Price Ferguson Wealth Management

31/03/2025

TAX SMART INVESTING
With the capital gains tax allowance now at just £3000 per year, savvy investors are turning to insurance company bonds instead!
Why? These smart investment vehicles are taxed as income rather than capital gains - a huge benefit especially for nil or basic rate taxpayers.
Plus, these bonds offer amazing flexibility and can help reduce your Inheritance Tax burden!
Interested in learning more about how these could work for you? Simply drop a message and let's chat through your options!

13/02/2025

🏠 First-time buyers - here's a clever way to get on the property ladder!
Struggling to buy in the south-east? You're not alone! Even with help from the Bank of Mum and Dad for the deposit, getting a big enough mortgage can feel impossible - especially if you're buying solo.
Here's a tip: Did you know you can own your home 100% while having a parent on the mortgage? This means their income counts towards what you can borrow, making that dream home much more achievable!

Send a message to learn more

04/02/2025

🤔 Worth knowing about the State Pension...

While it's great value, it's not as straightforward as you might think. Did you know that if your partner passes away, you might get very little or nothing added to your own pension?

Really makes you think about putting some money aside for yourself. Don't just count on the State Pension - future you will thank you!

23/01/2025

🏦 Tax Alert for High-Value Estates!
Pension changes mean more tax risk. Protect your £1M+ estate now.
Quick strategies:
• Business relief investments
• Reversionary interest trusts
Need help? Contact us!

16/01/2025

🏠 Pop Quiz: Your savings account vs. Your mortgage - which one deserves your extra cash right now?

With interest rates at their highest in years, paying down your mortgage could be your smartest money move!

Think about it: If your mortgage charges 5% interest, every £1,000 you pay off saves you £50 a year in interest - guaranteed!

(Just remember to keep some savings for emergencies! 💰)

What would you do - invest or pay down the mortgage? Drop your thoughts below! 👇

02/01/2025

Here’s to a 2025 filled with prosperity, well-being and joy.

17/12/2024

Financial Planning: 11 Essential Tips for 2025
1. Boost Your Pension: Maximise pension contributions, especially using work bonuses. Consider tax-efficient strategies.
2. Save for Younger Generations: Open Junior ISAs or child pensions. Small, regular contributions can grow significantly.
3. Seek Financial Advice: Don't delay professional guidance. Your financial needs evolve constantly.
4. Optimise Tax Allowances: Use ISAs and pensions strategically. Explore ways to maximise tax efficiency.
5. Update Pension Beneficiaries: Review and update pension nomination forms, considering inheritance tax changes.
6. Consolidate Pension Accounts: Gather and potentially merge pension pots for easier management.
7. Build an Emergency Fund: Maintain 3-6 months of living expenses as a financial safety net.
8. Conduct Regular Financial Check-ups: Review your financial portfolio quarterly, adjusting to life changes and market conditions.
9. Diversify Investments: Spread investments across different asset classes to manage risk and potential returns.
10. Review Insurance Coverage: Ensure your life, health, and income protection insurance adequately covers your current life circumstances.
11. Plan for Future Care Needs: Consider long-term care planning and potential future healthcare expenses.

10/12/2024

One of the more unpleasant outcomes of the budget was that pension funds have now been included in calculating the Inheritance Tax paid by us all.

Ironically, it leaves cohabiting couples that have perhaps lived together for many years even more vulnerable to extra taxes on their estates.

This may sound bizarre, but the Pension changes are another “financial” reason for people to “tie the knot”.

If this is your situation, then feel free to ask for further clarification.

03/12/2024

Investing in UK Company Shares 🤦???
The Problem: UK pension funds are increasingly investing outside the UK. A decade ago, over 50% of pension money was invested domestically. Now, it's less than 25%.

Why Pension Funds Invest Abroad:

• UK stock market returns have been “historically” lower
• 2010s: UK stocks returned 5.5% annually
• Global stocks: 10.5%
• US stocks: 14%
• This trend continues in the 2020s

The Government's Challenge:

• Forcing UK investment could reduce pension returns
• Government models show little benefit to mandating UK investments
• Risks damaging individuals' retirement savings

If you have your own pension funds:

You would be well advised to be part of the overseas focused trend. In the end, the UK isn’t the most dynamic place to invest.

26/11/2024

Five ways to cut inheritance tax on pensions:

1. Gift and spend strategically
• Use the 25% tax-free lump sum for gifts, starting the seven-year inheritance tax clock
• Make regular gifts using the 'normal expenditure from income' rule
• Fund pensions for family members – both children and grand-children.
• Be careful not to compromise your own retirement security
2. If unmarried but with a “long-term” partner ……. “Consider” marriage
• Wealth passed to spouses/civil partners is inheritance tax-free
• Update pension death benefit nominations to pay everything to your spouse
3. Plan around age 75
• After 75, beneficiaries pay income tax on inherited pensions
• Risk of double taxation (inheritance tax plus income tax) could mean only 48p in £1 remains for a basic rate taxpayer. Less for a higher rate tax payer.
• Consider accelerating pension drawdown or buying an annuity at this age
• Especially important if estate exceeds £2M (when residence nil rate band starts reducing)
4. Redirect pension savings
• Consider stopping pension contributions if you have enough saved
• Redirect money to inheritance tax-efficient assets
• Pay down mortgage or give to charity
• Fund Junior ISAs or family members' pensions instead
5. Insure against the liability
• Take out whole-of-life cover written in trust
• Can cover all or part of expected inheritance tax bill
• For couples, use 'joint life, second death' policies
• Provides liquid funds for executors to pay tax before probate
• Can fund premiums through pension drawdown

Changes take effect from spring 2027, so there's time to plan - but those with large pension pots should start considering options now.

21/11/2024

Pension Pots Set to Become Part of Inheritance Tax Calculations in 2027

Quick Take: Chancellor Rachel Reeves announces significant changes to inheritance tax rules affecting defined contribution pension pots.

Key Details
• When: Effective from April 2027
• Impact: 10,500 estates with inheritable pension wealth will be newly liable

5 Strategies to Mitigate New IHT Rules
1. Lifetime Gifting: Start giving away or spending pension funds proactively
2. Age 75 Planning: Carefully manage pension funds to minimize tax exposure
3. Fund Diversion: Redirect pension contributions to alternative investments
4. Insurance: Take out an insurance policy to cover your inheritance tax liability.
5. Alternative Investments: Children pensions, venture capital trusts, enterprise investment schemes etc.

For any help you may need contact us: 01483 456 477

07/11/2024

Having been working in the investment arena for the last 40 years, no budget has had as many profound changes within it as last Wednesday's budget delivered by Rachel Reeves .

The tax burden going forward for the United Kingdom is the highest it has ever been, and in terms of personal tax, makes significant changes to capital gains tax and inheritance tax in particular. Nothing previously, I suspect, has brought as many people into the Inheritance Tax net.

If the budget does affect you and you want some input and thoughts from Price Ferguson, simply come back to me with your contact details and we can talk.

All the best,

Michael

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