Author: Rob Bowers

On Wednesday 15 March 2023, chancellor Jeremy Hunt presented his spring Budget.

Focusing on the government’s aims to halve inflation, reduce public debt, and boost economic growth, Hunt delivered his first official Budget alongside the latest economic and fiscal outlook from the Office for Budget Responsibility (OBR).

“Despite continuing global instability, the OBR report today that inflation in the UK will fall from 10.7% in the final quarter of last year to 2.9% by the end of 2023.”

Hunt opened his speech by admitting that, in the autumn, the government “took difficult decisions to deliver stability and sound money”.

Today, he promised “a budget for growth”.

“Not just growth from emerging out of a downturn. But long-term, sustainable, healthy growth that pays for our NHS and schools, finds good jobs for young people, provides a safety net for older people […] all whilst making our country one of the most prosperous in the world.”

Here are the key points of the spring Budget, and what they might mean for you.

Encouraging early retirees back into work

Jeremy Hunt’s primary focus with his spring Budget is to encourage Britain back to work. Around 7 million working aged adults are classed as “economically inactive”. Of these, more than a million people have taken early retirement.

To address this issue and to stop pension limits “from acting as a barrier to remaining in work”, the chancellor announced increases to pension allowances and abolished the Lifetime Allowance.

Pensions Lifetime Allowance abolished

Following conversations with senior doctors in the NHS and other experienced professionals, the pensions Lifetime Allowance (LTA) has been abolished.

The LTA is the maximum amount of tax-efficient pension savings you can accrue in your lifetime and includes the total value of your pensions, including your contributions, your employer’s contributions from your workplace pension, tax relief, and investment returns.

From April 2023, there will be no limit on the amount of total tax-efficient pension savings you can accrue.

Pensions Annual Allowance increased

The chancellor announced that the Annual Allowance will increase from £40,000 to £60,000 from 6 April 2023.

The Annual Allowance is the amount that you can save into your pension each tax year (6 April to 5 April) while still being able to benefit from tax relief. In the 2023/24 tax year, this will now be £60,000.

Money Purchase Annual Allowance to increase

Another useful incentive to encourage experienced people to return to work, the chancellor announced an increase to the Money Purchase Annual Allowance (MPAA).

The MPAA limits the amount of money you can save tax-efficiently into your pension after you have started drawing flexibly from your defined contribution pension savings.

The MPAA will increase from £4,000 to £10,000 from April 2023.

Tapered Annual Allowance to increase

From April 2023, the minimum Tapered Annual Allowance will increase from £4,000 to £10,000. The adjusted income threshold for the Tapered Annual Allowance will also be increased from £240,000 to £260,000 from 6 April 2023.

These announcements have increased the amount people can put aside for their pensions

In abolishing the LTA and increasing the Annual Allowance, MPAA, and Tapered Annual Allowance the government has increased the amount people can put aside for their pensions each year and save over their lifetime, all while minimising tax. The hope is that this will also dissuade people from retiring early.

Savers and investors see key subscription limits frozen

The annual subscription limit for adult ISAs will remain at £20,000.

Junior Individual Savings Accounts (JISA) and Child Trust Fund accounts will also remain static at £9,000.

No changes to planned Corporation Tax rises, but a new incentive to invest

From April 2023, Corporation Tax will increase from 19% to 25%. In acknowledgement of this move and to limit the impact of the increase, Hunt will allow businesses to offset 100% of investments in infrastructure and factory and machinery assets against profits for tax purposes.

The full force of this tax rise will hit those businesses with profits exceeding £250,000. Meanwhile, companies with profits of between £50,000 and £250,000 will get marginal relief.

For those with profits of less than £50,000 there is no change. They will continue to pay Corporation Tax at 19%.

Plan for business growth

As part of the Treasury’s plan to stimulate the UK’s sluggish economic growth and to spur regional activity outside London, up to 12 successful investment zones will receive funding of £80 million each over five years. This money can be directed towards tax relief for businesses, training, and infrastructure.

Eight places in England have been shortlisted to host investment zones. These are:

• East Midlands
• Greater Manchester
• Liverpool
• North East
• South Yorkshire
• Tees Valley
• West Midlands
• West Yorkshire

A further four zones will sit across Scotland, Wales and Northern Ireland.

Energy price guarantee extended

The energy price guarantee (EPG) that limits the typical annual bill to £2,500 has been extended.

The EPG had been due to change in April, with the ceiling increasing to £3,000 a year, but now the present level will remain for a further three months, until the end of June 2023. Hunt said: “This temporary change will bridge the gap and ease the pressure on families, while also helping to lower inflation too.”

The chancellor added, “This measure will save the average family a further £160 on top of the energy support measures already announced.”

Fuel duty

As petrol and diesel prices continue to be volatile, the chancellor announced continuing support for households and businesses by extending the temporary 5p fuel duty for a further 12 months.

“That saves the average driver £100 next year and around £200 since the 5p cut was introduced,” Jeremy Hunt said.

This one-year extension will cost £6 billion.

Draught Relief

In good news for beer drinkers, Hunt announced that he would “significantly increase the generosity of Draught Relief”. From 1 August, the duty on draught products in pubs will be up to 11p lower than the duty in supermarkets.

As the chancellor said, “British ale may be warm, but the duty on a pint is frozen.”

Get in touch

If you have any questions about how the spring Budget will affect you and your finances, please get in touch.

All information is from the spring Budget document and the government’s spring Budget bulletin.

The content of this spring Budget summary is intended for general information purposes only. The content should not be relied upon in its entirety and shall not be deemed to be or constitute advice.

While we believe this interpretation to be correct, it cannot be guaranteed and we cannot accept any responsibility for any action taken or refrained from being taken as a result of the information contained within this summary. Please obtain professional advice before entering into or altering any new arrangement.

Despite the importance of having a will, you may be surprised to hear that many in the UK are yet to write one.

Indeed, according to a recent survey from MoneyAge, an alarming 51% of UK adults don’t have a will, and, of those who do have one, 43% haven’t updated their wishes since it was first written.

It’s of the utmost importance that you have an up-to-date will, as it remains one of the best ways to ensure that your estate is distributed according to your wishes when you die. Doing so can reduce your Inheritance Tax liability, diminish the chance of disputes, and even alleviate stress on your family.

Even if you already have a will, you should update it regularly to ensure that it remains appropriate for your current needs and that your assets are passed on to the right people.

So, read on to discover six important reasons it’s essential that you write, and regularly update, your will.

1. You can identify guardians for your children

While your will is a means of allocating your estate to your next of kin, it also allows you to express direct wishes about what will happen to your children after you die.

If your dependents are below the age of 18, you can use your will to appoint appropriate legal guardians for them.

The ramifications for not doing so can be serious, as a family court would likely need to decide what happens to them, and they could assign a guardian you usually wouldn’t have chosen.

2. It could mean less hassle for your family

When you die, your family typically needs to deal with your estate, all while dealing with the grief of your passing. So, writing or reviewing your will could make it easier for your family to make any necessary arrangements.

Without a will, this entire process can often be more stressful and time-consuming, and it could take longer for your assets to pass on to your loved ones.

3. It ensures nothing is left behind after you die

If you don’t have a will when you die, your family may struggle to deal with all the paperwork relating to your finances. When dealing with your estate, they could easily miss a previous pension, any protection you had, and even old savings accounts.

With an up-to-date will, you can clearly identify all your assets and allocate these to your chosen beneficiaries. This will ensure that your family doesn’t miss out on any wealth you would’ve otherwise wanted them to have simply because they didn’t know it existed.

Also, as you progress through life, your wealth will likely change. If you don’t regularly update your will, there could be a chance that some of your assets will be missed when your estate is divided.

4. It can help avoid disputes after you pass

When you pass away, it’s common for your family to go through a period of heightened stress and grief. So, dividing up an estate can sometimes be the perfect storm of stress and emotions, leading to disputes and arguments amongst your beneficiaries.

In fact, information from IBB Law shows that 75% of people are likely to experience a will or inheritance dispute case at some point in their life.

If your next of kin start to argue about your estate after you die, it can permanently damage their relationships and cause schisms in the family. It could also potentially cost thousands in legal fees.

If you have a well-written and up-to-date will, these disputes can potentially be avoided, and the process of dividing up your estate can be as painless as possible.

If your will isn’t regularly updated, disputes could potentially become more common. As an example, if you remarry and forget to update your will, your estate could potentially pass to the wrong people, resulting in a potential challenge and arguments and disputes after you die.

5. You could potentially mitigate Inheritance Tax

The total value of your estate will dictate the amount of Inheritance Tax (IHT) your next of kin will pay after you die.

As of the 2022/23 tax year, the IHT threshold rests at £325,000. You also have an additional £175,000 nil-rate band if you leave your home to a child or grandchild.

Anything left above this value is typically subject to the standard IHT rate of 40%.

Fortunately, a well-written will can often reduce your IHT liability. For instance, if you clearly specify you want to leave your home to a direct lineal descendent, such as a child or grandchild, you can make full use of the additional residence nil-rate band. This could substantially reduce the IHT liability on your estate.

With a will, you can allocate certain assets to your beneficiaries to ensure your estate plan is as tax-efficient as possible.

6. It gives you peace of mind

Above all, having an up-to-date will in place can give you the peace of mind that your affairs will be dealt with in a way that aligns with your wishes. The thought that your loved ones’ future is secure can take a weight off your shoulders and allow you to enjoy the present.

If you die without a will, the law will rule on issues from the guardianship of your minor children to the distribution of your estate. By putting a current will in place now and updating it after significant life events, you can take back control and rest assured that the right people will receive your wealth after you die.

Get in touch

We can discuss your will and your wishes and help to ensure you have peace of mind that your beneficiaries will be well looked-after in the unfortunate event of your death.

To find out more, please email hello@bluewealth.co.uk or call us on 0117 332 0230.

Please note

The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

Blue Wealth Ltd is an appointed representative of Best Practice IFA Group Ltd, which is authorised and regulated by the Financial Conduct Authority.

Each month, we share some of the highlights of what’s been happening in and around Blue Wealth.

This month, Adrian Thorley is celebrating achieving his Chartered status and our charity partner, BillyChip has been saying lovely things about us in their social feeds.

It’s official, Adrian is now a Chartered financial planner

When we caught up with Adrian late last year, he had submitted his coursework for the AF8 qualification and was nearing the end of his journey to become a Chartered financial planner.

We grabbed a few minutes with Adrian to find out what happened next…

What did the final step(s) of reaching Chartered status involve?

The last piece of the jigsaw for me was completion of the AF8 Retirement Income Planning coursework module. This is a three-part process, based around a fictional client scenario.

I had submitted all three parts in order, with success in parts one and three. So, it was frustrating to have initially fallen short in respect of part two, and to need to resubmit that for reassessment.

I found the feedback from the CII open to interpretation, so it was a case of going back to the drawing board and hoping for the best!

How did it feel to find out that you’d made the grade?

A huge sense of relief! You’re never sure exactly when you’ll hear back, and results are communicated by email which, on the one hand, I was keen to receive, until it actually arrived!

It’s then a case of diving in and hoping for the best. Thankfully, it was second time lucky.

How many qualifications do you now have under your belt?

Not including a qualification that I took and passed when working in Guernsey, I have four vocational qualifications – and it has taken 18 exams to get them.

What are you looking forward to focusing on now that you’ve achieved this major professional milestone?

Focus is the word. Now that the exams are out of the way, I can concentrate on providing ongoing support for my existing clients, while acquiring and providing similar help for new ones.

It will be great to devote 100% of my time to doing that, without the distraction of study.

For those who aren’t clients, what areas do you specialise in and how can you help them realise their financial goals?

I’m the oldest of the three Financial Planners at Blue Wealth. I think people identify more readily with those of a similar age and experience, simply because you have more in common.

I specialise in dealing with those who are nearing retirement or have already retired.

Once I’ve taken the time to really understand where they are, what their concerns are, and what they want to achieve, we can work together to create a plan of action, to get them on track, and to provide ongoing support and advice.

I also have a background in life assurance and income protection, so enjoy the very different challenges that arranging cover for individuals and businesses provides.

Get in touch with Adrian

If you or someone you know could benefit from working with Adrian, he’d love to hear from you. Email adrian.thorley@bluewealth.co.uk or call 0117 332 0230.

Blue Wealth and BillyChip continue to make a great partnership

As many of you will know, BillyChip has been our charity partner since August 2022.

For every initial meeting we have that comes from a client recommendation, we donate £50 to BillyChip. Whether the meeting takes place in person or remotely, we donate – even if they don’t end up becoming a client.

In February, thanks to your generosity in recommending us to your family and friends, we made more donations. And BillyChip reciprocated by giving us a shout out on Twitter and LinkedIn.

The message they posted on LinkedIn, on 1 March, said:

“We want to say a big thank you to the team at Blue Wealth who will continue to support us in 2023💙

“Throughout 2022, they made a £50 donation to BillyChip for every initial meeting that comes from a client recommendation and we can gladly say they will be continuing this into 2023.

“Each donation makes a big difference to how we operate and means we can continue to do the work that we love and expand the BillyChip into new areas to help support our community💙

“You’re fabulous and don’t you ever forget it”

Meanwhile, on Twitter, they said: “Thank you Blue Wealth for choosing us as your 2023 charity partner💙 You supported us in 2022 and we can’t wait for this partnership to continue🌟”

Do you have multiple pensions? It could make it difficult to manage your pension savings during your working life and when you retire. In some cases, consolidating them could be beneficial.

This guide explains what you need to know about transferring your pension savings, so you have fewer pots to manage. It could help you feel more in control of your retirement and, in some cases, reduce the amount you’re paying in fees.

However, there are reasons why consolidating your pension may not be right for you:

• You have a defined benefit pension
• Your pension has additional benefits
• You may need to pay an exit fee
• You could benefit from using “small pot” privileges.

Download “Your guide to pension consolidation: The pros and cons you need to know” now to read more about pension consolidation and understand if it could be the right decision for you.

If you have any questions about your pension or retirement, please get in touch.

Your finances and your physical health may appear to be two very different topics, but if you ever want to improve your skills in either area, you will have to heed much of the same advice.

For example, a financial planner and a personal trainer will both take a similar approach. In order to tailor a plan to your needs, they will both need to know your current situation, as well as what you want to achieve.

According to a study by Aviva, more than twice as many people rate financial health as the toughest element of their wellbeing to manage compared to their physical health.

The research also revealed that your health can affect your finances, so if you are struggling with your financial or physical health, here are four key tips to keep in mind.

1. Plan your approach

Making the decision to improve your health is the most important step on your journey. Once you’ve set your mind to the task, the best thing you can do to propel yourself towards your goal is to create a comprehensive plan of what you need to do to succeed.

A holistic attitude is important when plotting out what you intend to do. If you only tackle one problem area, you’re unlikely to achieve the desired result.

For example, to lose weight, you must work out and eat healthily, otherwise you will undo any progress you may have made.

Similarly, spending more money than you can afford to or ignoring issues such as poorly managed debt can destroy your hard work.

A financial planner can help you to identify any areas that might cause problems, as well as offering solutions to ensure that you aren’t hindered by any mistakes.

It is also important to prepare yourself for unexpected events.

With fitness, an injury may mean that you aren’t able to train for an upcoming marathon. Similarly, with your financial health, an unavoidable expense may arise that requires you to draw money from your savings.

Having safeguards in place will allow you to deal with these potential catastrophes with minimal setbacks.

Having a clear course of action during an emergency also lessens any worries you may have about worst-case scenarios.

The Aviva study concluded that a person’s physical and mental health predicts 23% of their financial health, so prioritising your wellbeing is crucial if you want to improve your financial health.

2. Stick to your plan

The hardest part of committing to any long-term goal is taking the first step. But with your plan in place, you can begin to build up your skill slowly by creating new habits.

Making small daily decisions, such as choosing to go on a run every morning or spending 15 minutes a day looking into your finances, won’t drastically change your routine. Over time, however, these small sprints of working towards your goal will snowball into large rewards.

Our director, Dan Britton, knows the power of consistency all too well. It took 12 months of intense coaching with a personal trainer to reach the end of the Stafford Ironman event last summer, but a mammoth swim, bike ride, and 13-mile run later, he reached the finish line and all of his hard work paid off!

3. Pay attention to the details

Expanding your knowledge is another important factor in improving your physical and financial health.

Knowing which foods to eat to increase your energy and which exercises will strengthen which muscles are a key part of improving your physique. Likewise, reading up on finances will allow you to have a better understanding of what to do with your money.

If you are struggling to understand these new concepts or apply them to your own life, working with a professional is vital.

A financial planner will advise you on the best course of action to protect and grow your wealth. Similarly, a personal trainer will tailor workouts to your current health standards in order to get you where you want to be.

Once you’ve started your health journey, you also need to keep a record of all the steps you have taken towards your goal.

Tracking your calories and making a note of the workouts you’ve completed is as important as budgeting your finances and being aware of where your money is going so that you aren’t accidentally undermining all the good work you’ve done.

Although it may seem unnecessary, paying attention to every detail will also lessen the chance of you making a mistake. Careful attention can help protect your finances or help you to avoid any sport-related injuries.

4. Focus on the long term

Sometimes, the effort required to improve your health can be hard to muster. That’s why resilience is important when making long-term plans.

When you are feeling stuck or discouraged by the lack of instant gratification, it is important to remind yourself of what led you to start this quest.

Perhaps you want to be fit enough to compete in a sporting event, or you want to save money to gift to your children when they are older.

Whatever your goal may be, determination is key to success.

Discipline is also an important factor. Staying focused on your long-term goals means that you are less likely to fall for a fad diet or a get-rich-quick scheme that may harm your health rather than improve it.

Both personal trainers and financial planners want you to succeed. So, take the time to make sure you choose your adviser well.

Having the right person in your corner while you embark on this difficult but rewarding health journey – whether physical or financial – will give you substantial support.

Working with an expert who can remind you of how far you’ve come and how close you are to reaching your goals could be the factor that finally allows you to live the life you’ve always dreamed of.

Get in touch

If you are interested in improving your financial health or you know someone who would benefit from our expertise, please email hello@bluewealth.co.uk or call us on 0117 332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

Blue Wealth Ltd is an appointed representative of Best Practice IFA Group Ltd, which is authorised and regulated by the Financial Conduct Authority.

Each month, we share some of the highlights of what’s been happening in and around Blue Wealth.

Naomi Davidson is on course to complete her level 4 Diploma in Regulated Financial Planning

Trainee paraplanner Naomi has passed her R03 exam. Another core unit for the Diploma in Regulated Financial Planning, the exam tested her knowledge and understanding of personal taxation.

Having passed R02 in the autumn, it’s only two months since Naomi was last tested on her knowledge – more specifically, her understanding of investment products and the application of the investment advice process. You can read what Naomi said about the last exam in November’s team update.

Having already secured a pass in this latest exam, Naomi now has just three more steps to achieve her goal to complete the diploma by the end of 2023.

Thanks to your generous support, we have made more charity donations to BillyChip

In the last couple of months, we’ve had three more successful referrals from existing clients. And BillyChip has benefited from more Blue Wealth donations.

Thank you so much for your ongoing support and your willingness to tell your family and friends about what we do. Every referral we get helps us to add financial value and provide peace of mind for another individual or family.

Throughout 2023, we will continue to make a £50 donation to BillyChip for every initial meeting we have that comes from a client recommendation.

However the meeting takes place – in person or remotely through video call – we’ll donate. So, if you recommend your friends, family or colleagues to us and we meet with them, we’ll make a £50 donation on your behalf.

As we grow our business through your kind support, knowing that our work is also helping a great cause simply adds to the feel-good factor.

If you know of anyone that would benefit from our help, please pass on our details, or forward the newsletter to them so they can understand a bit more about the work we do.

You’ll probably work hard for many years to build your wealth and achieve your long-term goals.

You may be investing for a comfortable retirement, saving to buy a home, or securing a nest egg to leave to your loved ones. Whatever your goals, having a clear strategy can give you a greater sense of control and confidence. Yet an unexpected event could jeopardise your plans.

So, one important part of your financial plan is to be prepared for unexpected shocks that may hamper your goals – ensuring you have the right cover in place should never be an afterthought.

There are a variety of ways you and your family could benefit from financial protection. Read on to find out three important reasons to take out protection now.

1. Protection can help cover household expenses if you’re too sick to work

What would happen if you were injured or fell ill and were unable to work for an extended period? This could prove incredibly harmful to your finances, especially if you’re the main breadwinner in your household.

Hopefully, you’d have an emergency fund that you could use, but it may not last as long as you need. Plus, although you’re legally allowed to claim up to 28 weeks of Statutory Sick Pay (SSP), in the 2022/23 tax year the maximum SSP sum you could claim is £99.35 a week.

This is unlikely to be enough to maintain your lifestyle, especially if you face additional expenses due to your illness.

Without enough money to live on, you might have to resort to use your savings to help ends meet, which could harm your financial goals.

Income protection could save a lot of stress. A policy will make regular monthly payments, which will usually continue until you’re able to go back to work or retire. This should enable you to relax and focus your energies on regaining your health, instead of worrying about money.

Generally, the policy will pay out a percentage of your usual salary and can be used to help you meet financial commitments if you become ill or involved in an accident.

Equally important, an income protection plan could give you access to rehabilitation services that might help you return to work sooner.

2. Critical illness cover could provide invaluable peace of mind to you and your family

Every year thousands of people in the UK are diagnosed with a critical illness.

If you were diagnosed with an illness or experienced a stroke or heart attack, critical illness cover will pay out a lump sum on the diagnosis of an illness that is named in the policy.

You can choose the level of cover you’d receive to fit your lifestyle and commitments. We can help you understand which policy might be right for you and assist you in avoiding paying expensive premiums on insurance that isn’t what you expected.

The money from critical illness cover could buy you some breathing space and allow you time to come to terms with the news without having to worry about immediate finances.

Alternatively, you could use the money to pay for private medical treatment, or to buy medication not available through the NHS. It might also help you repay your mortgage or other debts, modify your home if necessary, or provide an income.

The cost of the premiums will depend on factors such as your age, medical history, and risk associated with your job.

Ultimately, protecting yourself against the potential for unexpected healthcare expenses could be essential to preserving your financial wellbeing.

Another option to consider is buying private medical insurance (PMI). This would cover costs of private healthcare, including diagnoses, treatment, and everything in between.

While this only covers healthcare costs, having access to private healthcare when faced with potentially devastating news may be useful.

Many employers provide PMI as an employee perk, and often includes family members, so it may be worth checking to see if this is the case for you.

Also, PMI policies can vary enormously between providers, so be careful to read the small print. Alternatively, speak to us and we can help you understand exactly what you are buying before you sign on the dotted line.

3. Life insurance could prevent your family from facing financial ruin

While it may be uncomfortable to consider, have you paused to think about how your family would maintain their current lifestyle if you were to pass away in the near future?

With a life insurance policy in place, your family could receive a payout in the event of your death.

The money could help them to:

• Keep up with mortgage repayments so they won’t have to uproot their lives and move house if you passed away
• Cover living costs such as school fees, travel, and day-to-day expenditure
• Cushion the blow of an Inheritance Tax (IHT) bill.

As well as providing your family with crucial financial support on your death, life insurance can also play an important role in protecting your legacy from IHT.

While there are opportunities within the current IHT rules to minimise or mitigate a tax liability, there may be circumstances where it’s not possible, appropriate, or cost-effective. This is where life insurance can help.

Insuring against a likely IHT liability could allow you to pass on all your accumulated wealth to loved ones.

It’s essential that you write the life insurance policy in trust, to be paid to a named individual. Failing to do this would mean that the payout would be added to your estate and increase the IHT liability – negating any benefit you hoped to achieve.

We can help you understand how financial protection fits into your life goals

When the unexpected strikes it can be devastating. Having the right financial protection in place should mean that money worries are one less thing to deal with.

The cover you need will depend on your own financial situation and circumstances. Whether you want peace of mind in unexpected circumstances or to mitigate tax liabilities, we’ll help to ensure you have the right protection in place.

Get in touch

If you would like to discuss your financial plan, review your protection requirements, or mitigate IHT, please email hello@bluewealth.co.uk or call us on 0117 332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.

Blue Wealth Ltd is an appointed representative of Best Practice IFA Group Ltd, which is authorised and regulated by the Financial Conduct Authority.

The 2022/23 tax year ends on Wednesday 5 April. After this date, many allowances reset, and it could be your last chance to use some of them.

Allowances can help your money go further by reducing your tax liability. Reviewing your finances before the deadline could help you identify some allowances that could be right for you.

This guide explains how seven useful allowances work:

1. Marriage Allowance
2. ISA allowance
3. Dividend Allowance
4. Capital Gains Tax annual exempt amount
5. Pension Annual Allowance
6. Inheritance Tax annual exemption
7. Gifts from your income.

Download your copy of ‘The 2022/23 end of tax year guide: 7 allowances to make use of before 5 April 2023’ to find out more. 

If you have any questions about your financial plan and which allowances make sense for you, please get in touch. 

When a new tax year starts, many allowances reset. So, checking if you could make use of allowances before Friday 5 April 2024, when the 2023/24 tax year ends, might be valuable.

This guide explores some of the allowances that could help your money go further. You might discover you could reduce your Income Tax liability by using the Marriage Allowance or find a tax-efficient way to save for your long-term goals by using an ISA or pension.

The guide explains seven key allowances:

1. Marriage Allowance
2. ISA allowance
3. Junior ISA allowance
4. Dividend Allowance
5. Capital Gains Tax Annual Exempt Amount
6. Pension Annual Allowance
7. Inheritance Tax annual exemption.

Download “7 allowances you might want to use before the end of the 2023/24 tax year” to learn if you could potentially reduce your tax bill.

If you have any questions about which allowances are suitable for you or would like to create a plan for 2024/25, please contact us.

Each month, we share some of the highlights of what’s been happening in and around Blue Wealth.

Adrian is one small step away from achieving Chartered status

Having submitted his coursework for the AF8 qualification from the Chartered Insurance Institute (CII), that focuses on retirement planning, Adrian Thorley is another step closer to achieving Chartered financial planner status.

Adrian tells us more about his career so far and what it all means.

How long have you been working towards becoming a Chartered financial planner?

I’ve been working towards this specific qualification since returning to a client advice role in September 2019.

I’ve been in Financial Services for 38 years and gained the CII Financial Planning Certificate and Advanced equivalent in the early and mid-90s. Shortly after that, I left the UK for Guernsey, where I worked for 13 years. While there, I also obtained a local financial services qualification.

Then, when I came back to the UK, I worked for a protection provider servicing the IFA community for eight years, and CII qualifications weren’t really a priority.

After a 21-year gap, I found myself in need of updating and upgrading my qualifications and set to it.

What does the process involve?

A fair bit of study and time – which seems to get harder as you get older.

Some of that study is preparing for exams which you sit and get an immediate result. These I’ve found a little easier.

Other sections were case studies. These are tested by either free-format answers to specific questions, or by coursework. For the coursework sections, I had to manage in my own time alongside the other demands of the business – which proved more of a challenge.

As well as being able to display adequate knowledge and apply it to particular situations, recognising what the CII is after and not forgetting to state the obvious has been most difficult.

What will this mean for you professionally?

There is an increasing awareness of the “Chartered financial planner” qualification and what it means for quality of advice.

To have qualified to that level will be an achievement nearly 40 years in the making and I have everything crossed that my final AF8 coursework submission is successful.

Add to that the fact that two of our advisers have already got there and there’s also the incentive of putting a stop to the inferiority complex!

What’s next?

At 56, I hope that success in achieving Chartered status will be the end of the road in terms of qualifications!

That said, the CII is always looking to improve the quality of advice and the profile of the profession in the eyes of the public. With that in mind, introduction of yet more qualifications would never surprise me.

Would I go for it? I guess you should never say never…

More recommendations and more donations for BillyChip

Once again, we’ve sent more money to BillyChip thanks to your referrals.

We greatly appreciate your support and your willingness to tell your family and friends about the work we do. Your recommendations really do mean the world to us.

As a quick reminder about our charity incentive, we make a £50 donation to BillyChip for every initial meeting we have that comes from a client recommendation. However the meeting takes place, we’ll donate.

In short, if you recommend your friends, family or colleagues to us and we meet with them, we’ll make a £50 donation on your behalf.

If you know of anyone that would benefit from our help, please pass on our details, or forward the newsletter to them so they can get a feel for what we do.

Happy holidays

Over the Christmas period, we want to let the whole Blue Wealth team spend as much time as they can with their family, friends, and loved ones. This means that the physical office will be closed on:

• Wednesday 28 December
• Thursday 29 December
• Friday 30 December

Emails and telephone calls will be monitored throughout the holidays, so please don’t hesitate to get in touch if you need our help.

Instead of sending Christmas cards this year, we’ll be donating to charity. Thank you for your continued support.

We wish you all a very happy Christmas and a healthy and prosperous new year.