Cotswolds Lifestyle Jan - Feb 2020

Your local wealth
management experts
Get your finances in shape for 2020
Shaping up your finances can have an everlasting impact
on your future and unfortunately, the phrase ‘doing too
little too late’ can be true. There are ways you can save
money, improve investment returns and manage the
amount of tax you pay, which will help you in years to
come. Here are our top three New Year’s resolutions to
help you plan for a successful financial 2020 and beyond.
1. Invest your surplus cash
It’s important to consider what you’re doing with any
surplus cash, mainly due to the risk inflation poses.
Say you have a £50,000 surplus and you receive interest of
1%; and assuming inflation is 2.5% in real terms, your pot
is eroding by 1.5% per annum. To put this into perspective,
leaving your £50,000 surplus untouched in the bank for
10 years means it would be worth approximately £42,987.
2. Use your tax allowances
At the beginning of 2020, make sure you are using this
year’s tax allowances. Although they are subject to change
in the 2020/21 tax year, key allowances you should bear
in mind for the remainder of the 2019/20 tax year are:
• ISA allowance (£20,000)
• Annual pension allowance (£40,000 for most people)
• Capital Gains Tax (CGT) allowance of £12,000
• Tax-free dividend allowance of £2,000
• The Lifetime Allowance (LTA) for pensions of £1,055,000
The tax treatments set out in this communication are
based on our current understanding of UK legislation.
3. Think about the financial future you want
Think about the answers to the following questions:
• What is your take home pay after taxes?
• How much do you tend to spend per month?
• If you are thinking about leaving funds to your
beneficiaries, how much capital do you want
access to in your lifetime, how much may you
need access to and how might you be impacted
by inheritance tax?
It is worth considering if any of these are likely to change
in the future or for one-off events. In addition, if you
have a partner, how would your answers change if either
of you were to pass away?
This will give you invaluable insight into whether you are
on track for the future you want and help you plan for
tax efficiency. Don’t be afraid to ask for help, a financial
adviser can create a personalised plan for you to ensure
you remain on track and do not miss out on any
valuable opportunities.
Investment involves risk. The value of investments and
the income from them can go down as well as up and
you may not get back the amount originally invested.
The tax treatment of all investments depends upon
individual circumstances and the levels and basis of
taxation may change in the future. Investors should
discuss their financial arrangements with their own
tax adviser before investing.
At the Canaccord Genuity Wealth Management Midlands office, we have the
skills and expertise to offer clients a complete wealth management solution
locally under one roof, with the resources of a substantial global company.
This includes areas like pension planning, inheritance tax planning and
long-term care provision along with investment management.
Jonathan Hayton
Chartered Financial Planner
Canaccord Genuity Wealth Management, Slip House, Princes Drive,
Worcester WR1 2AB | worcester@canaccord.com | +44 1905 953623