sm128 - Flipbook - Page 2
MAY / JUNE 2026
Contents
Inside
this issue
06
A major shift in pension taxation is set to reshape
wealth-transfer planning in the UK. From 6 April 2027,
unspent pension pots will no longer be exempt from
Inheritance Tax (IHT) and may be taxed at 40% if
your estate exceeds the IHT threshold. On page 08,
we explain how this change challenges traditional
strategies and why families should rethink how they
draw down their retirement assets. Early preparation,
including estate valuation and exploration of taxefficient options such as gifting or trusts, will be
essential to protect your legacy.
03
08
Long-term investing
inflation erode retirees’ spending power. While some
Geopolitical concerns and the importance
Pensions and Inheritance Tax:
Big changes coming in 2027
return for fulfilment, others cite loneliness or financial
of staying the course
Understanding how removing the pensions
04
exemption could affect your legacy
'Unretiring' is on the rise as financial pressures and
necessity. On page 04, we consider why retirement
is becoming more flexible, with part-time roles and
phased approaches gaining popularity. Proactive
10
options are essential to securing a comfortable and
'Unretiring' is reshaping our
understanding of later life
sustainable future.
Has the financial reality of retirement fallen
Making the most of the
new tax year
short of expectations?
Give your investments a head start and
05
future-proof your finances
financial planning and exploring phased retirement
The new tax year offers a fresh £20,000 ISA
allowance, providing a valuable opportunity to shield
your investments from capital gains and dividend
taxes. Starting early maximises compounding
11
investing can help smooth out market volatility and
Protect your life insurance payout from Inheritance Tax
maintain discipline during uncertain times. ISAs
An increasing number of estates are falling
Navigating the dividend
tax rises in 2026
also offer flexibility, allowing gradual contributions
within the tax net every year
How to safeguard your investment income
06
from higher tax rates
benefits, giving your money more time to grow. Regular
throughout the year. Turn to page 10.
Dividend tax rates increased from 6 April 2026,
making tax-efficient strategies more important than
ever. The government raised dividend tax rates by 2
percentage points. The ordinary rate rose to 10.75%,
and the upper rate to 35.75%, while the additional rate
Taking charge of your retirement
Empowering your future with greater
pension freedom
12
Your health could be the
key to a larger pension
remains at 39.35%. However, you don’t pay tax on
Maximise your pension by sharing your
dividend income within your personal allowance (£12,570
health story
for 2026/27) or your annual dividend allowance of £500.
On page 11, we explain planning options.
A complete list of the articles featured in this issue
appears opposite on page 03. t
Planning for
tomorrow, today
Our personalised financial and wealth
strategies will help you achieve your life
ambitions while safeguarding your family’s
future. To discuss this further or to learn more,
please get in touch with us.
02
Information is based on our current understanding of taxation legislation
and regulations. Any levels and bases of, and reliefs from, taxation are
subject to change.
The value of investments may go down as well as up, and you may get
back less than you invested.
The content of the articles featured in this publication is for your general information and use only and is not intended
to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed
to be, or constitute, advice. Although every effort has been made to provide accurate and timely information, there
can be no guarantee that it is accurate as of the date it is received or will remain accurate in the future. No individual
or company should act upon such information without receiving appropriate professional advice after a thorough
examination of their particular situation. We cannot accept responsibility for any loss arising from acts or omissions
taken in respect of any articles. Thresholds, percentage rates and tax legislation may change in subsequent Finance
Acts. Levels, bases, and reliefs from taxation are subject to change, and their value depends on the investor’s
individual circumstances. The value of your investments can go down as well as up, and you may get back less
than you invested. Past performance is not a reliable indicator of future results. The Financial Conduct Authority
does not regulate tax advice, Inheritance Tax planning, trusts, estate planning, Will writing or Cashflow Modelling.
