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Welcome to EJ Financial Limited

Impartial Investment, Pension and Tax Planning

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01892 234884

or 01635 777795

  • Stockmarket
  • Tax Planning
  • Retirement Planning
Stockmarket1 Tax Planning2 Retirement Planning3

Tax Planning

There are three major taxes that you can mitigate with some tax planning.

Some are more high risk than others but we do not operate in ‘extremely high risk’ areas.

In order of consideration I would place the Tax Planning options as follows:

1. Pension Contribution (Mitigates income tax and Inheritance Tax)

The tax relief is equivalent to raising your income tax personal allowance.

Did you know for example, that for every £2 you earn over £100,000 per annum, you lose £1 of your personal allowance. So, if you earn £123,000 or above per annum, you will lose all of your £11,500 allowance and this is then equivalent to paying 60% tax.

A gross pension contribution of £23,000 will take you back down to £100,000 and regain your tax exempt £11,500 allowance.

Retirement income is taxed at the then current marginal rates, after the 25% tax free cash has been taken.

Read more about pensions

2. ISA Contribution (Mitigates Capital Gains Tax and Income Tax)

There is no tax relief on ISA contributions but income in retirement is all paid out tax free.

The current 2017/18 maximum contribution is £20,000 per tax year.

Read more about ISAs

3. Enterprise Investment Schemes (EIS) (Mitigates Income Tax, Capital Gains Tax and Inheritance Tax)

The EIS investment is classified as being in the higher risk area and you have to be willing to release the monies for at least 4 years and preferably to death.

There are three major benefits; a) 30% tax relief set against this tax year or last tax year b) the investment is outside of your estate for IHT calculations after 2 years c) if money from a Capital Gain is used the CGT is deferred for as long as you hold the investment (there are ways of gradually withdrawing the monies.

For more information on EIS investment, Talk to Ted on 01892 234884 or 01635 777795

4. Business Asset Relief / Alternative Investment Market (AIM) ISAs (Mitigates Inheritance Tax)

These investment plans are classified in the higher risk area.

They are outside of your estate for IHT calculations after two years and if withdrawals are required, the investments are fully accessible.

For more information Talk to Ted on 01892 234884 or 01635 777795

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  • Stockmarket
  • Tax Planning
  • Retirement Planning

Berkshire Office:
EJ Financial Limited • 26 Inglewood House • Templeton Road • Kintbury • Berkshire • RG17 9AA

Sussex Office:
EJ Financial Limited • 2nd Floor • Johnsons Building • The Broadway • Crowborough • East Sussex • TN6 1DE

EJ Financial Ltd. Registered in England and Wales No 9370740
EJ Financial Ltd is authorised and regulated by the Financial Conduct Authority No 670594

01892 234884020 3657 907901635 777795

The Financial Conduct Authority does not regulate taxation and trust advice.

The value of your investment can go down as well as up and you may get back less than you have invested.

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.

NOTE: None of the above constitutes advice, always consult a professional adviser before making any investment decisions.

Please talk to Ted on 01892 234884 or 01635 777795 for further information.

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