Use it or Lose it - Tax Year End Planning 2023
‘Use it or lose it’ Your Guide to the allowances and opportunities for the 2022/23 tax year and th the changes from the 6 April 2023. Sarah Hogan Company Director and Chartered Financial Planner www.kbafinancial.com
Use it or lose it – Tax Year End Planning 2023 www.kbafinancial.com It’s that time of year again when you need to consider what allowances you th need to ‘use or lose’ before the 5 April 2023 and be aware of what changes are coming. Please do email [email protected] to action any points, discuss your needs or call the main office on 01942 889883 to have a discussion with one of our team. Remember we now have offices in Leigh, Bury, Nantwich and Southport and our satellite office in London as well as offering telephone and remote meeting options. The following does not relate to the rules in Scotland where things are different. The th content is correct as of the date of writing 24 January 2023. We are not tax advisers; this is based on our understanding of the rules and how it can relate to your planning. Please ensure you contact your tax adviser or accountant to discuss anything related to your personal circumstances, or if there are other allowances/reliefs available not documented here. This is an overview of the main points that relate to our clients. Income tax and thresholds Your Personal Allowance The personal allowance is the first element of your income which you don’t pay tax on. Technically the personal allowance is a 0% banding and is set at £0 - £12,570 for the 2022/23 tax year. This is now set to be frozen until 2028 so if your income is going up then you may pay more tax over the coming years. Make sure: 1. You have utilised your personal allowance for this year or transferred unused allowance to your spouse/civil partner where available under the ‘marriage allowance’ rules.
Marriage Allowance lets you transfer £1,260 (for the 2022/23 tax year) of personal allowance from a non/low earner to their spouse assuming their spouse is not a higher rate th taxpayer or above. This can reduce your tax bill by £252 and you can backdate it to 5 April 2018 (4 tax years). If your partner has unfortunately since passed away, you can still claim but you may need to call the relevant team at HMRC. https://www.gov.uk/apply-marriage- allowance 2. You can utilise your personal allowance by drawing a pension payment from a flexible pension but remember this will activate the Money Purchase Annual Allowance, which impacts what you can put back into a pension in the future so be careful. 3. You can also declare a dividend or take a payment from certain types of bonds. Any flexible taxable payment from a pension (not the tax-free cash), activates the Money Purchase annual allowance, MPAA, which means you can only then put £4,000 gross per annum back into a pension. This can be a problem if you have taken from one pension and are paying into a workplace pension elsewhere or wish to pay in from a limited company. Be careful, don’t slip yourself up. The Higher Rate Tax Threshold This increases to £50,270 for the 2022/23 tax year which means that until you earn more than £50,270 you won’t pay higher rate tax and you’ll pay only additional rate tax on income above £150,000 (except for the £100k trap – see below). Things to be aware of with higher rate tax: 1. If you are a higher rate taxpayer and paying into a pension, make sure you are claiming higher rate tax relief back through self-assessment each year. You don’t automatically have to fill in a tax return until your income is above £100,000pa but for anyone earning over £50,270 and paying into a pension (unless via salary sacrifice), make sure you claim the extra 20% relief back. According to ‘pensionbee’ over 1.5 million of high earning people in the UK failed to claim an estimated £810m in tax relief in the 2018/19 tax year alone. If you earn £50,270 or above and are paying into a pension, make sure you claim it back. You can also go back 4 tax years for anything you haven’t claimed. 2. Earners over £50,000 who are claiming child benefit will be subject to a tax charge equal to the benefit they shouldn’t have claimed. Earners over £60,000 are not entitled to child benefit at all. You can keep your income below this threshold (or the higher rate tax threshold) by paying into a pension and therefore maintaining this benefit.
Income over £100,000 – The trap! The 60% tax band. People with income of over £100,000 start to lose their personal allowance by £1 for every £2 of income above £100,000. This means an effective rate of tax on income between £100,000 and £125,140 of 60%. (See the pensions section below on how to get this back). You are required to complete a tax return if you earn above £100,000pa and your tax code is altered accordingly, or a tax demand sent. Loss of free childcare You will lose all free childcare hours if you earn above £100,000 whereas someone earning £99,999 can still have the 30 hours free so £2 increase could cost you thousands. This can have a big impact for those with children in nursery and might be something to consider if a pay rise or bonus is on the table, or if you are debating taking an extra dividend from the company, maybe hang fire. It might only be a £1000.00 pay rise and yet could cost you thousands in nursery fees. Can you take a pension payment instead of the bonus which would keep your income below £100,000? For someone with free nursery hours earning say £98,000 and their income goes above £100,000 with overtime or a bonus, the effect is disastrous. They would lose their nursery hours completely which could be worth a lot more than the pay rise and they will also be hit with a 60% effective tax rate above the £100,000. Net income and disposable income after expenses would be dramatically impacted! If you’re over your annual pension allowance (an NHS consultant perhaps) and cannot pay into a pension to improve the situation, then this is a major headache. It's one to plan for and one to make sure you have done everything you can. Speak to the team on how to help. Additional rate taxpayers Currently the 45% tax rate is only charged on income above £150,000. As of April 2023, this will reduce to apply to income above £125,140. Due to the reduction or loss of the personal allowance between £100,000 and £125,140 this means that someone earning or having income of (for example) £140,000 would pay 40% on income between £50,270 to £100,000, an effective rate of 60% on income between £100,000 and £125,140 and then 45% above this figure. Pension contributions for those who haven’t maximised their annual allowances and are in this bracket are a must.
Pensions Remember you can personally make a pension payment equal to 100% of your earned income (not including dividends or rental income) into a pension subject to the £40,000pa annual allowance. Earned income is essentially salary, bonus, P11D benefits or net profit. As a basic rate taxpayer this means you could invest £32,000 net and you would receive tax relief of £8,000 directly into the pension and as a higher rate taxpayer you would get another £8,000 in tax relief by claiming through self-assessment, this means the £40,000 contribution has only cost you £24,000 (higher rate taxpayer) or £32,000 (basic rate taxpayer). So make sure you claim! The tax relief is even better if you have income above £100,000 and if your income is heading even higher, use it now before you are subject to the tapered annual allowance (see below). If you haven’t used your previous three tax years allowances, you can potentially carry some of this forward, assuming you have total income of more than your actual contribution when you make it and you go back to the oldest year, after you have used the current year: For example: • Client A Earns £30,000 in the tax year but has £100,000 in cash which they would like to put into a pension, they can only put in 100% of their earnings which is limited to £30,000 gross pa. • Client B Earns £100,000 in the tax year and has £100,000 to put into a pension. They can invest £40,000 gross to use this year’s allowance and if they have £60,000 of unused allowance from the previous 3 years, they can invest the remaining £60,000. • Client C Earns £200,000 per annum and hasn’t invested into a pension in the previous 3 years. They can invest £40,000 for this year, plus the three previous years’ allowances, meaning an additional £120,000 can be invested equating to a total of £160,000 gross as they have earnings of more than the total payment in the year that the payment is made. What does this mean? If you have cash available and are a higher earner, consider putting it into your pension. On th the 6 April 2023, we will lose the ability to top up the 19/20 tax year. Use it or lose it. You have to maximise this years’ £40,000 first, and then go back to the 19/20 tax year, so unless you are putting more than £40,000 (or your annual allowance if less) in, you won’t be th able to go back to that tax year and it will be gone forever as of the 6 April. Don’t forget the Lifetime allowance for Pensions is now frozen and currently stands at £1,073,100 for the 2022/23 tax year. This lifetime allowance includes pension benefits from defined benefits schemes and money purchase schemes. This allowance is now frozen until
2028, pushing more people into additional tax on their pensions. This could apply whilst you are alive or on death pre 75 and can be mitigated by effective planning. If you have lifetime allowance issues or are heading that way, then speak to one of the team to understand what that means. a) Pensions and Limited Company Owners: What if I don’t have capacity to pay this amount into a pension but I am a limited company director? Your company can pay into your pension for you. If the company has the profits of more than the pension payment and the payment is ‘wholly and exclusively for the purpose of trade’ then they can make the payment on your behalf and receive corporation tax relief as a ‘business expense’. They can also put in the full £40,000 even if you take a lower salary. th This is even more important as corporation tax rates increase on the 6 April 2023 for any company with more than £50,000 in profits. The new corporation tax increases are between 19% and 25% from 6th April 2023. All companies with less than £50,000 in profits will pay 19% and those with more than £250,000 will pay 25%. Those in between will have a calculation done based on the profits of the business and the corporation tax rate will be somewhere between the two. The question then is, if you are likely to be on a higher rate of corporation tax next year, do you (as company director), wait to do a bigger pension payment next year? The other question is, what if the markets go up between now and the new tax year and the difference in the tax saving would have been offset by investment returns? And finally, how do you know what your profits are going to be in 2023/24? Lots of unknowns for company directors to consider so try and make an informed decision based on your own personal circumstances. b) Higher Earners and Pensions As previously mentioned, those who earn above £100,000, for every £2 of income above this threshold you lose £1 of your personal allowance which means that when you earn above £125,140 (for the 2022/23 tax year), your personal allowance has been completely diminished and you would pay the equivalent of 60% tax on this portion of income!!!!! All is not lost, you can get this back by paying into a pension….. If an individual who earns £125,140 pays £20,000 net into a pension (£25,000 gross), they would reduce their tax bill by £10,000 (claimed via self-assessment) and they would get £5,000 in tax relief into a pension. That is a total of £15,000 in tax relief on the £25,000 earned above £100,000 which equates to 60% relief. Meaning the pension payment has cost £10,000 to make £25,000. This gets them the personal allowance back (actually, you’d need to pay £25,112 to get the full allowance but I am keeping the maths simple).
c) Even higher earners and tapered annual allowance – Is your income above £240,000pa? If it wasn’t technical enough already, it’s about to get worse. The tapered annual allowance th was introduced on 6 April 2016 and it results in a reduction in your annual allowance for higher earners. For taper to apply, the limits on ‘threshold income’ and ‘adjusted income’ must be exceeded. For every £2 of adjusted income over £240,000, an individual’s annual allowance is reduced by £1 down to a minimum of £4,000. Prior to 2020/21, this adjusted income level was set at £150,000 and the minimum was £10,000. This means your current annual allowance and previous years may be different as both your income and the rules may have changed in that time. Those with adjusted income of over £240,000 will have less than the £40,000 annual allowance. Those with adjusted income over £312,000 will be subject to a maximum (tax relievable) pension allowance of £4,000. Remember this applies to active defined benefit and defined contribution pensions and therefore your local government, teachers or NHS scheme could be taking you over this limit and creating a tax charge. Speak to an adviser if you think this affects you. d) Pensions for Minors and Non-Earners - Give your Grandchild a million pound pension fund. Did you know that a child can have a pension from 3 months old? Yes, its true, you can start your child, grandchild, niece, nephew etc on the road to a secure financial future by starting their pension planning early. As a minor, £2880.00pa can be invested into a pension per annum which attracts tax relief from HMRC of £720.00 meaning the total contribution into the pension is £3,600pa (Only £2,880 from you personally). This is then invested and has the beauty of compound returns until their retirement age which, if the amount is invested every year until they are 18, will have a huge impact on their pension planning. As it is in their name, if you were to die it is theirs, no inheritance tax to consider as the £2880.00 would be below the annual gifting allowance. Based on a 5% net return and a retirement age of 65, the pension would be worth £1,000,000 just from the payments from 0 -18 years old (and hopefully they would add to it later, on top). A million- pound pension fund. Now that is a way to leave a legacy. This is the same for non-earners, they can invest the same £2880.00pa and benefit from the £720.00 in tax relief so if you have a spouse that is a homemaker or is off work for whatever reason, don’t let them have a gap in their retirement planning, if you have capacity to do so make sure you utilise this allowance as you cannot get it back if lost. You can even do this if you are retired and under 75, you will still get the tax relief.
Make 6.25% instantly with no investment returns required You put £2,880.00 into a pension. The government top it up with £720.00 Total £3,600 Take it straight back out again. 25% tax free cash = £900 £2,700 drawn flexibly, if you are a basic rate taxpayer = tax of £540.00 Net payment £2,160 plus the £900 tax free cash = £3,060.00. That’s a 6.25% instant return. e) Accessing Your Pension If you haven’t utilised all of your personal allowance (£12,570 for 2022/23), you could draw down on some of your pension in order to maximise this allowance. Current rules allow you th to access your pensions from age 55. This increases to 57 from 6 April 2028. Remember, when you access your pension in a flexible manner (the taxable element of the plan and not just the tax-free cash), you will activate the ‘money purchase annual allowance,’ which means you can only reinvest £4,000pa gross into a money purchase pension which could cause an issue if you are still working and contributing to a pension. Be careful and take advice. https://www.gov.uk/government/publications/reducing-the-money-purchase-annual- allowance/reducing-the-money-purchase-annual-allowance f) State Pension Changes. Missing NI contributions – Check and top up your state pension whilst you still can – deadline April 2023 *For men born after 5 April 1951 and women born after 5 April 1953. If that’s you, then read on. If you were born before this, then you are on the older system. What’s this all about? th The new flat rate of state pension started on the 6 April 2016 and the amount you get depends on how many qualifying years you have. On the old system which consisted of a basic state pension and a top up dependent on things such as SERPs and contracting out, you needed to have 30 qualifying years and the level of pension in some cases was dependent on levels of earnings in the past. On the new system, everyone can get a flat rate of state pension but as a starting point you need to have 35 qualifying years as a minimum. Now for those who started their NI record before 2016, it’s not as simple, as some of your record is based on the old system and some on the new system. For anyone in this position, there are transitional arrangements in place. These mean you can pay to ‘plug the gaps’ for any gaps in your record as far back as 2006. However, this
arrangement finishes in April 2023 and after that you can only fill gaps within the last 6 years. What can you do and what do you need to know? 1. Check your current record. The first step is to check how much state pension you’ll get based on your current record and how much you will get if you continue to work to state pension age. You can do this on the government’s website, but you’ll need to register for a gateway ID. https://www.gov.uk/check-state-pension If you haven’t already got full entitlement or are not on track for the full state pension before you finish work (currently £185.15pw), then you need to check the gaps in your record and there should be a link in your forecast to do so. That will then show you how many years since 2006 are incomplete and it may be worthwhile paying to fill these years to get a higher state pension (see below for things to consider). Remember, post April 2023 you will only be able to go back 6 years, so any older years need completing now if you intend to do so. For anyone that was previously ‘contracted out’, it is even more difficult to work out and a call to the Department for work and pensions would be your best option. Most people in a public sector or final salary scheme were contracted out at some point in the past. 2. Make sure you have claimed any free national insurance credits. There are certain other times in your life when you could have been awarded NI credits when you may not have been and you need to claim manually. For example, statutory maternity, caring for relatives or a spouse of the armed forces. The full list of what you can claim for and how to manually apply is detailed here https://www.gov.uk/national- insurance-credits/eligibility These may not have been automatically added to your record. You should automatically have been applied NI credits in all of the following scenarios: • Employed and earning at least £6,396 a year • Self-employed with profits of at least £6,725 a year ('small profits threshold') • Claiming universal credit • On jobseeker's allowance and not in education/working for 16 hours or more every week • On maternity allowance • On income support and providing 'regular and substantial care' • In a couple and both getting working tax credits (only one of you will get NI credits) • On carer's allowance • A parent registered for child benefit for a child under 12
• On employment and support allowance, or 'unemployability supplement' or allowance • Over 18 and Jobcentre Plus sent you on a government-approved training course lasting up to a year 3. Should you pay to boost your state pension? Now there is the question. You have a window of opportunity until April 2023 to boost your state pension and then the gaps you can go back and top up will reduce to 6 years. However, it is not always a simple decision. If you are close to state pension age, are no longer working and therefore cannot get 35 qualifying years anywhere else, plus you have less time to wait until the pension payments start, then it could be a no brainer. If you are younger, then it’s a tougher decision. You may work and complete the required years before retirement anyway and therefore you will have paid for no reason. You may die before your state pension and not see the benefit of it. The younger you are, the more likely you will work the required amount, but what the future holds is something no one knows so it must be personal decision. Anyone under 45 for example should have enough time to top up unless you are sure you won’t make them up, for example if you move abroad or stop work early and are not entitled to any of the other credits. Buying national insurance years can vary in costs depending on whether it’s a full year you are topping up, you’re self-employed or it’s the previous two years but as a guideline it costs £824. However, it adds up to an extra £275pa which means, if you live for at least 3 years of receiving the increased income, you’d be in a profit. You could look at life expectancy projections to see if you think it’s going to be worth it, but it must be a personal decision and take your own health and future into account. You also must be aware that not everyone would get this full benefit, if you are a higher rate taxpayer there will be tax on the additional income elsewhere from the state pension, using more of your personal allowance and low earners might be better with pension credit. Make sure you do your research for your own circumstances before making a decision. This is an overview of the changes that are coming but you need to make sure to speak to the Pension services available to get an accurate picture for you personally. If you are not at state pension age, call the Future Pension Centre – 0800 731 0175 If you are already at state pension age, call the Pension Service – 0800 731 0469. If you have decided to buy extra years, which you can do in one go or over time then you will need an 18-digit reference number from HMRC which you can get over the phone. You then need to pay through your bank to HMRC or by cheque. This process can take a few weeks so don’t leave it until the last minute to action. Also, please note that if you are
already receiving a state pension, they will only increase the payments from the date you made the payment not the date you started receiving the state pension. This is an overview to give you the information necessary to help you make the right decision for your circumstances. We cannot advise you on state pension matters and you need to speak to the relevant departments but for any other financial planning needs that we do advise on (https://kbafinancial.com/who-we-work-with/), please do get in touch.
Other Allowances and Points to Note 1. Inheritance tax The £325,000 inheritance tax nil rate band per person remains unchanged and is now frozen until 2028 and the main residence nil rate band remains at £175,000 per person (subject to the maximum of the value of your house if lower and only if the property is left to a direct descendent – therefore this can be impacted by trusts and those without children or grandchildren). Inheritance tax is paid on second death for married couples and civil partners, and you can inherit up to 100% of your late spouses unused bandings. The Residence Nil Rate Band (the £175,000 to use against the house) is also lost by £1 for every £2 that your estate value is higher than £2m, which includes the value of business assets or other assets that benefit from business property relief. That means if you have an estate of £2.35m as a single person or £2.7m as a married couple, including business assets, you will only have your nil rate band of £650,000 or £325,000 to offset against the estate. These frozen bandings until 2028, will push more estates into paying inheritance tax. The rate of inheritance tax is 40%. This means HMRC could be your biggest beneficiary. In 2021 to 2022 according to gov.uk, £67.4 billion was paid in inheritance tax. It is the nations most hated tax and as former Labour Chancellor Roy Jenkins famously once said "Inheritance Tax is a voluntary levy paid by those who distrust their heirs more than they dislike the Inland Revenue". Why did he say this? Because with effective planning, it is completely avoidable. What are some of the ways to effectively plan for inheritance tax? 1. Wills set up correctly. 2. Trust planning – on death and whilst alive. 3. Gifting. 4. Utilising annual allowances. 5. Gifts out of normal expenditure. 6. Setting up life cover to pay the tax bill. 7. Loan trusts for investments. 8. Discounted gift trusts. 9. Investments benefitting from business property relief. 10. Pensions To name but a few…
Remember, pensions, if they are set up in the correct way, are outside of your estate for inheritance tax purposes so you may want to consider not drawing on them until you need to and draw on other savings and investments first. If you want to ensure your pension passes down the generations, it needs to facilitate successors/dependents/nominee’s drawdown and not all pensions do allow this. Speak to us to check that your pension is set up in the right way. Don’t forget that for inheritance tax, you also have an annual gifting allowance of £3000 each and other gifting allowances you may be able to utilise which will be effective for inheritance tax planning. You can also use the ‘gifts out of normal expenditure’ rules to pass money to the next generation tax efficiently. Make sure any life cover policies you have are set up to pay into trust on death so they do not add to the estate and cause more tax to be payable. Don’t forget that inheritance tax is due before probate is granted, so how will your beneficiaries afford it? 2. Individual Savings Accounts (ISA) The ISA allowance for the 2022/23 tax year is still £20,000. If you don’t use it, you lose it. It can be invested in cash or stocks and shares ISAs or a combination of both. You can transfer ISAs as well and not lose previous years allowances. Remember that children can also have a Junior ISA and you can invest £9,000pa (2022/23) on their behalf. Also note that with Junior ISA’s, the child controls the account from age 16 and can access it from age 18. If your child is 16 or 17 this tax year, they can benefit from both the Junior ISA and the Adult ISA (in cash only) and therefore have an ISA allowance of £29,000 in those 2 years. Perfect for university planning. What is a lifetime ISA? A lifetime ISA can be set up to buy your first home or save for later life. You must be 18 or over but under 40 to open a Lifetime ISA. You can put in £4,000 each year until you are 50 and the government will put in a 25% bonus, a maximum of £1,000 each year. The Lifetime ISA limit counts towards your annual ISA limit of £20,000. The ISA can be cash or stocks and shares or a combination of both. You can withdraw money from your Lifetime ISA if you’re: - Buying your first home. - Aged 60 and over. - Terminally ill with less than 12 months to live. If you take it out for any other reason, you’ll pay a withdrawal charge of 25% which essentially recovers what the government put in.
3. Dividend Allowance th The dividend allowance remains untouched at £2000pa until the 6 April 2023 which can be utilised with company dividends as a shareholder for a limited company or via an investment portfolio. If you have shares, an investment account or a limited company then make sure you are taking your allowance and gaining tax free income. th th This is reducing to £1,000 on 6 April 2023 and £500 on the 6 April 2024. If you have: 1. Shares from a business – this may change how you structure your income when you take account of the changes in corporation tax, dividend rates and income tax. 2. A collective investment such as an investment account or unit trust – you may now want to consider whether an investment bond is a more tax efficient vehicle. Speak to your adviser. 3. Shareholdings – the dividends from these may now cause you a tax charge. Would they be better in other wrappers? 4. Capital Gains Tax Allowance th Remember that every individual has a capital gains allowance of £12,300 until 6 April 2023 which can be utilised against gains from property sales, business sales, investment accounts and direct shares to name but a few. If you don’t use this allowance, you lose it. Capital gains tax is different for different types of assets and is also one of the lowest taxes, but will it remain so? Assets can be split between spouses to use two allowances so again; ensure you have your assets set up in the most tax efficient way. Capital Gains can be rolled into certain types of investments (called EIS schemes) to defer the tax payment until later or until death so if you have had a gain in this tax year contact your adviser for more information. For more information on VCT’s and EIS schemes please contact us. The capital gains tax allowance is reducing to £6,000 on the 6th April 2023 and then £3,000 th on 6 April 2024 so if you are considering selling assets, should you be doing it now? But what about losses? Certain investments, property, shares may be currently experiencing a loss. Either because of market conditions or what you have spent on a property. There can be benefits in selling an asset during a loss because capital gains losses can be rolled over to use against future gains. For example, if your investment account is currently showing a loss, your adviser may suggest doing a fund switch to crystallise the loss which you can use if you are selling a buy
to let property with a gain (for example). If you have multiple assets with different gains and losses, speak to an adviser about your options. 5. Savings Rate and Starting Rate of tax For savings interest (which includes returns from an investment bond and interest within a collective or investment account), individuals have up to £1000 they can receive each year under the savings rate (£500 for higher rate taxpayers) and for lower earners they also could utilise an additional £5000pa against savings interest, called the starting band. This is especially relevant for our retired clients that are utilising different allowances from different portfolios and may be even more relevant with the changes to capital gains tax. 6. Tax Efficient Life Cover for Business Owners and Employees If you are a business owner, you need to be reviewing your life cover. Life cover can now be paid for by the business as a tax efficient business expense and can pay out to your family free of inheritance tax by using a Relevant Life Plan. If you haven’t looked at this fantastic product and particularly if your company year-end is approaching, now is the time to review this as making an annual payment for this policy will have an impact on this year’s corporation tax. Business owners should also be considering share-purchase arrangements for shareholders and key person cover for their main employees to ensure the business continues in all circumstances. Also group benefits which sets you aside from competing companies whilst the recruitment world is so tough. You need to take out any new protection policies whilst you are healthy enough to get cover. 7. Venture Capital Trusts (VCTs) Although higher risk than normal investments, VCTs can potentially offer a good alternative for higher earners particularly where they have used their Annual Allowance for their pensions. A VCT gives a 30% income tax reducer against income tax due to be paid in that tax year. It is not a relief; you must have the income tax due to offset against. The investment must remain in the fund for 5 years and potentially gives tax free dividends during that time. The gains are free of CGT as well. There are a range of VCTs available with different strategies, risk and track records and there are generally two windows available to invest in a VCT, January to March and then September. This can be alongside a pension strategy for those with a higher risk appetite. Remember if you don’t use your allowances, you may lose them, so it is vital that you have your savings, pensions and investments arranged in a way to maximise your available allowances in line with your personal circumstances.
An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested. HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen. Tax concessions are not guaranteed and may change in the future. Tax free means the investor pays no tax. For specialist tax advice, please refer to an accountant or tax specialist. To set up a Will, you will need to speak to a solicitor or Will writing specialist. Will writing is not regulated by the Financial Conduct Authority. This was approved by the Openwork Partnership on 06/02/2023 For further information on any of the above, please speak to your adviser, contact KBA to book a meeting with one of our team by calling 01942 889883 or email [email protected] Written on behalf of the KBA team by: Sarah Hogan, Chartered Financial Planner Company Director www.kbafinancial.com