Simone Smit | Ascot Wealth Management

June 6, 2019January 31, 2022

Tax Talks With Greg – Tax Allowances for 2019/20

Tax Allowances for 2019/20

We wanted to simplify the tax changes and allowances for you so here’s one easy place to look.

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Dividend tax rates

There is no change to dividend tax rates in 2019/20:

The tax-free dividend allowance is £2,000
Basic-rate taxpayers pay 7.5% on dividends
Higher-rate taxpayers pay 32.5% on dividends
Additional-rate taxpayers pay 38.1% on dividends.

Pensions contributions receive full income tax relief, this means it only costs basic rate taxpayers £80 to save £100 (20 per cent tax relief) while higher rate taxpayers only need to pay £60 to save £100 (40 per cent tax relief).

Ascot Wealth Management Limited is authorised and regulated by the Financial Conduct Authority reference 551744. Our registered office: Scotch Corner, London Road, Sunningdale, Ascot, Berkshire, SL5 0ER. Registered in England No. 7428363. www.old.ascotwm.com Unless otherwise stated, the information in this document was valid on 3rd February 2017. Not all the services and investments described are regulated by the Financial Conduct Authority (FCA). Tax, trust and company administration services are not authorised and regulated by the Financial Conduct Authority. The services described may not be suitable for all and you should seek appropriate advice. This document is not intended as an offer or solicitation for the purpose or sale of any financial instrument by Ascot Wealth Management Limited. The information and opinions expressed herein are considered valid at publication, but are subject to change without notice and their accuracy and completeness cannot be guaranteed. No part of this document may be reproduced in any manner without prior permission. © 2017 Ascot Wealth Management Ltd. Please note: This website uses cookies. To continue to use this website, you are giving consent to cookies being used.

May 30, 2019May 30, 2019

Join us for a tax-related power session!

The complexity, sophistication and sheer volume of tax legislation, case law and practice have increased exponentially over the last decade or so, and most taxpayers are not even sure what they need to be aware of and what they can do to mitigate their liabilities. For this reason, we have decided to host a tax power session to address all the concerns you may have.

Join us on the 4th or 6th of July for an informative tax-related power session, where you will have access to AWM’s award-winning qualified and experienced advisers and gain deeper insight into how you can easily integrate tax strategies into a diversified financial plan.

We will post more information on the topics we will be discussing in these sessions. Topics include Retirement Planning Strategies, early Inheritance Tax Planning and the new world of Enterprise Investment Schemes (EIS) and Venture Capital Trusts (VCT) – both government approved tax efficient investments. This will be your opportunity to receive easy-to-follow guidance on these tax matters. Invite your friends and family for an informative few hours where you will gain deeper insight into the complicated world of tax.

This is a free seminar that will be held in Surrey and for those who are unable to attend this local session, AWM has arranged to host another session in London. Spaces are limited so book now to avoid disappointment.

Book a seat in LONDON

Book a seat in SURREY

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May 14, 2019January 31, 2022

Another winner at Ascot?

It’s been quite a year so far. Earlier this year Ascot Wealth Management was named Adviser Firm of the Year (South East). You can read all about it here. Of course we were thrilled to be recognised for such a prestigious award. Since then we have been growing from strength to strength and have some more exciting news to share with you.

We are delighted to announce that AWM is in the running for the prestigious Retirement Planner Awards 2019 in the Best Individual Pensions Advice Firm of the Year*, Best Pension Freedom Service categories and our own Catriona McCarron is shortlisted as a candidate for Young Retirement Planner of the Year in the UK** award.

The awards aim to highlight the importance of retirement planning in the UK and celebrate how role providers and intermediaries are rising to the challenge of pension provision. Particularly in light of the 2015 pension freedoms and the increasing number of pension scams.

This nomination is as one of the finalists is a real testament to all the hard work AWM put in both collectively and individually every day.

The winners will be announced on Friday 14th June 2019 in London.

If you need pension advice, don’t hesitate to contact us today. Remember, the initial assessment is free.

*London, the South East and East Anglia

** excluding London

March 14, 2019January 31, 2022

Caught in the tax trap?

You got a pay raise and your salary is now on the threshold of the 40% tax rate. How do you avoid the potential tax trap?

Luckily, it may be possible to avoid it after all because any contributions you make into your pension are deducted from your salary before you are taxed. In other words, your taxable salary is reduced.

Example 1

Sally earns a gross salary of £50 000. On this salary, she pay basic rate tax of £6 900 and higher rate tax of £3 650. If Sally was to make a pension contribution of £3 650, her gross taxable income would reduce to £46 350 saving her £1460 in tax thus avoiding the tax trap.

Total tax savings after pension contribution = £1 460 (40% tax trap).

Example 2

Barbara earns a gross salary of £110 000 and is a Higher Rate Tax payer

Barbara contributes £10 000 of her salary to her pension on an annual basis reducing her taxable income to £100 000 per year. By doing this, she saves £6 000 on her potential tax bill of £34 360.

*Personal allowance of £6,850 due to the tapering of income above £100,000 (whereby you sacrifice £1 of personal allowance for every £2 of income until your personal allowance is £0)

Total tax savings after pension contribution = £6 000 (60% tax trap).

Remember that the Tax Year end is coming up on 5 April. Act fast so we can help you submit those tax returns!

Note: Don’t leave it until the last minute. Remember to allow 10 working days to get funds in place.

March 8, 2019January 31, 2022

In the spotlight – adviser, Catriona McCarron

With it being International Women’s day today we thought it would be a good idea to shine the spotlight on adviser, Catriona McCarron. She was recently nominated for the 2019 Women in Financial Advice Award; the awards are designed to celebrate women in finance as women are still heavily outnumbered 1 to 6 in the industry. This nomination comes less than a month after Ascot Wealth Management took home the 2019 Professional Adviser Firm of the Year Award for the South East.

When asked why she chose to become a financial adviser she said “I chose this profession for the opportunity to make a difference on the ground level. With both my parents in finance I’ve been brought up with a positive attitude towards financial education, which gave me a constructive outlook to cash management from a young age. Financial advice is a career path paved by a certain generation, therefore I wanted to come into the sector with a fresh mind and greater my understanding of how clients benefit from reviewing their assets.”

We asked her a few more questions:

What was one of the most defining moments in your career?

I was recently named one of The Times top 250 advisers in the UK by VouchedFor, a site similar to Trip Adviser for financial services. This was a defining moment for me because it showed I’m on track to continue making a positive impact on my client’s finances. In the same week as my VouchedFor recognition in The Times, AWM won top Financial Adviser Firm in the South East, an award previously won by firms with a huge industry presence. This was a defining moment as it reminded me why small firms have a place in the industry.

Who do you most admire in life and why?

My admiration will always be for my parents. They’ve inspired me to follow my dreams and assisted by studies to get me there. In addition to recognising the role my parents have played in getting me where I am today, it’s also important to be influenced by other women leading the way in Finance. At university my dissertation focus was on Women on FTSE 100 boards, exploring whether the low levels of female presence was due to social or policy factors. During my research I became motivated by the women standing up to male board pressure. One of the women I particularly admired was Carolyn McCall, CEO of EasyJet since 2010. Carolyn has three teenage children and a healthy social life, whilst working to change business culture to be inclusive for all.

If you could witness any event of the past, present, or future, what would it be?

Sensibly speaking I would fast forward two years to see the full effects of Brexit to give greater clarity to my clients current planning! I would also like to sit as a fly-on-the wall for Theresa May’s discussions, maybe chipping in if allowed…

Happy women’s day to you all!

Who you are tomorrow begins with what you do today – Tim Fargo