As Chartered Financial Planners, we provide a full range of specialist services to complement our core investment, pension and financial planning advice. This includes advice on tax-efficient investments to mitigate income tax, capital gains tax (CGT) and inheritance tax (IHT). Such investments include Enterprise Investment Schemes (EIS), Venture Capital Trusts (VCT) and investments eligible for Business Relief from IHT.
We advise many clients and their families on later life issues, including estate planning, pensions, investing cautiously for income and care fees planning. This will often involve working with attorneys acting under a Lasting Power of Attorney.
We advise clients on insurance protection to protect families and businesses from adverse life events. This includes life assurance, critical illness cover and income protection. For businesses, we advise on key person cover and shareholder or partnership protection.
Enterprise Investment Schemes (EIS), Seed Enterprise Investment Schemes (SEIS) and Venture Capital Trusts (VCT) were introduced by the government to offer a series of potentially valuable tax savings. They are designed to help smaller higher-risk trading companies raise finance by offering a range of tax reliefs to investors who purchase new shares in those companies.
Tax savings on offer include income tax and inheritance tax relief as well as CGT deferral in the case of EIS.
They are also a way of diversifying a portfolio to complement your wider financial planning and risk profile since investments can be made in areas not commonly available for quoted investments.
No matter how generous the tax relief, we attach great importance to our research and due diligence to assess the investment proposition in its own right.
Our expertise is to advise on both the investment and tax aspects of EIS/SEIS/VCTs.
EIS and VCT investments are high risk and can be difficult to encash or value. Past performance is not a guide to future returns and you can get less back than you invest. Tax legislation and tax reliefs are subject to change.
Our starting point is getting to know you and the key members of your family, whom you wish to benefit from your estate.
Central to any strategy is writing a Will and ensuring it is kept updated to reflect any changes in your personal situation. Your Will appoints your chosen executors to deal with your estate in accordance with your wishes.
Our next step is to ensure that appropriate use is made of any tax reliefs and exemptions. This may include small or annual gifts, or larger one-off gifts to children or other potential beneficiaries. You may also wish to make charitable gifts or undertake other philanthropy.
Whilst gifts may be appropriate, our advice would ensure that any gifts would not undermine your own financial security during your lifetime. We would also discuss with you the financial and personal circumstances of the beneficiaries, so as to check that you consider the timing is appropriate.
As far as further planning is concerned, we advise on investments using a number of different types of trusts, which can potentially save 100% IHT after 7 years. There are also some trust structures which provide for an immediate Inheritance Tax (IHT) discount.
The benefit of using a trust is that in addition to a potential IHT saving, you can ensure that income and capital is preserved and passed to chosen beneficiaries at the appropriate time. This level of control is not possible with lifetime gifts. Also, a trust can be invested in mainstream investments, so risk can be managed and tailored accordingly.
We also advise on investments which qualify for 100% Business Relief (BR), meaning that 100% IHT can potentially be saved after a 2-year holding period. To benefit from this valuable tax relief, investments must be in unquoted trading companies, which carry higher risks due to the smaller size of companies and no ready market to value or sell holdings. Our approach is to consider the investment risks and tailor to your individual circumstances. Typical investments, which may be listed on the Alternative Investment Market (AIM), are often in qualifying trading activities such as:
Businesses trading from freehold property (eg. Hotels, health clubs, nurseries, care homes)
Unquoted investments which qualify for Business Relief from Inheritance Tax are high risk and can be difficult to encash or value. Past performance is not a guide to future returns and you can get less back than you invest. Tax legislation and tax reliefs are subject to change.
Our advice in this area typically includes pensions and retirement income, estate planning and care fees planning. We may deal with clients directly, or often other family members acting under an Enduring or Lasting Power of Attorney in the case of incapacity.
Whilst pension annuities cannot generally be altered, any pension drawdown arrangements need to be kept under close review. As well as tailoring the investments and ongoing income, due consideration should be given to the potential death benefits. This is because on death pension assets do not pass by your will, so it is important to ensure that pension trustees have clear directions in respect of your wishes.
You may also have a portfolio of investments and ISAs, potentially focused on delivering retirement income. You may have questions in respect of investment risk or the sustainability of the portfolio or its income.
You may require guidance in respect to writing a Lasting Power of Attorney, so you can appoint one or more attorneys to act in the event of your incapacity.
You may wish to write or update your Will, so you can appoint your chosen executors to deal with your estate in accordance with your wishes. Whilst we advise on how best to structure your Lasting Power of Attorney and Will, we work with both solicitors and Will writers to undertake the drafting and execution of these important legal documents, so you benefit from an efficient professional service covering financial planning, tax and legal aspects.
You may seek guidance on how best to pass assets on to children or other potential beneficiaries and require advice in respect of Inheritance tax.
One of the biggest challenges facing society today is care in later life, whether at home or in a residential setting. The rules are complex in respect of how any state support is provided. We can guide you through the options and help ensure that you make best use of your savings in accordance with your wishes for care.
You or your family may struggle financially if you became seriously ill or died. The role of insurance is to protect you and your family in the event of either serious illness or death.
Income protection (also known as Permanent Health Insurance)
Income protection is a long-term insurance policy which pays out a tax-free income if you are unable to work due to ill health or an accident.
Critical Illness protection
Critical Illness protection pays out a tax-free lump sum on diagnosis of a specified critical illness during the policy term. This may be useful to repay a mortgage or make changes to your home, or make it possible to give up work.
Life Assurance
Life assurance is a long term insurance policy which pays out a lump sum on death during the policy term. It is generally appropriate either to cover a mortgage or other financial commitment, or to provide a lump sum to help support financially the upbringing of children.
Life assurance policies can also be written in trust to cover a potential Inheritance tax (IHT) liability. Whilst this does not reduce the IHT bill, it provides beneficiaries of an estate with the funds to pay the tax.
It is natural for taxpayers to wish to minimise their tax liabilities as far as possible through careful legitimate tax planning.
At Seabrook Clark, we believe in sensible prudent tax planning using tried and tested methods. After all, saving £1 tax is worth just as much as an extra £1 investment return.
Our advice is focused on ‘main-stream’ tax planning, not tax avoidance so our clients operate within both the letter and the spirit of tax legislation.
Our starting point with tax is to ensure that our clients are making maximum use of tax reliefs and exemptions, such as the Income Tax personal allowance, CGT annual exemption, and Inheritance Tax Nil Rate Band, as well as tax-free investments encouraged by the government using ISAs.
Pensions also benefit from a number of generous tax reliefs and generally form a central plank in a client’s tax planning strategy.
On the basis that clients have made appropriate use of tax reliefs and exemptions, ISAs and pensions, we also provide advice on specialist investments which give specific tax benefits.
We are pleased to provide a ‘one-stop’ tax compliance service for filing your annual Self-Assessment tax return in conjunction with a Chartered Accountant.
You may wish to buy a property, whether a main residence, second home or commercial property. You may have more complex mortgage needs if you own a portfolio of mortgaged properties, or require commercial or pension borrowing.
This may require mortgage finance.
Whilst we do not provide regulated mortgage advice, we are able to develop a comprehensive financial plan with you and where appropriate with your agreement, refer you to an experienced mortgage broker.
Where you have existing mortgages which require a review or re-structure, we can also discuss potential strategic options with you and refer you for regulated mortgage advice as appropriate.
We recognise that many clients choose to hold significant amounts of cash on deposit which they do not wish to invest. However, interest rates are very low and monitoring the best rates is time-consuming and opening and managing different accounts is tiresome.
Accordingly, we can provide you with an effective active solution to manage your cash. The aim is to ensure the security of the cash within FSCS limits, whilst balancing your need for access and liquidity with the highest possible interest rate and streamlined administration.
We deliver this cash management service via Insignis, who are experts in this field. Insignis is independent and FCA approved under the payment service regulations.
The Cash management service ensures that your cash is held securely and interest rates are actively monitored across the whole savings market. In addition, once the Cash management service is set up, accounts can be opened and closed without the need for new paperwork.
It is possible to hold cash in euros and dollars as well as sterling, where appropriate.
The Cash management service is available to individuals, as well as companies, trusts, charities or local authorities.
Seabrook Clark Ltd (Reg. No. 8281001) is authorised and regulated by the Financial Conduct Authority (593299).
Our registered address is: The Greenkeeper’s Cottage, Exeter Golf & Country Club, Topsham Road, Exeter, EX2 7AE.
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