where you want to be.  

Please make sure you speak to someone you trust. We are happy to have initial conversations. 

Millennials likely to have 12 jobs in their working lives, research finds – (recruitment-international.co.uk) 

(This link is not managed by us, therefore we cannot guarantee its safety)

The post When did you last check your pension? appeared first on Coleshill Wealth Management.

A recent article on Morning Star website states that ‘More than 1 million workers are likely
to breach the pension Lifetime Allowance (LTA) and be liable for a hefty tax bill…’1
Scary to think then that many people who are statistically likely to be affected by the
pension lifetime allowance don’t fully understand it.

Let me give you an example.

Doctors (and other types of medics) frequently find themselves affected towards the second
half of their career. Assuming that you graduated in in your early twenties and continue to
work until your late sixties, you’ve got somewhere in the region of fifty years of earning.
Couple that with earnings in the latter part of your career, at consultant level, tending to be
in excess of £82,096 per annum2
and you have a recipe for disaster if left unattended.

SO, WHAT ARE THE IMPLICATIONS OF EXCEEDING YOUR LTA?

Simply put, charges rather than tax breaks!
The good news is that pensions are not the only means of saving towards your retirement.
Speak to someone you trust earlier rather than later. Planning ahead is always better than
trying to deal with the consequences.
1 https://www.morningstar.co.uk/uk/news/209287/the-pension-lifetime-allowance-explained.aspx
2 https://www.healthcareers.nhs.uk/explore-roles/doctors/pay-doctors

(You are now departing from the regulatory site of Coleshill Wealth Management. Coleshill Wealth Management is not responsible for the accuracy of the information contained within the linked site.)

The Financial Conduct Authority do not regulate trusts and tax planning.

The post What can I do if I expect to exceed my pension ‘lifetime allowance’? appeared first on Coleshill Wealth Management.