Base rates have been pegged at 0.5% by the Bank of England since March 2009 and we believe it is unlikely that we will see any increase in rates for some time. Income tax rates are the other problem here as they erode the returns from cash deposits. Leaving all your investments in cash deposits is currently an investment strategy which will lose money in real terms, when inflation and income tax are taken into account.

Getting a better return than cash involves taking on more investment risk. We have successfully provided income seeking clients with tax-efficient portfolios. Everyone's attitude to taking more risk than cash deposits is different, but we can tailor solutions to match individual risk tolerance. A husband and wife who are currently not using their annual capital gains tax exemptioncan take substantial tax-free sums from their investment each year up to the value of the exemption.
There are various methods which can be legitimately used in order to limit your liability to the highest rate of tax. For example, pension contributions can be one of the most effective means to achieve this but recent legislation has curtailed the amount of contributions which are eligible for tax relief. Venture Capital Trusts (VCTs) provide income tax relief but they are higher risk investments and therefore must be appropriate to your risk tolerance.

We have successfully worked with high earners in order to find the most appropriate tax strategy for them and make sure they are making maximum use of legitimate reliefs and allowances as part of an overall tax and investment strategy.
When building an investment portfolio we always work to ensure that your investments are organised in the most tax-efficient way for your circumstances. We aim to minimise income and capital gains taxes during your lifetime and inheritance tax on your death.
If you have a large pension fund which is at the lifetime limit then we have solutions to protect future investment growth on the fund from being liable to lifetime allowance tax charges. Please contact us to discuss this.
What can be done about an inheritance tax liability very much depends on individual circumstances. Unfortunately many people only really start to worry about IHT once it is too late to do much about it. Changes in legislation over the last few years have demonstrated that HMRC will act quickly and sometimes retrospectively to curb avoidance of this tax. By far the best way to deal with IHT issues is to start planning early and make maximum use of the available exemptions and the ability to make potentially exempt transfers. If you are concerned by inheritance tax then please contact us and we can advise you accordingly.