FINANCE

TAX EFFICIENT FINANCIAL PLANNING

Another tax year is coming to an end and it’s important to ensure investors have made use of their tax efficient savings vehicles, but what if you have already maxed out on your pension and ISA allowances? Well, some sophisticated investors put their hard -earned cash to work in the form of Venture Capital Trust Investment. These products invest into young growing companies. To encourage investment in this crucial and higher risk area, the government offers investors generous tax benefits, including 30% income tax relief when you invest, tax-free dividends and tax-free capital growth. The Dragons Den turned down the young company Gousto when they pitched for investment in 2013, however a VCT provided them with the capital they needed to grow and are now an industry ‘unicorn’ with a valuation of £1 Billion. The tax tail should never wag the investment dog- the downside of this investment is the higher risk factors surrounding young companies mean that together with the success stories there are also companies that fail so it is in the hands of the VCT managers to invest in a good mix. You can also spread your investments across several types of VCTs from generalist, specialist and AIM in the same tax year to diversify your investment further. VCTs can be an invaluable financial planning tool, both leading up to and in retirement. After ISA and pension allowances have been used, VCTs could be the next port of call for tax-efficient investing. Investment needs to be held for 5 years to qualify for tax relief. Remember tax rules can change and benefits depend on individual circumstances. VCTs are not suitable for everyone - If you would like to find more about tax efficient investing contact us at 01656 772222.

Pippa Vaughan-Avery is an Independent Financial Adviser at Abacus Assurance Financial Services.

PIPPA VAUGHAN-AVERY Financial Adviser Abacus Assurance Financial Services Ltd Porthcawl 01656 772222

HAPPY AGENT, HAPPY CLIENT, HAPPY ADVISER

We recently had the latest example of helping save a difficult situation, from which everyone was a winner. Mr and Mrs S. had the need to move from a standard house to a bungalow in Bridgend but having looked at their financial situation, they sadly had to phone the Estate Agent to say that they had miscalculated their figures and were about £20,000 short – they were selling their house for £220,000 but the bungalow was priced at £240,000. In addition to this, there would be the cost of carrying out at least some modification to the property. With Mr S. having suffered a recent stroke, making his mobility an issue, the thought of a bungalow on one level seemed the perfect answer – no more the need to climb stairs. When they called their daughter to give them the bad news, she suggested that they should perhaps give us a call, as the daughter remembered reading in one my previous articles that we may be able to assist with such an issue. Indeed, she was right! I arranged to visit the Clients at their home to go through the options available to retired people like them whose needs can be very different to the average Client, whose needs may be vastly simpler. The result of the visit was that we were able to inform them that an arrangement could be made not only to move to the bungalow but also would permit them the additional cash they needed to adapt the new home. I called the Estate Agent to give them the good news that the sale of the property could proceed and that I would be handling the matter of the finance on the Clients’ behalf and would keep the Agent informed as we went along towards completion of the transaction – we even arranged with the Solicitor who could represent them throughout. At the time of writing, the Clients have just moved into their new property and the Agent was very pleased, the Clients are now settled and happy for life and as Adviser we are simply delighted to have yet again, come up with the answer. Whatever your needs, please call on 01656 782545 or 07768 418308.

PAUL FIELDING Dragon Financial 01656 782545 / 07768 418308

Independent Mortgage and Protection Advisers

We are the Specialists to call...

Need a new mortgage from a whole of market Adviser? Over the Age of 55 and need Later Life Lending or Equity Release? • Refused a mortgage due to Previous Credit Problems? • Trying to get on the ladder as First Time Buyers? • Life Assurance and Family Protection need reviewing? • Income protection a problem – not available from work?

Funeral planning? - pre-paid plans to suit everyone We also work with trusted, qualified financial partners in other areas of financial needs

CALL US ON: 01656 782545 MOB: 07768 418308 / 07960 613111

EMAIL: camfin@btopenworld.com

APPOINTMENTS AT A TIME TO SUIT YOU, EVEN AT WEEKENDS – HOME VISITS