Tax efficiency is a major consideration when undertaking any form of financial planning although it shouldn’t necessarily be the driving force. There is a well known investment phrase which warns against the ‘(tax) tail wagging the( investment) dog.’ Essentially saving tax at the expense of a poor investment can make the exercise pointless and where very attractive tax breaks are offered it can come with great investment risk.
Having said all that there are basic tax efficiencies that can be applied to most clients financial affairs and these will form part of the regular ‘housekeeping’ we will carry out when advising and regularly reviewing a clients capital. These will involve vehicles that can assist in sheltering income, Capital Gains and Inheritance Tax. On this latter point, succession planning to the next and future generations can become a very important aspect of many clients plans in conjunction with their ongoing lifestyle needs.