Speak to a Saltus expert...
Please fill in your details to arrange a financial review with one of our financial planning or investment experts.
How it works:
- We will call you back to find out more about your aims and requirements
- We will arrange a meeting with one of our team at a convenient time, either over the phone, on video, at your home or workplace, or at one of our offices
- You will be able to ask any questions you have and find out more about managing your wealth with Saltus
- Your review will be at our cost and there is no obligation to work with us afterwards
Who we work with:
- Individuals with £250,000 or more in investable assets. This includes pensions, ISAs, other tax-wrappers and cash available for investment.
With just a little thought and planning, you can save yourself around 10% a year in tax.
This can be achieved simply by using one of the most common investment vehicles out there – an ISA. Most people think of ISAs as a cash product, when in fact they are a much better home for investments. ISAs are commonly advertised as tax-free bank accounts but, in reality, this isn’t actually much of a benefit!
Meet your financial needs and objectives…Speak to an expert
How can this be? Well, for basic rate taxpayers, the first £1000 of interest on your cash savings is already tax-free. Similarly, for higher rate taxpayers the first £500 of interest won’t be taxed. You’d have to save a fairly significant amount to exceed these levels of interest.
So, what is the key benefit of an ISA? They are completely free of income tax and capital gains tax.
The tax-free environment makes Stocks and Shares ISAs an important vehicle when growing your wealth, and you can invest in anything from funds to direct companies. Whilst you may well have paid income tax on earnings you put into your ISA, there will be no further tax to pay when you come to access your money.
This is the big difference to withdrawals from pensions, which are always taxed at your marginal rate. As such, it’s vital to have a balance of both pensions and ISAs. It ensures wealthier individuals, in particular, can access the income levels they require whilst keeping tax to a minimum.
One of the other benefits (or drawbacks, depending on how you look at it), is that you can access the money whenever you need it, compared with a pension, which is locked-up until you reach age 55. Having both a long-term pension and an easily accessed ISA in your armoury is a great way to stay prepared in case life throws something unexpected at you.
To illustrate the tax benefits of an ISA-pension savings split, if in retirement someone received £50,000 a year, wholly from their pension, they would pay £7,500 a year in tax. However, if that income was split 50/50 between a pension and an ISA, they’d only pay £2,500 a year in tax. You might notice that’s a 10% annual difference from just basic tax planning. Something you’d struggle to find through investment performance alone.
So, if you can, try to make the most of the wrappers available to you, balancing tax breaks now with tax breaks in the future to create your 10% income boost.
All authors have considerable industry expertise and specific knowledge on any given topic. All pieces are reviewed by an additional qualified financial specialist to ensure objectivity and accuracy to the best of our ability. All reviewer’s qualifications are from leading industry bodies. Where possible we use primary sources to support our work. These can include white papers, government sources and data, original reports and interviews or articles from other industry experts. We also reference research from other reputable financial planning and investment management firms where appropriate.
Saltus Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority. Information is correct to the best of our understanding as at the date of publication. Nothing within this content is intended as, or can be relied upon, as financial advice. Capital is at risk. You may get back less than you invested. Tax rules may change and the value of tax reliefs depends on your individual circumstances.
Find out more about our award-winning wealth management services…
Financial Advisory Firm of the Year
Client Relationships Award
Financial Services, Banking and Insurance Firm of the Year
Investment Performance Cautious Portfolios
Best Medium Firm
Investment Performance: Cautious Portfolios
Investment Performance: Balanced Portfolios
Financial Planning Firm of the Year: Small to Medium Firm
Financial planning can help you reach your goals in life, whether you want to determine when you can retire comfortably, bring organisation to your financial world or pass on your wealth effectively.
Pensions and retirement planning
Deciding when to retire is a challenging decision and can feel like a leap of faith. At Saltus, we gather information on all of your existing assets and then use our technology and expertise to show you exactly how to achieve the retirement you’re after.
Reducing your tax burden
How to structure your wealth and access income should be approached in a sophisticated way. A detailed financial plan may use pensions, ISAs, general investment accounts, offshore bonds and other tax wrappers to ensure you can draw your money in a tax-efficient manner.
Consolidating your wealth
Holding multiple investment accounts and pensions can mean they’re hard to keep track of and administer. We’ll help you overcome this by consolidating your accounts into a single plan so that you can understand your financial position with ease.
Protecting you and your assets
We protect our cars and houses without much thought yet you might be the most valuable asset in your family. Whatever your situation, we can provide advice to ensure you have the right level of insurance in place to keep your finances protected.
Passing on your wealth
Estate planning is more important than just having a Will. We’ll work closely with you to understand how estate planning, which has emotional as well as financial consequences, can impact your overall financial plan.
Significant life events
Significant life events can present great opportunities but also considerable challenges. Whether you are going through a business sale, divorce or are receiving a lump sum, we’ll help build a financial plan to meet your changing lifestyle.