Welcome
A particular welcome to all of you for whom this is your first newsletter under Perspective branding.
Neil Donnelly Financial Planner, Perspective (Chelmsford)
The Budget on 30th October 2024 raised taxes by £40 billion, a large amount by any standard. We look at the implications particularly around changes to Inheritance Tax and Capital Gains Tax, which may require some replanning of existing arrangements.
We are here to help navigate your way through these changes. For more advice on your personal circumstances, please do get in touch with your Financial Planner.
We are proud that relationships with you, our clients, extend on average to more than 26 years.
It gives us great satisfaction to have helped guide many people through significant stages in their lives. Our clients range from being in their twenties to over 100 years old, and we often work across four generations of a family, looking holistically at their financial planning arrangements.
This time of year, often means spending more time enjoying the company of both family and friends. As we look to the future, we wish all our clients and their loved ones a Merry Christmas and a Happy New Year.
Kind Regards Perspective (Chelmsford)
Chelmsford Office
Tel: 01245 847 900
www.pfgl.co.uk/chelmsford
All calls to and from our landlines and mobiles are recorded to meet regulatory requirements.
Expert, specialist financial planning and wealth management advice for individuals, corporates and trustees.
Whilst enjoying the scale of a national group, we deliver a very personal service from our local offices, most of which have been established for over 30 years.
Over 650 staff including over 165 financial planners, a quarter of whom have been awarded Chartered status, the CII’s premier designation.
Our in-house Perspective Academy grows our next generation of financial planners who share our client-centric ethos.
‘Whole of market’ approach meaning our advice is not limited to certain providers.
High proportion of new clients coming from recommendations by existing clients and fellow professionals.
Points to Consider following 30th October 2024 Budget
The budget saw significant changes which may in time impact various aspects of your financial plan.
Navigating your financial Life Stages from 18 to 80+
Each life stage brings new priorities and opportunities, and your financial planning needs changes as you travel along the journey.
The articles in this newsletter are for information only and must not be considered as financial advice. We always recommend that you seek financial advice before making any financial decisions.
10 years YoungDeveloping Future Talent in Financial Planning
The Academy, which celebrates its 10th anniversary this year, develops our next generation of financial planners and paraplanners who will share our client-centric approach.
Helping our communities
The latest charitable and community Involvement from team Perspective.
Points to Consider following 30th October 2024 Budget
The Budget saw significant changes which may, in time, require some replanning of existing arrangements.
We are here, as always, to help navigate your way through any impact on your personal circumstances and your Financial Planner will discuss these, as needed, at your next annual review.
Image: Lauren Hurley / DESNZ/
Capital Gains Tax (CGT)
The CGT landscape has shifted significantly. From October 30, 2024, the lower rate for nonresidential properties rose from 10% to 18%, and the higher rate climbed from 20% to 24%.
Combined with the dramatic reduction in the annual CGT allowance—from £12,300 in April 2023 to just £3,000 this year—the combined impact is clear.
Consequently, projections suggest 570,000 people will pay CGT in 2024/25, with 260,000 liable for the first time.
Points to consider:
• Using tax-efficient vehicles such as ISAs and pensions can protect against future capital gains tax
• Over time, the benefits of ISAs, for example, can be considerable, with the average ISA for over-65s now exceeding £60,000 in value
Pension Assets
There was a significant announcement regarding a change in the tax treatment of pension assets upon death. From April 2027, defined contribution pension pots will be included as part of your estate and, therefore, potentially liable to IHT. In the 2027/28 tax year, the Office of Budget Responsibility estimates that 38,500 estates will pay, on average, £34,000 in additional IHT due to holding pension assets.
Inheritance Tax (IHT)
The IHT threshold has remained static since 2009, with the limit frozen at £325,000, and this was recently extended to 2030. Adjusted for inflation, the threshold would today be over £500,000
While the additional £175,000 residence allowance offers some relief for direct descendants, it doesn’t help everyone. With the average UK home now valued at £366,000, many estates are at risk of exceeding the threshold when combined with investments, pensions, and other assets.
Points to consider:
• This change will significantly change how everyday living costs are funded in retirement
• The challenge will be finding a balance between pension and non-pension income while maintaining sufficient funding for the rest of your life
Points to consider:
• It’s worth revisiting estate and inheritance tax plans, particularly to make the most of available gift allowances
• The government estimates an additional 10,500 estates will pay IHT by 2030, partly due to changes in the treatment of pension assets
Overview of Rate Changes
Capital Gains Tax (CGT):
• Non-residential CGT lower rate increased from 10% to 18%, and higher rate from 20% to 24% from 30 October 2024
• Residential CGT rates to remain unchanged at 18% and 24%
• CGT rate payable under Business Asset Disposal Relief (BADR) to increase from 10% to 14% from 6 April 2025, and to 18% from 6 April 2026
• The Government may also decide to restrict the transfer of Tax Relief between spouses/partners though full details are yet to be confirmed. Assets in excess of £1 million will get 50% relief and be taxed at an effective rate of 20%
• Business relief on AIM shares will be reduced from 100% to 50% and be taxed at an effective rate of 20%. There is no upper limit to the amount an individual can invest into AIM-listed shares while qualifying for 50% relief
Housing :
• Stamp duty land tax surcharge for second homes to increase from 3% to 5% from 31 October 2024
Projections suggest 570,000 people will pay CGT in 2024/25, with 260,000 liable for the first time.
Inheritance Tax (IHT):
• IHT thresholds to remain unchanged until 2030
• Inherited pensions to be brought into scope of IHT from April 2027
• Business relief and agricultural relief to be reformed from April 2026. For deaths prior to 6 April 2026 there will be no change. After that date, the first £1 million of combined business and agricultural assets will continue to get 100% relief
Navigating your financial Life Stages from 18 to 80+
We regard it as a privilege to have advised many clients through multiple life stages. It is a special and close relationship which we greatly value. Our average client relationship spans over 26 years and we are often regarded as, and proud to be, a family’s main professional ‘trusted adviser’.
Some clients initially contact us for help with a specific need – advice on a mortgage, protection, investments or pensions – and this has subsequently evolved into providing on-going, holistic advice over many years to them and often several generations of their family.
Having a financial planner who understands your family history over many years ensures that their advice and the value it creates for you will evolve as your family circumstances do.
This is a bit like having a ‘trusted Family GP.’ Whilst any competent doctor is likely to be able to treat a one-off illness successfully, a ‘trusted Family GP’ who is familiar with you and your family’s circumstances will be able to notice other relevant factors.
This continuity is beneficial both in healthcare and financial planning and nothing replaces the value of face-to-face conversations with people familiar with your circumstances when making critical decisions.
Each life stage brings new priorities and opportunities, and your financial planning needs change as you travel along the journey. The decisions you make now can secure not only your financial future but also that of your children, grandchildren, and beyond.
We are here to help you get the most out of it. So, taking a step back, what are we likely to be discussing with you at the various stages of your life?
Our ‘Five Stages of Financial Planning’ provides a useful framework and reminder of the issues that your financial planner is likely to focus on with you as you progress from being 18 to 80+.
Aged 18-35 Starting Out
In the early days, you will likely be focused on laying the foundations—building savings, investment planning, managing debt, and setting up a pension. At this stage, we will consider with you:
• Are there better ways to grow your savings?
• Is your current plan still the most effective way to reduce debt?
• Could early pension contributions make a more significant difference than you expected?
Minor adjustments made early can have a big impact further down the road, helping to ensure your plan is always working as hard as possible.
Aged 35-50
Mid-Career: Growing and Protecting Wealth
As your career progresses, your focus naturally shifts toward growing wealth and protecting your family. You may already have a solid financial plan in place, but we now work with you on issues like building and protecting what you’ve worked hard for:
• Are your investments aligned with your current goals and tax strategy?
• Is now the right time to revisit how your financial decisions affect your family, like saving for education or funding large purchases?
• Are you fully utilising strategies to safeguard your wealth against unexpected events?
Taking a fresh look at your financial situation, often from a more family-oriented perspective, can help uncover new ways to balance wealth building with protection as your circumstances change.
Aged 50-60
Pre-Retirement: Securing Your Future
As retirement approaches, ensuring your financial security becomes the main priority. We’ve been building up to this change in life with you for some years, and now we will address questions such as:
• When can I retire without exhausting my finances?
• Is it time to move from growth-focused investments to enhanced income?
• How robust is the plan, and can it adapt to unexpected changes such as longer life expectancy?
We work with you to refine your approach, making sure you are ready for the next chapter.
Case Study:
Jim Knights, director of our Marlborough office, assisted a client who was concerned about delaying retirement due to financial commitments.
After several meetings, Jim developed a tailored financial plan with the client that:
• Raised funds tax-efficiently to reduce their financial burdens.
• Increased their guaranteed income, reducing reliance on shift work.
• Utilised available tax allowances to offset additional income tax.
• Reduced pension costs by over 1% annually while realigning investments.
Ultimately, Jim was able to reassure the client that they were on track to achieve their desired retirement lifestyle, with the option to retire earlier than expected.
Aged 60-75
Retirement: Managing Your Lifestyle and Income
There are now new issues to address. You have finally reached the point where you’re ready to enjoy the retirement you’ve worked hard for. Financial planning is often even more critical at this stage as regular employment income options diminish and you switch to spending your capital.
Consequently, there is a lot to consider:
• Could you withdraw more efficiently to reduce taxes or extend your income?
• Are you set up to protect your assets for the long term?
• How can you enjoy retirement while ensuring your savings last?
Our goal at this stage is to help you maintain the lifestyle you have earned, making sure your financial plan adapts to your changing needs and you can spend with confidence.
Post 75
Legacy Planning: Securing the Future for Your Loved Ones
Many people leave legacy planning too late in life, but starting early can give you peace of mind and ensure your family is looked after. You’ve worked hard to build a legacy—and we will work with you to ensure you make full use of the available strategies to pass it on efficiently.
• Is your estate plan up-to-date and aligned with your wishes?
• Are you using all available options to reduce the tax burden on your family?
• Regular and one-off gifting is often overlooked, but it’s a simple way to reduce your estate.
With broader planning, you can ensure your legacy is passed on in a way that reflects your values and intentions, providing for your loved ones in the most effective way possible.
Financial planning advice can benefit you for life. Our financial planners often work with their clients for many decades, offering expert advice at every stage of their life. Most clients come to us through recommendations from friends, family members or fellow professionals.
Do you know someone who would benefit from our expertise?
We offer free, no-obligation initial discussions with new potential clients. These can be held face-toface at our offices, or by telephone or Teams.
DO tell the Children!
How can you help the next generation manage and grow their finances responsibly? When you do so, you are passing on another valuable life lesson and skill to them.
By engaging your family in financial discussions, you foster familiarity with your financial affairs and equip them to manage wealth responsibly. This way, they can face their futures with confidence and will know how to access expert support and guidance when required.
7 things you can do:
• Involve younger generations to boost financial literacy in money management and investment.
• Discuss shared objectives regularly to align family goals for education, care and other needs.
• Communicate inheritance plans clearly to prevent conflicts and misunderstandings.
• Use tax-efficient strategies like trusts to enhance tax efficiency across generations.
• Coordinate wealth transfer and estate management to secure long-term stability for your family.
• Protect against risks with joint planning, ensuring everyone is prepared with strategies such as insurance and estate planning.
• Plan well in advance for the future financial needs of older family members, including of course yourself.
10 years YoungDeveloping Future Talent in Financial Planning
You, our clients, are accustomed to our industry leading expertise and trusted advice, and there is no better way to provide this for the future than cultivating talent through our Academy, where we train people to the highest standards.
The Academy, which celebrates its 10th anniversary this year, develops our next generation of financial planners and paraplanners who will share our client-centric and ethical approach. This is firmly embedded within our business and supports our employees’ growth and career aspirations.
Over the last few months, we have:
• Exhibited at Newcastle, Northumbria & Lancaster University Graduate Careers Fairs
• Presented to 2nd and 3rd year students about careers within our Group
• Attended events with final year Accounting & Finance students at Newcastle
• Attended speed-mentoring sessions at Newcastle University Business School
We are proud of how well several of our current trainees have proactively contributed to these events and have already become great ambassadors for us.
If any of your family or friends’ children are considering their career options as a school leaver, or new or recent graduate, please encourage them to find out more at: www.pfgl.co.uk/careers/perspective-academy
Harriet Griffin joins as Chief Operating Officer
We are pleased to welcome Harriet Griffin who joined us in November as Chief Operating Officer, a new role in the Group. She also joins the Main Board.
Harriet said: “I feel truly honoured to be joining Perspective at such an exciting time and very much look forward to contributing to the Group’s next chapter. I admire Perspective’s clear focus of putting the client at the centre of every decision, their solid foundations,
and highly proactive approach to being the best at everything they do.
“I relish the opportunity to help bring to life how technology can assist both clients and staff achieve the best possible experience and outcomes.”
Harriet is a graduate of the University of Bath, a Chartered Member of the CISI and holds an MBA from Cranfield University.
Long service in Newcastle
Congratulations to two long standing members of staff based in our Newcastle upon Tyne office, Mike Gordon, Technical Director and Chartered Financial Planner on his 25 year anniversary, and Sarah Hall, Administrator, on her 10 year anniversary!
Jenny Jones celebrates 10 years’ service
We would like to congratulate Jenny Jones, a Financial Planner in our Cambridge office, on achieving 10 years of service. Within the last 10 years Jenny has progressed a long way from her first employment in financial services - congratulations!
Helping our communities
Our offices all have a deep-rooted commitment to caring for their local communities. This dedication encompasses a range of charitable initiatives designed to give back and make a meaningful difference in the lives of those we serve.
Perspective (South West) Ltd sponsors Wiltshire & Bath Air Ambulance’s Carols in the Chapel Event
Our Marlborough office is sponsoring Wiltshire & Bath Air Ambulance’s Carols in the Chapel event taking place in Marlborough College’s stunning Chapel on 12th December 2024. This event is sold out.
Jim Knights, Director of Perspective’s Marlborough office said: “The Wiltshire & Bath Air Ambulance is a lifeline for our community, and we are sincerely committed to ensuring its continuing existence. We hope that by sponsoring this event, we will help promote awareness and urge others to join us in supporting their great work.”
Perspective (West) Ltd leads session on Vulnerability
Olivia Lowe, Financial Planner based in our Oswestry office, spoke at The Insurance Institute of Shropshire & Mid-Wales & Personal Finance Society’s conference in October leading a session on Vulnerability.
Olivia is current President of The Insurance Institute of Shropshire & Mid-Wales and will host the President’s Dinner in February 2025.
Perspective
(South East) Ltd volunteer for the
Royal British Legion
The team at our Maidstone office spent two afternoons volunteering at Royal British Legion Industries (RBLI)’s site in Rochester, Kent helping pack merchandise for their Remembrance range.
Natasha Wadhams, Events Fundraising Manager at RBLI said: “A huge thank you to the two fantastic teams from Perspective who each spent a busy afternoon volunteering.”
Perspective (Chelmsford)
