Page 33 - Phonebox Magazine November 2007

Finance Matters
brought to you by Advison Independent Financial Advisers
Are your finances still tax efficient following the recent changes to Inheritance Tax?
The recent changes to Inheritance Tax announced by the Chancellor will have been welcomed by many but they have also led to the need for a review of a couples tax planning.
The amendment now means that when the first spouse dies, if their IHT Nil Rate Band (NRB) of £300,000 is not used, it can be transferred to the surviving spouse. In effect this means that a couple whose total assets are worth less than £600,000 can now leave them all to the surviving spouse and on the second death both individual NRB’s can be used.
However, for many this change will not only mean the planning they undertook previously is no longer valid, but it may also put them in a worse position. There have been many different forms of planning undertaken over the years to try and use both NRB’s but certainly one of the most popular has been to create a Trust Fund and leave assets to this rather than to the surviving spouse.
This type of planning does need to be reviewed as in most scenarios it is no longer required. Gifting money to someone other than the spouse can still be tax efficient at death but now it should be achieved by the surviving spouse receiving the money
and then making a gift. If they then live a further seven years, this gift will fall out of the final estate and the surviving spouse will also have both NRB’s available.
In line with Wills that create a Trust on death, couples will normally have ensured that the level of assets held by each spouse is equal. However, whilst this is tax efficient from an IHT point of view it is not always the case from an Income Tax or Capital Gains Tax perspective. As such, those couples who have used planning through a Will should not only revisit their Wills but also ensure that their assets at present are as tax efficient as possible.
Advison has a wealth of experience in helping clients with different investment strategies and tax planning, ensuring that a well constructed portfolio provides the diversity required. We are also able to review your investments so that they remain in line with your personal circumstances and objectives. The division of assets between a couple has always been an important element of this but following the recent changes it will be even more so for many. K
Unlike many IFAs, Advison not only provides the initial advice you require but also produces regular personalised reviews of your Investments, Pensions and Protection Policies, enabling us to ensure the assets you hold are still relevant to your circumstances. We would be pleased to discuss your specific situation and plan the most appropriate course of action for you. For full details about Advison please see our advertisement below.
advison
Independent Financial Advisers
Advison is a small, friendly and reliable firm specialising in Investments, Retirement Planning and IHT Mitigation.
We offer a return to the traditional values only a smaller company can offer, a service we find
is appreciated by the more discerning client. We are happy to see you in the comfort of your own home or at our peaceful and relaxed country offices, which have plenty of free parking.
All staff at Advison are either AFPC or FPC qualified.
----------------This is your opportunity to speak with the experts----------------
• Planned Savings Magazine – National Estate Planner of the Year
• Regularly quoted in the national press for over 10 years
• Used as financial planning experts on BBC, Sky, CNBC, Bloomberg, Simply Money and the Money Channel • Choice Magazine’s Pensions and Trusts expert
Call Kevin or Andrew for a preliminary chat or to arrange an appointment.
No 7, Water End Barns, Eversholt (Nr Woburn), Beds. MK17 9EA T: 01525 288488 E Mail: ifa@advison.co.uk
advison ltd is an appointed representative of IN Partnership the trading name of The On-Line Partnership Limited which is authorised and regulated by the Financial Services Authority. Registered (England) No. 5009271
Phonebox Magazine 33