Independent Financial Life Planners Bishop's Stortford: Building long term wealth

Tuesday, 3 May 2016

Building long term wealth

Enable’s experienced IFA’s in Bishops Stortford know that owning a property especially one that is your home has been one of the sure-fire ways to build long-term wealth in recent years. Recent date from website Zoopla indicate that there are currently more than 600,000 property millionaires in Britain. “A price tag that was once the exclusive preserve of stately homes or mansions is now an increasingly common label for modest houses.’ Says Lawrence Hall, of Zoopla.

So how do you make sure passing on your property is tax efficient? Capital gains tax is not an issue for owners of properties they live in. But it is inheritance tax levied at 40 per cent that can take the edge off property wealth for the next generation. Recent figures from the Office for National Statistics indicate that inheritance tax charged in the last tax year totalled £4.6 billion. Inheritance tax is currently charged at 40 per cent on the values of estates above £325,000, although for married couples and civil partners, they effectively have an allowance of £650,000 because they can pass on their assets and possessions to each other tax-free.

From next year however a ‘transferable main residence’ inheritance tax allowance will be introduced. It is being phased in gradually; starting at £100,000 from April 2017, rising by £25,000 each year till it reaches £175,000 in 2020. By 2020, this will effectively raise the inheritance tax threshold to £1million for married couples who leave their home to children or grandchildren. To make sure your wealth is not eroded by inheritance tax some astute financial planning can help Enable’s IFAs are here to help.

Source: Tax Efficient Review

Issued by: Enable Independent Financial Life Planners •  25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.