Lester Brunt

Service Definitions

Investment Planning

ISA

Individual savings accounts (ISAs) are a tax friendly investment that let you save up to £20,000 per tax year without paying any Income Tax and Capitals Gains Tax on what you earn. We help our clients find the right type of ISA and get the most out of their investment.

Four Main types of ISA to choose from: Cash ISA, Stocks and Shares ISAs, Innovative Finance ISAs and Lifetime ISAs.

The main difference between an ISA and any other savings account is the tax efficiency, so you can get more for your money.

Individuals who are 18 or over can invest up to £20,000 into an ISA this tax year.

HOW IT WORKS

Our expert advisers help clients whether they are looking to open their very first ISA or transfer an existing ISA. We help our clients pick the type of ISA best for them, taking a holistic view of their circumstances and building a strategy around what they hold most dear. SJP draws on the expertise of some of the world’s top investment professionals to manage their ISA funds. This enables clients to match the risks they are prepared to take with a well-diversified and balanced portfolio, to create an appropriate strategy to aim for income or capital growth. Through regular reviews, we adjust the mix to reflect changing needs and markets.

 

The value of an ISA 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 you invested.

The favourable tax treatment of ISAs may be subject to changes in legislation in the future.

Innovative Finance ISAs, Cash ISAs and Lifetime ISAs are not available through St. James’s Place.

Junior ISA - JISA

Junior ISAs are a great way to put money away for a child’s future. The tax advantages and flexibility they provide make them the first option for many savers. Any returns are free from Income Tax and Capital Gains Tax. Savers can typically make regular or one-off payments, up to the current annual limit. Money held in a Junior ISA is locked-in until the child reaches 18, after which your child has access to the funds or it can be converted into an adult ISA and continue to enjoy the same tax advantages.

Is available to children under 18 who don’t qualify for a Child’s Trust Fund.

Like a traditional ISA it is available as either a Cash ISA or investments can be run through Stocks and Shares. It is possible to take out one of each and split the contributions, on the understanding the total does not exceed the limit for that tax year.

A JISA offers the opportunity for tax efficient growth that will not be deducted at the point of withdrawal.

HOW IT WORKS

Whether it’s starting an education fund for children and grandchildren, or giving them a head start onto the property ladder, we use our expertise to help you determine the best method for you and your family in the most tax efficient way, through a Cash or Stocks and Shares JISA.

Our advisers sit down with you and together build a tailored plan to set out how you can invest money to help build the future for a child or grandchild. Outlining which ISAs are best for you, helping you to understand how your money is working. Depending on how much you want to put away or how quickly our advisers will find a solution that fits your circumstance, creating a carefree way to save for your loved one’s future.

 

The value of an ISA 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 you invested.

The favourable tax treatment of ISAs may be subject to changes in legislation in the future.

Cash ISAs are not available through St. James’s Place.

Unit Trusts

Unit Trusts provide a range of solutions and the potential for medium-to-long-term capital growth and income. A Unit Trust is a collective investment vehicle in which fund managers are responsible for investing your money which is pooled with funds from other investors. Our advisers help clients pick the right trusts* and the right fund managers for their risk appetite, giving clients the confidence that their money is where they want it to be.

Unit Trusts are unincorporated mutual funds that pass profits directly to investors rather than reinvesting in the fund.

The investor is the trust’s beneficiary.

Fund managers run the Unit Trust and trustees are often assigned to ensure that the fund is run according to its goals and objectives.

HOW IT WORKS

Another investment vehicle we use to help our clients save money whilst helping it grow. Normally used to help clients invest money over the ISA maximum threshold, as this can feed the ISA with the annual allowance automatically. Not quite as tax efficient but it can be a good way for our clients to take money out of their savings and make sure it goes to the people they want it to. We help our clients invest in Unit Trusts as part of a focused tax-planning strategy. Unit Trusts provide the flexibility to our client so they can utilise their annual Capital Gains Tax allowances and when used in conjunction with a trust, also offer an alternative solution for investing on behalf their children.

 

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select which means that the value can go down as well as up. You may get back less than you initially invested.

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on your individual circumstances.

* Trusts are not regulated by the Financial Conduct Authority.

Investment Bonds

Creating and maintaining the right investment strategy plays a vital role in securing your financial future. That means identifying your short and long-term objectives, selecting the most appropriate investment products, and undertaking the right planning at the right time aiming to increase the value of the money you invest, while minimising the amount of tax you pay.

 

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

Access investment management services and fund management expertise, distinctive in the UK.

Manage and potentially reduce your personal liability to tax, as well as having access to a range of options to take a regular, tax efficient income.

Diversify investments and help spread risk, with the freedom to switch funds easily as your needs change.

OFFSHORE BONDS

Offshore investment bonds do not suffer any tax (other than any unreclaimable withholding taxes) whilst invested and can be invested in a choice of currencies.

ONSHORE BONDS

Onshore investment bonds are taxed on their investment returns handled by the insurance company ‘behind the scenes’ and a basic rate tax credit applies to any chargeable event gains.

HOW IT WORKS

Investment bonds are life assurance plans issued by insurance companies and can be a flexible and valuable component of any wealth management strategy.

Although subject to income tax, they offer considerable flexibility to determine when the tax is paid, and in the case of offshore investment bonds, if income tax is paid. This can be particularly attractive to higher rate taxpayers. Overall, investment bonds have some unique features due to their life assurance structure which can be useful in structuring your wealth. As with all investments, what is right for you will depend on your individual circumstances and your adviser will help you structure your investments in an appropriate way for your individual situation.

 

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

Currency movements may also affect the value of investments

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.

If the income taken exceeds the growth on the investment, the capital will be eroded.

Retirement Planning

Pension Advice

As we are living longer than previous generations, planning for a long retirement is one of life’s priorities. Maximising your pension fund should play an important part in your planning, which is why we help utilise your annual allowance, the carry forward of unused allowances and protecting your lifetime allowance.

Saving into a pension can be a smart way to invest in your future. It’s ok to start small if you need to, gradually building up retirement savings over time.

Getting your retirement savings off the ground and starting your pension as early as possible means that you’ll have a better chance of achieving the retirement that you have in mind.

In the current tax year (2022/23), the standard annual allowance is £40,000 per year (or 100% of your earnings if lower).

HOW IT WORKS

A pension is a long-term saving plan, built up through your working career to provide the income to support your later life. Typically, you can’t access your pension until you turn 55, but whether you’ve just started your first job, moved roles or are planning on retiring in the immediate future, we can help guide you on the most effective way to get the most out of your retirement. Pensions are one of the most tax-efficient ways to save for the future, as you can receive tax relief on your contributions. This means, subject to certain allowances, the government will add money to your contributions. Our expert advisers are on hand to help with all your pension questions and worries.

 

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. 

The levels and bases of taxation and reliefs from taxation can change at any time Tax relief is dependent on individual circumstances. 

Planning for Retirement

It is important to plan for your future, regardless of your life stage. Successful retirement planning is about making the right decisions at the right time. We will discuss the opportunities open to you and outline which of our products best fit your circumstances.

We’ll put you on the right footing, offering a range of products that include; SIPPs, Trustee Investment Schemes, Retirement Plans, Drawdown Plans and Annuities.

You can use our retirement calculator to see what monthly saving you may need and your expected income from existing funds.

If you are self-employed, you’ll need to take a more hands on approach to retirement, one of our financial advisers will help get your plan off the ground.

HOW IT WORKS

Retirement planning is a vital step towards creating the future you want. Our advisers will spend time with you, getting to know your plans and ambitions and then assess your options to ensure your pension is working as hard as it needs to. This could be opening a new SIPP or trustee scheme, or simply reviewing your existing pensions to see if they are working as hard as they can be for you. We help you to invest in pensions as part of a focused, tax-planning strategy that covers the long-term process of saving for the future.

 

The value of an investment with St. James’s Place will be directly linked to the performance of funds you select, and the value can therefore go down as well as up. You may get back less than you initially invested. 

Nearing Retirement

If you’re approaching retirement, the right support can make a huge difference, especially if you want your existing income to be replaced by an income from your pension. Understanding what choices you have to make before you retire is vital to forming a suitable plan for that day, speaking to one of our advisers can help you get everything ready ahead of time.

Protecting your retirement savings is more important than ever, as individuals have access to defined contribution pensions from 55.

As you get nearer to retirement your options for maximising your pension will start to diminish, which is why its important to act now.

The right advice can make a huge difference and it is important that you talk to an adviser to make the appropriate choices for your specific circumstances.

HOW IT WORKS

As you near retirement, getting clarity on your options can make a huge difference and one of our qualified advisers will cover everything from pension drawdowns to purchasing annuities. We provide specialist advice to help you understand your choices and help decide on the outcome best suited to your lifestyle. You’ve worked your whole life for this moment, so you want reassurance that you’re making the right choices. Our advisers will tailor a specific plan, personalized to your requirements, to provide the peace of mind that your pension plans are prepared and ready to go when you need them.

 

* The level of income from pension drawdown is not guaranteed. There is a very real chance that you may need to reduce your drawdown income in the future, in particular, if the performance of your investments is lower than expected, or you live to a greater age than originally anticipated when choosing your initial income level. 

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.  

SIPP

Self-Invested Pension Plans give a much greater range of investment options than most traditional pension plans. SIPPs make tax-efficient savings, along with the benefit of flexibility which allows you to spread the risk. However, active management is essential as SIPPs tend to have higher costs than a standard pension and are generally only suitable for fairly experienced investors.

SIPPs are not suitable for everybody and generally, only those who are fairly experienced at actively managing their investments should consider this type of pension plan.

SIPPs work in very similar ways to a personal pension however they are more flexible and offer you more control over investment. This means a SIPP can be a great option for those who want to self-manage their pension.

The investment growth within the fund is currently free from all UK Income and Capital Gains Taxes.

HOW IT WORKS

Managing pensions can be complex but one of our advisers can check if targets are on track. If you are an experienced investor and want to monitor the activity of your pension, one of our expert advisers will help you to set up a SIPP. SIPPs are a modern and flexible way of saving for retirement offering a wide range of investment choices with many different funds available to invest in. You should always take advice to ensure investment compatibility, especially when comparing charges, and matching your risk appetite. 

SIPP Investment areas: 

  • Bonds
  • Commercial property
  • ETFs 
  • Funds 
  • Investment trusts  
  • Shares 

 

The value of a SIPP can fall as well as rise. You may get back less than the amount invested. 

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.  

The flexibility of a SIPP allows you to spread the risk, especially if some investments perform badly. However, these do tend to have higher costs than a standard pension and active management is essential to maximise the benefits of the wider investment choice on offer. For these reasons, they will not be suitable for everybody and generally only those who are fairly experienced at actively managing their investment should consider this type of investment.

Retired

When it comes to taking retirement, there is no one-size-fits-all solution and instead a lot of independent factors to consider. From managing income to understanding tax implications when you decide to access the assets, pensions, investments and savings, a qualified adviser will guide you on the right course of action.

A pension will be the main source of retirement income for most people, but if you have accumulated different investments and savings, it’s worth thinking of this as a portfolio of retirement assets that you can switch on and off to fit your retirement plans.

You may find that you use different assets or sources of income to suit your needs at different times throughout retirement, particularly as you gradually shift from working to being fully retired.

What works for someone else may not be the right method for you.

HOW IT WORKS

Our advisers are always on hand to assist with retirement queries and offer the best advice to help you make the most of your pension. Every retirement is different, so advisers will work with you to create a retirement solution that is reflective of your needs, family, lifestyle and your changing circumstances as you get older. As your financial and lifestyle needs in retirement are likely to change over time, an adviser can plan a combination of solutions and products to offer the flexibility you need. 

Options: 

  • Annuity 
  • Drawdown 
  • Partial withdrawals (UFPLS) 
  • Total withdrawal of Pension funds 

Trustee Investment Schemes

A Trustee Investment Plan lets pension scheme trustees invest in a wide range of funds. Whether it’s a single contribution or a regular premium contribution, our advisers can help with your plan. A Trustee Investment Scheme also provides flexible withdrawal or surrender options. Speaking to our advisers can help guide you with you plan and getting the most out of it.

 

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

A trust is a way of managing assets, money, investments, land and buildings for people.

Trustees are responsible for safeguarding the pension scheme, making sure it is operating correctly and that members’ benefits are secure.

Any pension benefits in death would not fall under probate rules.

HOW IT WORKS

Trustee Investment schemes works by using your investment to buy units within the funds of your choice. The funds chosen may invest in stocks and shares, bonds, property or cash. The value of these assets will determine the value of the units you hold. The income from these assets may also increase the unit value. Our advisers can help you chose how to shape your plan, explain the benefits and how it operates. Working with one of our advisers will enable you to plan for your retirement whilst getting the most out of you Trustee Investment Scheme.

Get in touch today to see how one of our advisers could help you.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select, and the value can therefore go down as well as up. You may get back less than you initially invested.

Intergenerational Wealth Management

Estate Planning

Estate planning can help you navigate and provide protection for the future. Whether you are dealing with power of attorney or managing a person’s legal, financial or personal tax affairs before or after they have died, it is extremely important to ensure you have the right support.

Put in place a Power of Attorney (POA) in case of incapacity at any time.

Make sure your financial affairs and your will are arranged to allow for a tax-efficient transfer of your assets on death.

Create a tax-efficient fund to provide a legacy or to enable the beneficiaries of your estate to meet any Inheritance Tax (IHT) liability.

Creating wealth takes enterprise, vision and usually a mixture of hard work and good fortune. Retaining and protecting wealth also requires vision, with well thought out trust and estate planning.

HOW IT WORKS

Wealth acquired over your lifetime will, most likely, have already been subject to tax of one sort or another. Understandably, therefore the thought of paying tax on the value of assets you might leave others after you die is not an attractive one. Yet due to inertia and a reluctance to discuss death and inheritance with loved ones, that’s exactly what can happen. Without a will your assets will be distributed under the terms applicable to intestate estates (estates where a valid will does not exist) which could see the amount your children inherit exceeds the inheritance tax threshold. Your adviser will explore the tax breaks and allowances available to help you distribute your assets to others in life and death, structuring your plans in a tax-efficient way so your family get as much money as possible.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

Powers of Attorney and advice relating to a Will involves the referral to a service that is separate and distinct to those offered by St. James’s Place and along with Trusts are not regulated by the Financial Conduct Authority

Trusts

If you can afford it, setting up a trust that no one can touch or benefit from while you are living is a useful way to reduce IHT liability. You could arrange a trust for a child, or grandchild, so they will have money coming to them upon reaching a certain age. Alternatively, you could use the trust to support a family member who has a disability.

Trusts have their limitations. For instance, recipients could be liable for Capital Gains Tax in some circumstances, unless the trust is written into your will.

Putting your life insurance policy into a trust can ensure that when you die, any life insurance payout is not subject to IHT

It normally doesn’t cost any more to ring-fence your policy so that it’s separate from other taxable assets, but any named trustee would need to outlive you in order to benefit.

The difference between standard life cover and one in trust is that the latter is usually free from taxes, such as Income Tax, which count towards your IHT bill.

HOW IT WORKS

It is not unusual to find individuals who have accumulated capital over their lifetime which is unlikely to be spent in full, and often even in part. However, recognising this situation by itself does not move you towards a solution. The idea of gifting some or all this money to the next generation is difficult to contemplate, in case of an unforeseen emergency, or for medical or care reasons. This means that passing the money to the next generation is considered too risky and consequently the money remains in the individual’s estate to be taxed at death.

The Loan Trust has been designed to provide an inheritance tax-efficient solution for anyone in this predicament. Our advisers use their expertise to help you find a solution that works for you and your family.

 

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.

Will writing involves the referral to a service that is separate and distinct to those offered by St. James’s Place. Wills are not regulated by the Financial Conduct Authority.

Trusts are not regulated by the Financial Conduct Authority.

Inheritance Tax Planning - IHT

Once considered a tax on the truly affluent, Inheritance Tax (IHT) now affects more families than ever before. Careful Inheritance Tax (IHT) planning is all about passing as much of the proceeds of an estate as possible to chosen beneficiaries rather than to HMRC. It is also about maintaining flexibility and control over any arrangements that are made.

Drawing up a will* and ensuring it properly expresses your wishes and is planned correctly to save the maximum amount of tax.

Transferring assets through the prudent use of lifetime gifts.

Create an IHT- efficient fund to enable beneficiaries of an estate to meet the tax liability without disturbing family wealth.

HOW IT WORKS

There are a number of vehicles and various methods that can be used to help mitigate Inheritance Tax (IHT), but no one method can, or should, be considered a ‘complete solution’ as each individual will have different circumstances and requirements. However, ‘gifting’ and/or employing the use of trusts are often considered key strategies in protecting your assets.

 

Making a gift of certain amounts of money or assets can be a valuable exemption from Inheritance Tax. A trust places the right money, in the right hands, at the right time. With the complexities involved with Inheritance Tax (IHT), if a simple solution can be found, it will usually be the best one. Our advisers will work with you to understand your individual situation and put in place the right plan for your needs.

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 initially invested.

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.

*Will writing involves the referral to a service that is separate and distinct to those offered by St. James’s Place and along with Trusts are not regulated by the Financial Conduct Authority

Gifts and Gifting

Should a liability to inheritance tax be triggered by your death, a large proportion of your wealth (including your assets) such as the family home, investments and even heirlooms might have to be sold.  However, steps can be taken to reduce the value of your estate and leave assets for future generations through gifting.  Whilst there are no limits on gifting, subject to exceptions, you must normally survive each gift by seven years to avoid any potential tax implications.

Each year you can gift up to £3,000 and have the amount treated as being free from inheritance tax with immediate effect.

Each year you can give away £250.00 to as many different people as you wish and have each payment treated as being free from inheritance tax.

On the event of a marriage, each parent can gift £5,000 to a child, each grandparent can give £2,500 to a grandchild and anyone can give £1,000 in celebration of a marriage and all these gifts are deemed to be immediately free from inheritance tax.

Any gift that is deemed to be ‘regular’, paid out of income, with no reduction to lifestyle is both immediately free from inheritance and limitless in amount.

Gifts to charities, donations to political parties or institutions which exist for public benefits, (universities, national museums and the National Trust) are limitless in scope and are immediately free from inheritance tax.

HOW IT WORKS

When it comes to taking full advantage of the exemptions on your Inheritance Tax, gifting can be one of the most valuable options available to you. There are several approaches you can take with gifting. Working together we can help you better understand which ones are available to you and which are best suited to your own individual circumstances. It is sensible to try and ensure that you maximise these exemption opportunities as much as possible. Sitting down with one of our advisers will allow you to have any questions answered and plan for the future. Remember you don’t have to make all your decisions on ‘day one’.

 

The information on this website is based on our interpretation of the current law and HMRC practice.

Taxation legislation and HMRC practice may be subject to unforeseen changes in the future.

Later Life Planning and Long Term Care

Thanks to better medical care and healthier lifestyles, we all have the prospect of living longer. This increase in life expectancy brings a number of financial implications, coupled with the possible implications associated with needing care in the future, protecting your family and estate against risk. 

KEY BENEFITS LATER LIFE PLANNING

Safely make monetary gifts to loved ones across your lifetime

Plan your exposure to Inheritance Tax

Arrange a pre-set income for life to help safeguard against future events

Keep control of your money

Benefit from using gifts and trusts*

KEY TAKEAWAYS LONG-TERM CARE

There will be an increasing number of older people; the number of people aged 85 years and over was estimated to be 1.7 million in 2020 (2.5% of the UK population) and this is projected to almost double to 3.1 million by 2045 (4.3% of the UK population).**

How can I protect my estate or the estate of a loved one from loss due to funding for long term care?

How can I best meet the costs of looking after a family member who is about to enter long term care or who is already in long term care?

Can I afford to pay the fees for as long as is needed?

HOW IT WORKS

Apart from the emotional cost, arranging care for yourself or a loved one is also extremely complicated. Dealing with issues like mental capacity, eligibility for state benefits, Lasting or Enduring Powers of Attorney*, the type and location of the care home and funding the care itself causes stress and worry. And yet less than 15% of people who do not qualify for financial support will have sought appropriate, and regulated, financial advice before entering care.** Many thousands of people share these same concerns. They feel they have more than enough to live on now, provided nothing happens to require them to move into a care or nursing home in the future. If this were to happen, their expenses could rise dramatically. The St. James’s Place Later Life Planning Scheme (‘‘the Scheme’’) is specifically designed to address this problem.  Sitting down with one of our advisers will allow you to have any questions answered and make a plan for the future.  

Remember you don’t have to make all of your decisions on ‘day one’ but knowing you have a plan in place will give you peace of mind to enjoy your retirement. 

 

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. 

* Powers of Attorney involve the referral to a service which is separate and distinct to those offered by St. James’s Place and along with Trusts are not regulated by the Financial Conduct Authority. 

Sources: **National population projections: 2020-based interim, 2022

Passing money through the generations and stretching retirement income across generations

Today’s retirement is a different prospect from the experiences of generations past, with greater flexibility and personal choice for the next stages of your life. Depending upon the choices you make, you can keep options open throughout your retirement journey and effectively manage retirement savings to meet goals as they change over time. 

Research shows that over a third of newly retired people (34%) provide financial support to their family1.

Retirement income will increasingly need to stretch across generations within often complex family structures.

On average, retired individuals provide their extended family with nearly £3,700 a year, with 10% of retirees giving family members over £500 a month, or more than £6,000 a year1.

HOW IT WORKS

Retirement is nuanced, subjective and ever-changing. The previous ‘cliff edge’ retirement is supplanted by a ‘phased’ approach, slipping into part-time work, self-employment or new business ventures. The path into retirement can take many years and as we are living longer than previous generations, retirement savings need to be managed, as we gradually give up work. Retiring flexibly brings freedom, choice and responsibility to ensure your money lasts. A chat with one of our advisers will answer your questions and make a plan for the future. You don’t have to make all of your decisions on ‘day one’ you can make decisions throughout and change your plans if you need to. 

1Key Later Life Finance, 2022

 

Investing for a better future for your children

Setting up an investment plan for a young family member has many advantages. Putting aside funds on a regular basis means that even modest amounts will benefit from the effects of compounding and reduce the risk of investing significant amounts at the wrong time or during periods of market volatility.

 

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.

Just like adults, children have their own tax allowances including a Personal Allowance and Capital Gains Tax (CGT) allowance matching that of an adult. Investment arrangements can be established to maximise the returns achieved by utilising a child’s CGT/ Personal Allowance.  

Compound growth could mean that a child or grandchild has a substantial fund to assist with university, life in general or have a significant contribution towards their first house deposit. 

The tax-friendly Junior ISA is a very attractive option. Money held in a Junior ISA is locked in until the child reaches 18, after which the child can access the funds or it can be converted into an adult ISA and continue to enjoy the same tax advantages – returns are free from Income Tax and Capital Gains Tax.

It is possible to invest in a pension on behalf of anyone from the birth. These contributions will benefit from tax relief at 20% meaning that a contribution of £2,880 is made up to £3,600 after tax relief of £720 is added at source. 

HOW IT WORKS

Whether it’s starting an education fund for your children or giving grandchildren a head-start on the property ladder, our advisers help determine the best method for you and your family, in the most tax-efficient way. We can show you ways to invest ethically, to help improve the world by supporting companies developing renewable energy or recycling, or in companies that treat their employees fairly and support local communities. Our advisers sit down with you and build a tailored plan to set out how you can invest in a child’s future, in an area that is important to you.

The concepts and appropriateness of using gifts and trusts* are best understood in the context of your own personal circumstances. If you would like to understand more about how they can help with your own estate planning needs, please do not hesitate to contact us. 

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. 

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances. 

*Trusts are not regulated by the Financial Conduct Authority. 

Protection Planning

Helping loved ones onto the property ladder

The difficulties facing younger people joining the ranks of homeownership are well-reported, with renting often now stretching well into one’s thirties and beyond. Consequently, an increasing number of parents and grandparents are stepping in to help children onto the housing ladder. 

Whilst there are a small number of lenders that provide 100% mortgages, a first-time buyer will usually require a deposit of between 5%-20%.  It often also follows that the better the deposit, the more attractive the loan rate is.  It is therefore not unusual that parental help is required especially for first time buyers. 

When money is provided by friends or relatives, the help must normally be seen as a gift rather than a loan, if mortgage underwriting criteria is not going to be breeched.  Where a house purchase is made in multiple names, an additional worry may arise when a parent is being asked for financial help as to what happens if the purchasers fall out. The good news is that money given towards the purchase can be protected with appropriate planning. 

Parental assets can be utilised by way of additional security for a loan to a son or daughter. The usual practice is that the ‘additional’ security is pledged for a limited but fixed time period and gives the lender the comfort required in respect of first-time buyers or higher loan to value mortgages. 

Providing a parental guarantee. This can be particularly helpful where there is no liquid capital available but the guarantor has ample income or security that can be pledged.

Joint mortgage application: parents can choose to purchase a property with their children by taking out a joint mortgage. This could enable your child to buy a bigger or more expensive home than they would otherwise be able to afford on their own

HOW IT WORKS

Parents can play a crucial role in helping their children get a foot onto the property ladder through gifting, loans and providing security to mortgage providers. Many of these solutions have the dual advantage of helping with effective estate planning, however, caution and advice need to be taken when considering your options to ensure that no unexpected tax liabilities result from this act of generosity. Our advisers will sit down with you to outline the best options for you and your family. 

Want to find out more about how you can help loved ones onto the property ladder? 

Get in touch today to see how one of our advisers could help you! 

 

The home on which the mortgage is secured may be repossessed if payments are not kept up to date. 

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances. 

We recommend the guarantor gets legal advice to ensure they fully understand their obligations regarding the mortgage.

Income Protection

Income protection should be seen as one of the foundations of comprehensive financial planning. Having protection in place, in advance, provides reassurance that a replacement income would be paid in the event of time off work due to an accident or serious illness.

Income protection plans are designed to provide you with an income if you are unable to work for a prolonged time because of illness or injury. 

Plans will cover a specified number of years (usually until retirement) and the proceeds are paid until you reach the end of the termor can return to work. 

HOW IT WORKS

Clients can benefit from an income protection plan if they’re going to be out of work for an extended amount of time, due to an accident or illness. Your financial adviser will ensure the plan is tailored to your needs and objectives. We would recommend that if your circumstances change the income protection should be reviewed to ensure it remains suitable for your needs. 

Life Assurance

The two basic forms of life assurance come as either term assurance, which covers a specific amount of time, or whole of life assurance, which will provide a lump sum whenever death occurs, provided contributions have been maintained for the duration of the plan.  

Life insurance often called life cover or life assurance, provide financial support to loved ones if you die. 

Term plans are typically used when covering a financial liability or family needs that will reduce or end in the future, for example, repayment of a mortgage. 

Life insurers alone paid out £90 million in claims between 1 March and 31 May 2020 to help families cope with COVID-19 deaths (Association of British Insurers, August 2020)

HOW IT WORKS

Clients typically opt for life assurance cover to pay off a mortgage, protect families or provide an additional amount of money to their descendants upon their death.  An adviser will spend time with you to discuss the differences between policies and find the type of cover that best fits your needs.  

There are different types of life assurance policies, so it is worth receiving professional, expert guidance when making these impactful decisions.  An adviser can help by checking the structure of your policy, for example, if it’s set up in a Trust, one of the advantages is that, if suitably written, a trust can keep policy benefits outside of a life assured’s estate, so that inheritance tax is not payable on them.   

 

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.

Trusts are not regulated by the Financial Conduct Authority

Critical illness (life cover)

The future is undetermined, but critical illness cover can provide financial support if you’re in an accident or develop a major illness and suffer financial consequences as a result of taking time out of employment. Critical illness plans can provide a lump sum on a term or whole life basis.

No one knows what’s around the corner, but having a critical illness plan means you can prepare financially for the unexpected.

Critical illness cover will give you that peace of mind if you do not have savings to support you, should you unexpectedly fall ill and your earnings are reduced.

Critical illness cover may be the most significant factor of protection plans, as statistically there is a higher chance of suffering a serious illness than dying before we retire.

HOW IT WORKS

An adviser can help create a protection plan that is specifically tailored to meet the needs of you and your family, while also regularly adapting to changing circumstances. Many protection insurance contracts also include a range of extra benefits such as child’s critical illness, terminal illness and waiver of premium. These extras can help make a practical and emotional difference to clients lives. Our advisers can help to customize a protection plan to provide support and peace of mind to your family.

Corporate Services

Employer Benefits

Whether you’re setting up employer benefits for your staff or require assistance understanding the employee benefits you’ve been given by an employer, an adviser will offer tailored advice. Before making a recommendation, we spend time fully understanding your circumstances to determine a cost-effective strategy that can fit with your plans.

 

We can assist employers and employees by creating a suitable benefit plan for your company or show you how to maximise the one you’ve been provided with.

Employee benefit areas could include:

Online Total Reward Statements – helping your employees to understand the cost of the benefits you provide.

Flexible Benefits – allowing employees to create a benefits package that meets their own needs.

Salary Sacrifice Arrangements – facilitating employee access to tax efficient benefits while reducing employers’ National Insurance.

Private Medical Insurance – for your employees, health and wellbeing, reducing their absence from work while waiting for medical treatment.

You will have access to expert advice from a range of product providers, carefully selected and monitored by St. James’s Place. 

HOW IT WORKS

Advisers can look through your options and explore employee benefits such as private medical insurance or key person illness cover protection plans, in order to set up a flexible benefits strategy, with packages that meet the needs of each individual or workforce. A qualified adviser can uncover the best way to maximise employee benefits, while also setting up pension auto-enrolment schemes to use pro-rata, scaled pensions. Your adviser will also be able to talk you through salary sacrifice arrangements that create tax-efficient benefits while reducing National Insurance costs.  

 

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.

Employee Benefits

A clearly communicated benefits and remuneration strategy can help to recruit and retain high calibre employees. One of our advisers will spend time with you to learn about your business, before creating a cost-effective strategy to help everything run smoothly. 

Employee benefits provide you with the means to support your employees and their families financially and emotionally through a particularly difficult time.

Building the correct employee benefit package can help you to recruit and retain high-calibre employees. 

One of our advisers will help you to build a strategy that aligns with your business plans, while also providing you with advice from a range of product providers which are carefully selected and monitored by St. James’s Place.

HOW IT WORKS

Our advisers can offer you guidance on the following topics: 

Review of any existing pension schemes – Our advisers can provide guidance on your duties as an employer and help you to engage with your employees through pension scheme reviews. 

Online total reward statements – helping your employees to understand and appreciate the cost of the benefits you provide. 

Flexible benefits – allowing employees to create a benefits package that meets their individual needs. 

Salary sacrifice arrangements – facilitating employee access to tax-efficient benefits while reducing employers’ National Insurance costs at the same time. 

Private medical insurance – for your employee’s health and well-being, reducing their absence from work while waiting for medical treatment. 

Group Life, Income Protection and Critical Illness – These are important benefits that not only form a key part of a comprehensive employee benefits package but also enable you to manage your business more effectively. 

 

Get in touch today to see how one of our advisers could help you arrange employee benefits. 

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. 

The levels and bases of taxation and reliefs from taxation can change at any time Tax relief is dependent on individual circumstances. 

Auto-Enrolment (Pensions)

It is your responsibility as the corporate director or business owner to understand the pension provisions you need to make for your staff. We can help make everything clearer for you by helping with structuring your pension offering and educating your staff on company benefits. 

 

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

Employer contributions are a minimum of 3%, and member contributions are at least 5% (this includes 1% rate tax relief). This gives a total pension contribution of 8%.

New employees must be told about your autoenrolment scheme within 6 weeks of their start date, even if they are not yet eligible to join it. 

All employees aged between 22 and the state pension age who earn over £833 per month must be enrolled on the pension scheme. They cannot opt out before they have been added. 

HOW IT WORKS

To help you meet these obligations, we will take the time to understand the finer details of your business as well as your personal plans and ambitions for the future. We will carefully review your concerns and requirements regarding workplace pensions, to offer guidance that helps ensure your business is fully compliant and working within the Government rules. 

Whilst auto-enrolment is in place for many companies, as part of a regular review process it is important that employers continue to review the systems they have in place. It is equally important to have information available for employees so they can make their own educated decisions, as every employee aged between 16 – 74 has the right to opt in. 

 

There are countless solutions available to you and it is important to note that the most obvious one may not apply to you.  

 

The value of an investment with St. James’s Place will be directly linked to the performance of funds you select, and the value can therefore go down as well as up. You may get back less than you initially invested. 

Corporate Planning

Planning for the unexpected is often overlooked but could help secure a company’s future by protecting capital, livelihood, and family. Whether preparing in the event of a key employee falling ill or ensuring your shareholders have plans in place for beneficiaries who are not interested in taking the company forward, an adviser can help you shape the future, safeguarding security and prosperity no matter what comes your way. 

Corporate planning can protect you and your company from a range of risks by taking an in-depth look at your business, then working with you to ensure a tailored plan is put in place. 

When the time comes for you to move away from your business, we will help and guide you plan a smooth exit* strategy. 

We will work with you to reduce your tax bill, by optimising your company pension contributions, remuneration strategy and allowances. 

HOW IT WORKS

An adviser can set plans in motion to ensure your company is covered for all eventualities, working with you on Tax Mitigation, Exit* Strategies, Shareholding and Employee Insurances. 

Having the correct plans and insurances in place and regularly reviewing as your business changes can be a particularly onerous task. As part of our corporate service, we will undertake an in-depth review of your business, and then work with you to implement a tailored insurance programme to help protect your business from a wide range of risks. 

Effective planning is key to ensuring that sound management adds value to your business over several years and allows you to plan freely for your future. 

 

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.

*Exit Strategies may include the referral to a service that is separate and distinct to those offered by St. James’s Place.

 

Company Benefits

Company benefit schemes are a growing trend, with many companies offering dental cover, company cars or various other perks. Access to a financial adviser is still low in the UK, as only one in fourteen people (7%) has received paid-for financial advice within the last two years*. Providing your employees with a comprehensive handbook and access to financial advice can relieve stress and improve financial education.
*The UK Advice Gap 2021

A workforce that understands their finances is one that can take charge of them. 

Only 7% of UK adults have received financial advice within the last two years, but you can offer direct access to a vital service for your employees. 

Better financial capability leads to greater individual and social outcomes, giving individuals the power and confidence to make the most of their money and improve their lives. 

HOW IT WORKS

Financial education and wellbeing are high on many corporate agendas but with today’s fast-paced and demanding world, it often means that employees have little or no time to look out for their financial futures. With access to one of our highly qualified advisers, they can help your employees take control of their finances, reduce stress, and perform better at work. 

An adviser will work with you and your staff to create a complete plan for all parties, offering educational webinars and seminars, one-to-one meetings, in-office clinics, and comprehensible helpful fact sheets to help you and your staff.  

Additional Services

Corporate Investing

Corporate investing is a positive way to put your business’s surplus cash to good use. Instead of holding company money in the bank, you can put some of it into investments aiming to generate additional revenue. This gives your excess cash more potential to grow, rather than stay in a savings account. 

 

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested. An investment in equities does not provide the security of capital associated with a deposit account with a bank or building society.

Corporation tax is due to increase from 19% in 2022 to 25% in April 2023.  

Potential profits generated by your investment can be reinvested into your business.

By investing into employee pensions your company could receive corporation tax relief.

It has become more attractive for businesses to invest profits, due to a decrease in corporation tax. This now means business owners have been free to invest in lots of ways without incurring large tax bills.

As a result, potentially, more money can be reinvested into your business.

This gives your surplus cash more potential to grow, instead of stay in a savings account with a low-interest rate.

HOW IT WORKS

Corporate investing enables you to withdraw additional company money in a tax-efficient way when it is not intended to be used as income. 

Although a business owner can choose to pay themselves in dividends or through a salary, taking too much from the business account to simply sit in your bank account can result in a hefty tax bill. Conversely, allowing  profits to mount up in your business account means this money isn’t actively working for you or the company. 

An adviser will provide support on withdrawing money to place into carefully considered investments, subject to your company’s memorandum and articles of association (MAA). Sometimes, re-investing cash into your business or distributing it among shareholders won’t be appropriate, making corporate investments an attractive option to make money work harder for you. 

 

Get in touch today to see how one of our advisers could help you.  

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select, and the value can therefore go down as well as up. You may get back less than you initially invested. 

An investment in equities does not provide the security of capital associated with a deposit account with a bank or building society.

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.

Will Writing

A will lets you determine the future of your money, property and possessions after your death, which is vital to Inheritance Tax planning. It is important to ensure your will is well written and planned correctly, so we have access to a range of legal service providers, ready to assist.

If you fail to make a Will, you may see your assets divided according to intestacy rules.

A will needs to be formally witnessed and signed by two persons over 18 to make it legally valid.

Unmarried couples and couples who have not registered a civil partnership cannot inherit from each other unless there is a will, so the death of one partner may create serious financial problems for the remaining partner and family.

HOW IT WORKS

Most of us would prefer to pass our wealth on to our families, rather than HMRC. A carefully drafted Will can help your heirs appropriately plan for IHT, by taking advantage of tax reliefs and ensuring your assets go where you want them to.

It’s wise to regularly review your will, assessing its provisions and relevance to your changing circumstances and you should never assume that a Will, drawn up many years ago is still valid today.

As part of our protection service, we have access to several legal service providers who can arrange Wills to be drawn up on your behalf.

 

The writing of a Will involves the referral to a service that is separate and distinct to those offered by St. James’s Place.  

Wills are not regulated by the Financial Conduct Authority. 

Philanthropy

We aim to help you effectively and efficiently support the causes and communities you believe in.

St. James’s Place and the Charities Aid Foundations have dedicated experts who offer advisory services across all stages of your philanthropic journey, whether you are just starting out or are already experienced in this field.

Provide access to the Charities Aid Foundations (CAF) account and trust arrangements for charitable giving for UK-resident clients.

Facilitate tax-efficient giving for US citizens through the American Donor Fund.

Ensure that non-UK domiciled clients can gift offshore without their charitable gifting being affected by the remittance rules, via CAFs Jersey facility.

HOW IT WORKS

We believe your gifting experience should be rewarding and evolving to match pace with your ambition and generosity. From defining and refining your goals and developing an effective strategy, to measuring the impact of your giving, our insight will help translate ideas into tangible results.

We want to help you give easily while ensuring you receive the best advice. The St. James’s Place Philanthropy Service can provide access to the CAF account and trust arrangements for charitable giving for UK-resident clients. It can also facilitate tax-efficient giving for US citizens through the American Donor Fund.

The value of an investment with St. James’s Place will be directly linked to the performance of funds you select, and the value can therefore go down as well as up. You may get back less than you initially invested. 

Trusts are not regulated by the Financial Conduct Authority.

Vulnerable Clients

Our clients come from a range of backgrounds, locations, and age groups, and caring for them has always been our number one priority. This is why we support the PFS Vulnerability Taskforce, placing the care of our clients at the centre of everything we do.

We treat all clients fairly, regardless of their identity, age, gender, race, sexual orientation, disability, gender reassignment, religion or belief, and guard against making assumptions about individuals.

We seek to enable all members of our organisations to deal compassionately, empathetically.

We accept our heightened professional obligations towards clients in vulnerable circumstances; and the need for raised awareness, greater sensitivity, and additional technical competencies.

HOW IT WORKS

We recognise that our services often involve specialists, technical financial knowledge which places many clients, especially those in vulnerable circumstances, in a position of dependency that imposes a greater moral duty for us to act in their best interests.

Vulnerability can manifest itself in multiple forms and is often unique to the individual, long or short term, recurring or fluctuating or possibly completely hidden. As supporters of the taskforce, we have aligned our principles with the aims and objectives and openly commit to the Taskforce’s Charter, to create a more suitable and safe space for vulnerable people.

Banking and Mortgages

We offer access to a range of products and services which have been designed with you in mind. Need a mortgage? We can definitely help with that. We also have access to specialist day-to-day cash management and the opportunities available when it comes to other loans and borrowing.

Your home may be repossessed if you do not keep up repayments on your mortgage.

 

HOW IT WORKS

Sorting your finances is vital, but different for everybody. Advisers take the time to get to know you and your requirements, before helping you effectively manage your finances, find the right mortgage or look into additional lending. After discussing your specific situation and circumstances, we can introduce you to an appropriate provider. 

Whether you’re a first-time buyer, re-mortgaging, moving home or wishing to take advantage of a more competitive rate, you must have the right mortgage in place. 

If you’re interested in additional borrowing, we may be able to help you use your St. James’s Place and Rowan Dartington investments as security for a short-term loan. (Subject to eligibility) 

 

Your home may be repossessed if you do not keep up repayments on your mortgage. 

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested. An investment in equities does not provide the security of capital associated with a deposit account with a bank or building society.

Other Lending

From time to time, we all find ourselves in the position of needing fast access to additional funding.  If you’re looking to make some additional borrowing in the near future, we may be able to help you use your St. James’s Place and Rowan Dartington investments as security for a short-term loan (Subject to eligibility).

Short-term loans are a popular way of gaining access to funds, which — as you know — you will only need for a small period of time. People normally consider taking out the option of short-term loan in the following circumstances:

Bridging a residential property purchase

One-off tax payments

A luxury purchase – such as a yacht or a classic car

Home improvements

How it works for you

Flexible lending facilities may be made available to private individuals, trusts and corporate clients.

St. James’s Place and Rowan Dartington work with Metro Bank and Credit Suisse to make these lending facilities available to clients.  Both services provide short-term liquidity facilities secured against investment portfolios.

If the value of the investment falls in relation to the agreed loan facility, the loan may need to be repaid in full.  Metro Bank and Credit Suisse will take a charge over your investments and you will be unable to make any withdrawals from your charged investments without prior approval from the relevant bank. Rates and charges will apply.  Please get in touch for full details.

Private Client Service

We appreciate that many higher net worth clients have a different set of motivations and ambitions. These can be far-reaching and complex, but always unique to each individual, therefore advice needs to be personal, designed around your lifestyle. We can help you to shape your future plans and hope to build a lasting relationship with you. As a private client, your key relationship remains with us, but you also have exclusive access to a specialist St. James’s Place advice and servicing team, who work with us to provide an exceptional, high-quality service, where your priorities become our priorities.  To complement our expertise and extensive range of services, we also provide access to carefully selected specialist providers in financing, cash management, offshore investment planning, tax planning & legal services, philanthropy and protecting your assets & estate.

Maintaining your Lifestyle

Growing and preserving capital is likely to be central to supporting the lifestyle you enjoy; the comprehensive and diverse range of investment funds available, and managed using the St. James’s Place investment management approach, provides the wide choice of solutions with the aim of generating the capital growth or income you need to maintain your financial freedom.

St. James’s Place also have a choice of Growth and Income Portfolios with a range of investment objectives. Alternatively, for those seeking additional diversification or a more active role in their investment strategy, Rowan Dartington, the Discretionary Fund management and Stockbroking arm of St. James’s Place, offers a complementary, bespoke portfolio service.

 

We also offer access to a range of specialist alternative investments for clients who have particular estate and tax-planning requirements.

The value of an investment with St. James’s Place or Rowan Dartington may fall as well as rise. You may get back less than you invested.

Your Private Banking Services

We can open the door to an exclusive range of solutions specifically designed for clients with more sophisticated banking, lending and deposit requirements. We will work with the St. James’s Place Private Banking team to understand your current and future needs as well as your servicing preferences in order to create a solution that suits your individual circumstances. Through relationships with carefully-selected Banks, we can offer access to:

  • Private banking, instant access and term deposit facilities
  • An online cash management solution for both personal and corporate cash balances (for deposits in excess of £50,000)
  • Bespoke credit facilities, trustee and offshore accounts and foreign exchange specialists.

Specialist lending solutions may also allow you to secure borrowing against your eligible St. James’s Place investments, providing a short-term loan facility and avoiding the need to encash long-term investments when looking to cover immediate liquidity requirements.

 

Please note that where your eligible investments are used for this purpose, you will be unable to access your investments against which the lending is secured. If the loan is not repaid in time, the investments may be encashed.

Please note that the services provided by any Banks selected, will be separate and distinct to those offered by St. James’s Place.

Supporting your Business

Building a business can be immensely rewarding, but it can be hard to step away from the day-to-day issues. Our specialist advice can help you through every stage of the business life-cycle – start-up, growth, expansion and exit* – but most importantly, provide the peace of mind that to allow you to focus on the successful running of your business.

*Exit Strategies may include the referral to a service that is separate and distinct to those offered by St. James’s Place.

We can help you:

  • Build a tax-efficient remuneration strategy that closely matches your objectives
  • Undertake an in-depth review of your business and help implement a tailored insurance programme to protect your business from a wide range of risks
  • Manage short-term cash flow and deposit requirements and identify appropriate financing solutions
  • Prepare you and your business for exit – including achieving financial independence — or reduce the hours you spend running your business.

Business exit strategies planning may include the referral to services that are separate and distinct to those offered by St. James’s Place.

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