Bonus Planning

At H-J Wealth Planning Ltd, we offer tailored bonus planning advice to make sure that your bonus can either be taken tax efficiently or the proceeds are invested into the most tax efficient vehicles.

Some of the solutions we have are:

• VCT schemes which offer 30% tax relief up to £200,000 of investments per annum (provided the shares are held for a minimum of 5 years).*
• EIS schemes which offer 30% tax relief up to £1,000,000 of Investments per annum.*
• ISA Investments.
• Bonus and Pension Salary sacrifice schemes.
• Family Trusts. (Trusts are not regulated by the Financial Conduct Authority)

Our advice is based on an understanding of your personal circumstances and is tailored to meet your lifestyle and requirements. We offer the benefit of a long-term relationship to ensure that your plans remain on track for your retirement.

*All VCTs and EISs must invest in unquoted UK smaller companies and such companies, by their nature, involve a higher degree of risk than investment in larger companies. As such there is a risk that any of the investments may not perform as hoped and in some circumstances may fail completely. Also, due to the nature of underlying assets, VCTs and EISs are fairly illiquid and such investors must be aware they may have difficulty, or be unable to realise their shares at levels close to that which reflect the value of the underlying assets. Therefore this type of investment should not be considered unless you are willing to accept a higher level of risk.

Please note that the favourable tax treatment of these products may not be maintained and may be subject to future changes in legislation.

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

Tax Planning advice

Since April 2010, those with income exceeding £150,000 are subject to an increase in the prevailing rate of income tax. This initially saw these higher earners paying half of their salaries to Her Majesty's Revenue & Customs, but since April 2013 the rate has been 45%.

There is, however, a sting in the tail for people with "adjusted net" income of more than £100,000 - broadly income less certain allowable deductions - who will suffer an effective rate of 60% on income between £100,000 and £116,210 because of the erosion of their personal allowance.

As a higher income earner, how will these changes in pension tax relief affect you and your plans for retirement?

Our Investment Approach

The St. James's Place Group has a distinctive approach to investment management. We recognise that no single investment house has a monopoly on investment expertise and therefore adopt an effective solution to this problem. We do not employ any in-house investment managers, but instead we carefully select a number of external managers of outstanding ability to manage our range of funds.

The cornerstone of the St. James's Place approach is its Investment Committee, which ‘manages the fund managers' on behalf of our clients. We retain independent specialist investment consulting firms, Stamford Associates and Redington, who play an important role in the selection and monitoring of the managers. The relationship with Stamford Associates is unique in that St. James's Place is the only company it works with that provides wealth management advice to private individuals.

To arrange a no obligation review, contact us.