Finance

Property Protection Trust

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Owning your home as tenants in common rather than joint tenants provide additional planning opportunities. This can potentially protect inheritance in terms of residential care fee assessment and marriage following bereavement.

A property protection trust is put in place so that the half share of the family home belonging to the first person to die passes into the trust (also known as a life interest trust). This allows the surviving spouse to benefit from the share of the house during their lifetime. Following the surviving spouse’s death, the property can then be passed on to either children or loved ones. By putting this trust in place, you are ensuring your assets are going exactly where you want them to go and giving you total peace of mind.

The benefits of a property protection trust are:

  • Each spouse now owns 50% of the property
  • Each spouse grants the surviving spouse a ‘right to reside’
  • Allows you to pass your property to your chosen beneficiaries
  • Each spouse can gift their 50% as they see fit (both halves of the property do not have to go to the same beneficiaries)
  • Allows you to nominate your chosen Executors/Trustees to handle the property on your behalf
  • Can be used as a tool for planning for care home fees

Please be aware that should the survivor remarry, not make a new will and then die, intestacy rules would see the new spouse taking a disproportionate amount of the estate. By severing the tenancy and creating a life interest trust in your wills (for the surviving spouse), this means your assets are going exactly where you want them to go and giving you total peace of mind. To preserve the residential nil rate band, property needs to pass to direct descendants.

Visit our page on trusts and protecting your family for more information.

Pension options video

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We outline the different options that are available at retirement including annuities, pension drawdown, uncrystallised funds pension lump sum and a mix and match approach.

Sustainable Development Goals Video

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We discuss The United Nations 17 Sustainable Development Goals and how we align our investment portfolios to one or more of these, whilst breaking these down into environmental issues, social issues and governance issues.

National Insurance Contributions

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Class 1 Employees (Primary)

2021/22
Earnings p.w.		 Employee 06.04.2022 – 05.07.2022 Earnings p.w. Employee
Below £184 Nil Below £190 Nil
£184 – £967 12% £190 – £967 13.25%
Over £967 2% Over £967 3.25%
06.07.2022 – 05.04/2023
Earnings p.w.		 Employee
Below £242 0%
£242 – £967 13.25%
Over £967 3.25%

Class 1 Employees (Secondary)

2021/22 Earnings p.w. Employer 2022/23 Earnings p.w. Employer
Below £170 Nil Below £175 Nil
£170 – £967 (U21s/apprentice U25s/Veterans) Nil £175 – £967 (U21s/apprentice U25s/Veterans) Nil
Over £170 (otherwise) 13.8% Over £175 (otherwise) 15.05%

Class 1A: Generally the employer rate on all benefits in kind is 13.8% for 2021/22 & 15.05% for 2022/23.
Employment Allowance reduces overall employer class 1 NICs by up to £4,000 for 2021/22 & £5,000 for 2022/23, subject to conditions.

Voluntary

2021/22 2022/23
Class 3 Flat rate = £15.40 p.w.
£800.80 p.a.		 £15.85 p.w.
£824.20 p.a.

Self Employed

2021/22 2022/23
Class 2 Flat rate =

 

 

If profits over

 £3.05 p.w.

£158.60 p.a.

 

£6,515 p.a.

 £3.15 p.w.

£163.80 p.a.

 

£11.908 p.a.
Class 4 Rate =

On profits

 9%

£9,568 – £50,270

Over £50,270

2%

 10.25%

£11,908 – £50,270

Over £50,270

3.25%

Income Tax Allowances

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Income Tax Allowances – UK

Allowances   2021/22 2022/23
Personal allowance (PA)* £12,570 £12,570
Married couple’s allowance (MCA) Ø Spouse/civil partner born before 6.4.1935 £9,125 £9,415
Minimum MCA £3,530 £3,640
Blind person’s allowance £2,520 £2,600
Marriage allowance** £1,260 £1,260
PA income limit £100,000 £100,000
MCA income limit £30,400 £31,400
Dividend allowance £2,000 £2,000
Personal savings allowance Basic rate tax taxpayers £1,000 £1,000
Higher rate taxpayers £500 £500

* PA reduces by £1 for every £2 adjusted net income exceeds PA income limit.

ø MCA relief at 10% if at least one spouse/civil partner born before 6.4.1935. Reduces by £1 for every £2 adjusted net income exceeds MCA income limit, but not below minimum.

** One spouse/civil partner can transfer up to 10% of their PA to the other, provided neither is liable to tax above the basic rate.

Income Tax Rates

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Income Tax Rates 2022/23

Non-savings, non-dividend income – England, Wales, NI

2021/22 Band 2022/23 Band
Basic rate: 20% £0 – £37,700 Basic rate: 20% £0 – £37,700
Higher rate: 40% £37,701 – £150,000 Higher rate: 40% £37,701 – £150,000
Additional rate: 45% Over £150,000 Additional rate: 45% Over £150,000

Non-savings, non-dividend income – Scotland

2021/22 Band 2022/23 Band
Stater rate: 19% £0 – £2,097 Stater rate: 19% £0 – £2,162
Basic rate: 20% £2,098 – £12,726 Basic rate: 20% £2,163 – £13,118
Intermediate rate: 21% £12,727 – £31,092 Intermediate rate: 21% £13,119 – £31,092
Higher rate: 41% £31,093 – £150,000 Higher rate: 41% £31,093 – £150,000
Top rate: 46% Over £150,000 Top rate: 46% Over £150,000

Savings and dividend income – UK

  2021/22 2022/23
Savings income – basic rate 20%* 20%*
Savings income – higher rate 40% 40%
Savings income – additional rate 45% 45%
Dividends – basic rate 7.5% 8.75%
Dividends – higher rate 32.5% 33.75%
Dividends – additional rate 38.1% 39.35%

*0% starting rate on up to £5,000 of savings income for 2021/22 & 2022/23.

Not available if non-savings/non-dividend income exceeds this limit.

Trusts Standard Rate Band £1,000

Financial advice percentages

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Attitudes of over 50s towards their pensions

  • 26% – Stated that they only started paying into their pension after they turned 30 years old
  • 49% – Regret not saving into their pension earlier
  • 64% – Wish they had contributed more into their retirement savings at an earlier stage

Taking professional Financial Advice is KEY

Worryingly, when over 50s  were asked about financial advice they said:

  • 70% – They have never sought professional financial advice regarding their pension
  • 30% – They feel they don’t know what they are doing and don’t need financial support
  • 10% – They rely on their family and friends for support and advice

However, after heading that they could add as much as £47,000 to their pension (over a decade) by taking professional financial advice, half of them say they would.

Source data: 1,034 UK adults over the age of 50 (retired and nonretired) interviewed between 31.01.2022-07.02.2022
[1] https://www.retirementlivingstandards.org.uk/news/retirement-living-standards-updated-to-reflect
[2] https://ilcuk.org.uk/”inancial-advice-provides-47k-wealth-uplift-in-decade/
[3] https://www.bbc.co.uk/news/business-42193251

Cashflow Modelling

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Cash flow modelling allows us to bring your financial future to life together.

We can help to:

  • Plan and analyse your financial goals
  • Project them forwards over time
  • See how changing circumstances will impact your plan
  • See how likely it is you will achieve your goals
  • See the actions you need to take along the way

ISA Allowances

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Overall Limit
ISA 2021/22* £20,000
ISA 2022/23* £20,000
Junior ISA/Child Trust Fund 2021/22 £9,000
Junior ISA/Child Trust Fund 2022/23 £9,000

*Eligible savers can contribute up to £4,000 of the overall ISA limit to a Lifetime ISA.

Since 6.4.2015, the spouse/civil partner deceased ISA saver (who died on/after 3.12.2014) has an additional ISA allowance equal to the value of the deceased’s ISA(s) at the date of death.

This information is based on our understanding of the Chancellor’s 27th October 2021 Budget & 23rd March 2022 Spring Statement announcements, the Scottish Budget announcements from 9th December 2021, and the Wales Budget announcements from 20th December 2021

Individual Savings Accounts (ISAs)

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ISAs enable you to minimise the amount of tax you pay on your hard-earned money. There are several different ISA options and some ISAs give you instant access to your money and can be used to plan your finances for the short term. However, if you have longer-term savings goals, you can invest in an ISA for your future.