Financial Planner

Samuel Back

large_Samuel Back 1.jpg

medium_Samuel Back 1.jpg

small_Samuel Back 1.jpg

thumbnail_Samuel Back 1.jpg

Samuel Back 1.jpg

In a landmark moment for the UK's economic landscape, Chancellor Rachel Reeves has delivered her inaugural budget, bringing significant changes that could impact your financial planning and long-term goals.&nbsp; &nbsp;Some changes were expected, as we explored in our <a href="https://www.aventur.co.uk/blog/autumn-budget-2024-predictions">Autumn Budget predictions</a>, and some were more of a surprise. &nbsp;While the full details and impact of the budget are still unfolding, we've analysed and compiled the key policy announcements to explain their potential implications. &nbsp;<h2>Tax for Employees</h2> It was confirmed that in line with the manifesto promise, Labour will not raise any income tax or national insurance for employees. It was also confirmed that fuel duty was frozen, and the temporary 5p fuel duty was retained. &nbsp;Under the Tory government, personal tax thresholds were frozen until 2028 and it was confirmed that from 2028-29 personal tax thresholds will be uprated in line with inflation once again. &nbsp;<h2>Capital Gains Tax (CGT)</h2> It has long been suspected, and hinted at through the wording from the election onwards, that one of the taxes that would see a substantial rise was <a href="https://www.gov.uk/government/publications/changes-to-the-rates-of-capital-gains-tax/1cf25453-5b0c-4e7b-9165-65cf117e0af0">CGT</a>. &nbsp;The chancellor confirmed an increase in the rate paid by basic-rate taxpayers from 10% to 18% and from 20% to 24% for a higher/additional rate payer from 30th October. &nbsp;Example: If you held an investment that you had purchased for £100,000 that increased in value to £150,000, you would have a £50,000 gain. &nbsp;Individuals benefit from a capital gains allowance of £3,000, and therefore £47,000 of the gain would be subject to CGT. &nbsp;Under the previous rules, the tax on this would be £4,700 for a basic rate taxpayer or £9,400 for a higher/additional rate taxpayer. &nbsp;Following this rule change, the CGT liability would increase to £8,460 for a basic rate taxpayer or £11,280 for a higher/additional rate taxpayer. &nbsp;<h3>Potential financial planning solutions</h3> There are a number of potential planning ideas that could be utilised to mitigate CGT hikes: &nbsp;<ul><li>Timing of asset sales in line with wider plans &nbsp;</li><li>Making use of spousal allowances &nbsp;</li><li>Utilising tax-advantaged investment schemes &nbsp;</li></ul><h2>Pensions</h2><h3> Pension Tax Advantages</h3> It was pleasing to see that the tax-free cash entitlement of up to 25% was maintained and the speculation around the removal of higher rate tax relief on contributions turned out to be untrue. &nbsp;<h3>New Changes to State Pensions</h3> Basic and new state pension payments will go up by 4.1% next year as Labour have stuck to their commitment to maintain the "triple lock". This will see a full state pension entitlement increase to £11,975.60 annually, an increase of £473.<h3> Pensions and Inheritance Tax (IHT) Changes</h3> It was confirmed that pensions passed on will be subject to IHT from 2027. &nbsp;Most pensions are currently exempt from IHT and not classed as part of your estate when you die. This makes them under the previous rules, a particularly effective IHT planning vehicle. &nbsp;This is also coupled with an IHT threshold freeze until the next election. &nbsp;Example: &nbsp;This is potentially going substantially impact a lot of individuals across the UK. &nbsp;An example of a household impacted by this may be as follows: &nbsp;<ul><li>Home - £500,000 &nbsp;</li><li>Cash - £50,000 &nbsp;</li><li>Chattels - £25,000 &nbsp;</li><li>ISAs - £100,000 &nbsp;</li><li>Pensions - £500,000</li></ul> With pensions outside of the estate, there would be no IHT liability for this household assuming the family home is left to direct family members. &nbsp;As a result of the changes to the budget, the estimated impact would be an IHT bill of £70,000. &nbsp;<h3>Potential financial planning solutions</h3> There are a number of potential planning ideas that could be used in the above circumstance: &nbsp;<ul><li>Using comprehensive cashflow modelling to understand how much is ‘required capital’ and looking at how gifts can be made directly to family members &nbsp;</li><li>Looking at trust planning to reduce IHT &nbsp;</li><li>Considering Expression of Wishes and the planning opportunities for Pension &nbsp;</li><li>Death Benefit Trusts &nbsp;</li><li>Drawing monies from the pension and mitigating the resulting liability / continued IHT liability through tax-efficient investment structures &nbsp;</li><li>Taking monies from the pension scheme to fund insurance policies paid into trust &nbsp;</li></ul>The movement of pensions into the scope of IHT will undoubtedly impact the financial planning of many and will require changes to long-term financial plans. However, as shown above, there are a number of wealth management strategies that we will be able to utilise to mitigate this. &nbsp;<h2>Alternative Investment Market (AIM) shares</h2> For individuals wanting to mitigate IHT whilst retaining access to capital, especially for ISA funds, a common strategy was to invest the funds into AIM market shares, which often held a 100% exemption from IHT. As a result of the rule changes, these will now benefit from a reduced 50% discount. Whilst this remains worthwhile considering given that it takes the effective IHT rate from 40% to 20%, it certainly becomes less appealing. &nbsp;<h2>Business Asset Disposal Relief</h2> <a href="https://www.gov.uk/business-asset-disposal-relief">BADR</a> would be kept at £1m, and would remain at 10% this year, rising to 14% in April 2025 and 18% in 2026-27. For those selling businesses or liquidating their company, this could mean a potential increase in the tax liability of the business sale of £80,000.&nbsp;<h2>Continuation of VCT/EIS legislation</h2> Aventur's holistic financial planning service provides the opportunity to optimise tax advantages investments as Venture Capital Trusts (VCTs) and Enterprise Investment Schemes (EIS). &nbsp;These offer 30% tax relief on investments made and a whole host of other advantages from It was confirmed that these will remain in place until 2035. &nbsp;<h2>Private School Fees and VAT</h2>Somewhat controversially VAT is set to be introduced to private school fees from January 2025, meaning tuition and boarding fees at independent schools will be subject to a 20% VAT charge.&nbsp; For those affected, this additional expense will likely require adjustment to long-term financial plans. &nbsp;Further information about the VAT charge for Private School fees can be found <a href="https://educationhub.blog.gov.uk/2024/11/01/vat-private-schools-everything-you-need-to-know/">here</a>, with additional information likely to be released closer to the January deadline. &nbsp;<h2>Stamp Duty Increase</h2> Stamp Duty was announced to increase for second homes, from 2% to 5% from 31st October. Homes in the purchase process that are set to complete after this date will likely be subject to the new rates. Information around the new rates and who is likely to be affected can be accessed <a href="https://www.gov.uk/government/publications/stamp-duty-land-tax-increase-to-the-higher-rates-of-stamp-duty-land-tax-and-to-the-single-rate-payable-by-non-natural-persons/380cf2b3-cc05-4457-9624-224485c29fb5">here</a>. These budget announcements present both challenges and opportunities for more strategic wealth management. And while the impact of these announced changes may seem unsettling, informed planning could be the best defense for many.&nbsp; One thing is clear though, and that is that the budget's complexities will require truly personalised advice. Our team of financial experts are ready to:<ul><li>Analyse your specific financial situation</li><li>Develop tailored strategies</li><li>Mitigate potential tax impacts</li></ul> <a href="https://www.aventur.co.uk/contact">Get in touch today</a> to discuss your current financial plans or for more information about how the budget could affect your plans. &nbsp;<hr>*Information correct at the time of publishing. This article is provided for information purposes only and should not be taken as individual advice. Aventur is not responsible for the content of 3rd party websites.

medium_Autumn Budget Key Points.jpg

small_Autumn Budget Key Points.jpg

thumbnail_Autumn Budget Key Points.jpg

Autumn Budget Key Points.jpg

Autumn Budget Key Points: How Will your Finances be Affected?

Aventur Team

large_Aventur Profile.png

medium_Aventur Profile.png

small_Aventur Profile.png

thumbnail_Aventur Profile.png

Aventur Profile.png

Are you afraid to ask your parents about money? Money is a sensitive topic for many people, and it can be especially difficult to talk to your parents about it.&nbsp; But it's important to have these conversations. Especially as you get older and start taking on more financial responsibility. &nbsp;Read on to get our tips on how to talk to your parents about money! &nbsp;<h2>How to talk to your parents about money</h2> Some of our top tips to begin the conversation about money with your parents include: &nbsp;<ul><li>Choose the right time and place. Don't try to have this conversation when you're both stressed or tired. Pick a time when you can both relax and focus on the conversation. &nbsp;</li><li>Be honest and open. Don't sugar-coat your situation or try to hide anything. Your parents are more likely to be understanding if you're honest with them. &nbsp;</li><li>Be specific. Don't just mention that you're struggling financially. Tell your parents what your specific financial goals are and how you think they can help you achieve them.</li><li>&nbsp;</li><li>Be respectful. Remember that your parents may have different opinions than you. Be respectful of their opinions, even if you don't agree with them. &nbsp;</li><li>Be willing to listen. This is just as important as talking. Listen to your parents' concerns and try to see things from their perspective. &nbsp;</li></ul><h2>Specific financial topics you could discuss with your parents: &nbsp;</h2><ul><li>Your current financial situation. How much money do you make? How much debt do you have? What are your monthly expenses? &nbsp;</li><li>Your financial goals. What do you want to achieve financially? Do you want to buy a house? Save for retirement? Pay off your student loans? &nbsp;</li><li>How your parents can help you. Are they willing to help you pay for college? Give you a loan? Help you create a budget? &nbsp;</li><li>Their own financial situation. How much money do they have saved? Do they have any debt? What are their retirement plans? &nbsp;</li></ul>It's also important to remember that talking to your parents about money must not be a one-time conversation. It's something you should continue to do throughout your life. Especially as your financial situation changes. &nbsp;<h2>Extra tips for talking to your parents about money: &nbsp;</h2><ul><li>Start by asking them questions about their own financial experiences. This will help you understand their point of view. As well as helping them feel at ease discussing their finances with you. &nbsp;</li><li>Be prepared to answer their questions about your finances. They may want to know how much money you make, how much debt you have, and what your financial goals are. &nbsp;</li><li>Be open to compromise. It's unlikely that you and your parents will agree on everything about money. Be willing to compromise and find solutions that work for both of you. &nbsp;</li><li>Don't give up if the first conversation doesn't go well. Try again later or use a different approach. &nbsp;</li></ul><h2>What to do next &nbsp;</h2>If you're struggling to talk to your parents about money, there are a few resources that can help. You can talk to a financial advisor, a trusted friend or family member, or even a therapist.&nbsp; There are also many books and websites that offer advice on how to talk to your parents about money. If you're ready to set yourself some goals, check out our guide to <a href="https://www.aventur.co.uk/learn/how-to-set-smart-personal-financial-goals">setting SMART financial goals</a>. &nbsp;Talking to your parents about money is a big step, but it's one that can be very rewarding. By following these tips, you can make the conversation go more smoothly and get the support you need!

A dad and son sat at a table both looking and pointing at a laptop

medium_Talking to Parents.jpg

small_Talking to Parents.jpg

thumbnail_Talking to Parents.jpg

Talking to Parents.jpg

How to Talk to Your Parents About Money

Our mission at Aventur is to change the future for financial advice by giving you total control of your money, allowing you to be more informed and better provide for both you and your loved ones. &nbsp;We want to transform the outdated, traditional Financial Advisor model and reduce costs through intelligent back-office systems, so that we can charge lower fees to our clients. We have completely changed the way financial advice can be accessed - meaning no more reports in the post or waiting for a meeting!&nbsp; &nbsp;Our technology solution empowers users to make financial decisions through a uniquely transparent blend of information, education and sophisticated and automated machine learning.&nbsp; Users can set life goals, and allocate finances such as savings, pensions and investments to achieve them and take control of their financial future. &nbsp;<h2>How did we get started?</h2> The founding team behind the company, Stacey Body and Thomas Young, came together in 2020 and combined over 40 years of financial services experience to form a company to disrupt financial services.&nbsp; They had a clear vision to introduce innovation to a very traditional industry – which had long resisted change. To them, it was simple: expensive fees, long and inefficient processes, a lack of transparency and limited use of technology were holding the industry back.&nbsp; They knew that the IFA market had been particularly slow to adopt technology, and relied on traditional practices that were both inefficient and costly. &nbsp;With an estimated 15,000 financial advisors planning to retire in the next 5-10 years, they also noticed that the UK would soon be facing a serious financial advice gap. &nbsp;With less competition on the market, advisors were sure to increase their fees and make financial advice even more unaffordable than it already is. The outcome? An increasing number of people unable to afford financial advice - most likely to be those that need it most. &nbsp;Our founders couldn't let this happen. After discovering that they shared the same frustrations, and that they shared a dream to provide a solution to these issues experienced by customers, they combined forces to create Aventur! &nbsp; &nbsp;They built the business from the ground up with the intent of doing things differently, and believe that anyone - regardless of their financial position - should have total access to all their financial data, the opportunity to educate themselves around their finances and be able to seek quality and trustworthy financial guidance. &nbsp;Everything we do is built upon this belief. We embrace technology to simplify processes and increase efficiency, giving clients true value for money, control, and confidence.&nbsp; Our mission is to bridge the advice gap and teach investors what they need to know, reduce the cost of servicing clients and help people to access advice at a lower cost than has ever been possible, all while giving them complete control of their finances. &nbsp;<h2>What’s next for Aventur?</h2> We are both challenging the outdated financial services industry, and demanding a better client experience by increasing transparency, knowledge, and wealth, all while reducing investment risk and most importantly, costs! &nbsp;Our mission is to focus on meeting the growing demand for a more modern, transparent, and affordable financial advice solution, and to address many of the problems in the industry, most of which have been further exacerbated by the recent global crisis. &nbsp;We are also passionate about our social and environmental responsibilities, and believe in putting the environment and wider society at the centre of how we operate, by balancing purpose and profit, which is why we are a certified B Corp organisation and offer clients a dedicated ESG investment portfolio. &nbsp;Ready to take control of your financial future? Join us on our mission to revolutionise financial advice and empower individuals like you. <a href="https://www.aventur.co.uk/contact">Contact us today</a> to learn more and start your journey towards financial freedom and transparency. &nbsp;

JOIN THE WAITLIST

Register Free

No commitment

Aventur