Welcome to our November/December 2024 edition of our financial planning magazine.
Inheritance Tax
Welcome to our latest issue. The amount of Inheritance Tax (IHT) paid by families has dramatically increased over the past decade, increasing from £3.1 billion in the 2012/13 tax year[1] to £7.5 billion in the 2023/24 tax year[2]. This rise is attributed to growing asset values and stagnant IHT thresholds, coupled with many families delaying their planning. On page 06, we look at how to maximise IHT allowances, strategic planning to reduce IHT, tax-efficient gifting and transfers, utilising pensions for IHT efficiency and additional strategies for reducing IHT.
Dividends
Dividends represent the portion of a company’s profits distributed to its shareholders. Although often underestimated, reinvesting dividends is a formidable strategy, harnessing the power of compounding to deliver substantial growth over time. On page 04, we consider how this effect means your investment can grow even if a share or the broader stock market shows minimal appreciation or decline.
Long-Term Care
Many people prefer to avoid the subject of long-term care. Most find it hard to contemplate going into a care home when they are older, but many will do so eventually. However, planning for these potential expenses is important before they become urgent. The NHS, while a cornerstone of healthcare in the UK, only covers care costs in specific circumstances, primarily when related to medical health needs. Turn to page 11.
Income Protection
In today’s unpredictable world, safeguarding financial stability is more crucial than ever. Many of us would struggle to keep up with our essential outgoings, such as mortgage and rent, if we lost an income due to illness or an accident. Whether you’re employed or self-employed, income protection is a long-term insurance policy designed to ensure you receive a regular income until you either retire or are fit to return to work. Turn to page 10 to find out more.
A complete list of the articles featured in this issue appears on page 2.
This issue was published before the Chancellor, Rachel Reeves, delivered the Autumn Budget Statement 2024 on 30 October. In our Autumn Budget Statement Guide we have provided comprehensive coverage of all the key announcements and analyse their potential impact on your finances.
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Source data:
[1] https://www.gov.uk/government/statistics/inheritance-tax-statistics-table-121-analysis-of-receipts
[2] https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk/hmrc-tax-receipts-and-national-insurance-contributions-for-the-uk-new-annual-bulletin#inheritance-tax
All Matters Financial Podcast
Dive deeper into the topics mentioned on this insight and more with our All Matters Finance Podcast. Click the link below:
Personal circumstances differ and not all of this information is applicable to every client and/or their business, this information is general in nature and should not be relied upon without seeking specific professional financial advice.
The Financial Conduct Authority (FCA) does not regulate tax advice, estate planning, trusts or will writing.
The content in this article is for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice.
Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles.
Thresholds, percentage rates and tax legislation may change in subsequent finance acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor. The value of your investments can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future results.
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