Reid Financial Planning

𝗛𝗼𝘄 𝗽𝗲𝗻𝘀𝗶𝗼𝗻 𝗰𝗵𝗮𝗻𝗴𝗲𝘀 𝗰𝗼𝘂𝗹𝗱 𝗮𝗳𝗳𝗲𝗰𝘁 𝘆𝗼𝘂𝗿 𝗶𝗻𝗵𝗲𝗿𝗶𝘁𝗮𝗻𝗰𝗲 𝘁𝗮𝘅 𝗽𝗹𝗮𝗻𝘀 👇

For many people, a pension is one of their biggest assets. From April 2027, it could also become an important inheritance tax (IHT) consideration. From this date, most unused pension funds will be included when the value of someone's estate is calculated for IHT purposes.

For some families, this will make little difference. For others, especially those with larger pension pots or estates, it could mean that more tax is due and less wealth passes to loved ones.

The below article explores in more detail

A major change to Inheritance Tax is on the way ⚠️

From 6 April 2027, most unused pension funds will be included as part of your estate when calculating Inheritance Tax.

The current Inheritance Tax thresholds remain:
▪ £325,000 Nil Rate Band per person.
▪ An additional £175,000 Residence Nil Rate Band may be available if you leave your home to direct descendants.
▪ Married couples and civil partners can usually pass unused allowances to each other, meaning many couples can potentially pass on up to £1 million before Inheritance Tax becomes payable (where they qualify for the full Residence Nil Rate Band).
▪Anything above the available allowances is generally taxed at 40%.

With pensions soon being included in your estate, many more families could be affected than before.

This doesn't mean everyone should make changes immediately, but it does mean your retirement and estate planning should be reviewed to make sure you're still using the right strategy.

If you've built up a sizeable pension over the years and haven't reviewed your plans recently, now is a good time to do so.

Great way to start the week with some lovely feedback from a client. 👇

Buying a home is an exciting time, but for many people the mortgage process can quickly become overwhelming.

There are documents to gather, deadlines to keep track of, and a lot of questions that come up along the way - especially if it’s your first time buying or you haven’t gone through the process for several years.

A big part of my role is taking away some of that uncertainty, glad i was able to help these clients secure their dream home!

Over the weekend we were once again proud to have sponsored the Duncan McKellar Memorial Bowls Tournament at Rothesay Bowling Club.

It was great to see such a fantastic turnout and so many people coming together to remember Duncan and enjoy a brilliant day of bowling.

Community events like this don't happen without the hard work of organisers, volunteers and everyone who gives up their time to take part, so a huge well done to everyone involved.

Congratulations to all the winners and everyone who took part. Looking forward to next year already

𝐈𝐧𝐡𝐞𝐫𝐢𝐭𝐚𝐧𝐜𝐞 𝐓𝐚𝐱 𝐏𝐥𝐚𝐧𝐧𝐢𝐧𝐠
𝘞𝘪𝘭𝘭 𝘺𝘰𝘶𝘳 𝘸𝘦𝘢𝘭𝘵𝘩 𝘨𝘰 𝘵𝘰 𝘺𝘰𝘶𝘳 𝘧𝘢𝘮𝘪𝘭𝘺 𝘰𝘳 𝘏𝘔𝘙𝘊?

This week I've had a number of conversations with clients around Inheritance Tax planning.

One thing that comes up time and time again is that many people don't realise their estate could be subject to Inheritance Tax until they actually sit down and add everything up.

A family home, some savings, investments, life insurance and perhaps a rental property or two (and as of April 2027 - pensions) can quickly take an estate above the available allowances.

The good news is that there are often planning opportunities available.

This week alone, I've been helping clients:

▪ Review whether gifts can be made during their lifetime
▪ Make sure pensions are being used as tax-efficiently as possible
▪ Understand how trusts may fit into their planning
▪ Structure investments with future generations in mind
▪ Ensure their assets will pass to the people they intend

Inheritance Tax planning isn't really about tax.

It's about making sure more of what you've worked hard to build ends up with your family rather than HMRC.

For many people, the biggest risk isn't the tax itself - it's leaving planning too late.

𝐒𝐚𝐯𝐢𝐧𝐠 𝐚𝐧𝐝 𝐢𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 𝐟𝐨𝐫 𝐜𝐡𝐢𝐥𝐝𝐫𝐞𝐧 𝐚𝐧𝐝 𝐠𝐫𝐚𝐧𝐝𝐜𝐡𝐢𝐥𝐝𝐫𝐞𝐧 👇
Many parents worry that their children will struggle to find their financial feet in the current environment.

Concerns include the flagging jobs market and inadequate retirement savings. Meanwhile, high house prices make it increasingly difficult to take the first step onto the property ladder. These are all factors driving fears that younger generations will face a tougher financial future.

However, there are a variety of investment and saving tools for parents and grandparents who want to support children and grandchildren in building financial foundations. Below we explore some of the main options available 👇

Good news for first-time buyers 👇

The Scottish Government has confirmed the new First Homes Fund will open by the end of June, offering eligible first-time buyers a £10,000 contribution towards their deposit.

The scheme will be available on properties up to £300,000 and is expected to help around 50,000 buyers over the course of this Parliament.

For a lot of people, saving the deposit is the hardest part of buying a first home - so initiatives like this could make a real difference.

If you’re thinking about buying your first property over the next 12-24 months, now is a good time to start planning ahead and understanding what options are available to you.

From Santorini to Rothesay 🇬🇷⛴️

After a great couple of weeks away in Santorini, it’s back to reality today.

Currently on the ferry over to Rothesay for client meetings and looking forward to getting back into the swing of things.

It was nice to switch off for a bit, recharge, and enjoy some sunshine - but also good to be back with a busy week ahead catching up with clients on investments, pensions, mortgages and protection.

𝟐𝟎 𝐝𝐚𝐲𝐬 𝐭𝐨 𝐠𝐨 𝐮𝐧𝐭𝐢𝐥 𝐭𝐡𝐞 𝐭𝐚𝐱 𝐲𝐞𝐚𝐫 𝐞𝐧𝐝𝐬.

That means 20 days left to make the most of this year’s allowances before they reset.

▪ ISA allowance.
▪ Pension contributions.
▪ Capital gains allowance.

Once the deadline passes, that opportunity is gone.

It doesn’t take long to check where you stand - but leaving it too late can mean missing out.

𝟑𝟎 𝐃𝐚𝐲𝐬 𝐭𝐨 𝐓𝐚𝐱 𝐘𝐞𝐚𝐫 𝐄𝐧𝐝
As we approach the end of the tax year, it's important to review your financial plans and make the most of your allowances before they reset.

Consider the following:
▪ Maximize Your Allowances: Ensure you're fully utilizing your ISA and pension contributions.
▪ Review Your Investments: Assess your portfolio for any necessary adjustments.
▪ Tax Efficiency: Explore tax-efficient strategies to potentially save money.
▪ Plan Ahead: Consider any changes in your circumstances as you prepare for the new tax year.