Death and taxes. Two certainties of our existence which we would all love to kick into the long grass.
When it comes to taxes the government has been very adept at closing all kinds of loopholes which stop us from avoiding tax. Inheritance tax in particular is more difficult to avoid with many trusts now being taxed heavily. Curiously though last year George Osborne introduced a revolution in pensions which has a fabulous knock-on effect in helping to reduce inheritance tax bills. We can now all pass on our pension pots to our spouses and children entirely tax-free.
Instead of buying an annuity we can remain invested. As pensions do not form part of our estate they are not liable to inheritance tax. What does this mean? Consider using other savings and investments to support yourself in retirement. Consider not touching your pension unless or until you have to. This may save you 40% tax on your estate which is not to be sniffed at. Seek quality independent financial advice.
16 June 2015
The views expressed in this blog do not in any way constitute advice and are specific to the date noted. As time passes the facts can change and readers should consult their adviser for up to date advice on any matters covered within the blog. Invest Southwest offers an initial review, which is free of charge, however long it takes. From this we will be able to confirm how we can help and give you an opportunity to decide if you would like us to. Thereafter, we will provide you with detailed recommendations and exact costs. Please note that we promise not to levy any kind of fee unless we can demonstrate a benefit to you.
