The value of your investment can go down as well as up and you may get back less than you paid in. Laws and tax rules may change in the future. Your own circumstances and where you live in the UK also have an impact on tax treatment.

Why do you need tax planning?

Many of us can build up quite a large amount of savings throughout our lives. Much of this can be in our pension plans, which we and our employers pay into each month. If you’re careful about saving for retirement, it can soon add up.

As our total savings might increase, so do the tax implications. The UK tax system is not always straightforward. It can be difficult to understand how tax can affect you. It’s not obvious how you can take advantage of the various tax allowances and reliefs on offer.

That’s where professional tax planning advice comes in. It can help you organise your savings and investments so you don’t pay more tax than you need to. It can also manage your plans to help you avoid large tax bills later on in life.

How tax planning can help you

Here are just a few examples of how tax planning can make a difference:

  • Pensions and retirement income: Make the most of your Pension annual and lifetime allowances. Plan to take your pension so you benefit from your tax-free pension lump sum. Manage how your pension pays out to be income tax efficient.
  • Investments: Tax planning could help you make the most of Capital Gains Tax Annual Exemption, your Dividend Allowance and your remaining Individual Savings Account (ISA) allowance so your investments could potentially grow.
  • Savings: If you like to have accessible cash savings, understand your savings allowance.
  • Income tax: The amount of tax you pay when you cash in some investments can depend on your income tax rate. Planning your income from all sources can have a significant benefit.
  • Inheritance tax: Make sure you don’t pay unnecessary inheritance tax so that the people you choose will inherit as much as possible.


More useful advice

Financial advice can make a long-term difference to your financial health and well-being. Look at how it can help you.