FAQs

1. What are wealth managers?

Wealth managers can provide advice on where to invest your money and/or take instructions from you on where you would like your money invested. Investments vary in risk and return depending on whether they are held as cash deposits, equities (stocks and shares), government and corporate bonds or as a variety of more alternative investments. Wealth managers are professional companies, qualified for managing private individuals’ wealth. In the UK they must be regulated by the Financial Conduct Authority.


2. What is the lifetime allowance?

When saving for a pension, you need to be aware that there is a limit on the overall value of any eventual pay-outs, and this is known as the lifetime allowance.  The lifetime allowance includes lump sums and retirement income.   It applies to the total of all pension schemes you may have belonged to but is exclusive of the State Pension.  If the lifetime allowance is exceeded, you would be liable for an extra tax charge.  

The lifetime allowance as at 5 April 2016 is £1 million.  As this was reduced from the previous threshold of £1.25 million, those exceeding the new limit prior to the change may be able to apply for protection through HMRC, but must do so by April 2017.  Once you start drawing pension payments, you will receive notification of the balance on your lifetime allowance and whether any tax is incurred.


3. What are the recent changes to pensions?

So-called 'pension freedoms' came into force in April 2015, whereby people aged 55 or over could access their pension pot early, with no obligation to buy an annuity.  On the face of it, this gives more liberty to choose how you manage your finances.  However, income drawdown from pension providers may involve charges and minimum withdrawals, which may affect individual tax situations; these details must be checked with your pension provider.  

The first 25% of pension pots may be taken tax free but there is still a potential tax trap faced by those cashing in.  If you cash in large amounts from your pension pot, HMRC will want to know if this extra income pushes you into a higher tax bracket. 

The annual allowance - the maximum you can save into a pension in a year, taking into account your own plus your employer's contributions - is £40,000, but from April 2016 a tapered allowance came into effect for high earners.  The allowance reduces by £1 for every £2 that income exceeds £150,000, up to a maximum reduction of £30,000. 

About Us

We are a firm of highly experienced independent financial advisors based in Leamington Spa. Our core values are simple - integrity and professionalism - and have seen our business grow mainly through customer referrals and reputation.

Latest News

Get in Touch

Beaufort Wealth Management Ltd,
4 Jephson Court,
Tancred Close
Leamington Spa,
Warks,
CV31 3RZ
01926 460156

Beaufort Wealth Management Limited is an appointed representative of The Tavistock Partnership Ltd, which is authorised and regulated by the Financial Conduct Authority. FCA No: 469862 Decisions should not be taken based solely on the content of the website and individual advice should be sought first. Regulations, levels and bases of taxation are subject to change and individual circumstances. The information contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. No responsibility is accepted for the accuracy or content of external websites.

Content