Wealth Management | AAG | Mayfair, London

Planning for the Tax Year-End

There is no shortcut to financial security for you and your family. And the route isn’t always easy. Uncertainty in the markets, about the economy, and government tax policy, can all present obstacles that slow your progress.

But by having a plan, and the discipline to keep taking steps over a number of years, you can get where you want to be. That focus includes taking advantage of the tax and investment planning opportunities before the end of the tax year…

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Your annual ISA allowance remains one of the simplest, most flexible and popular ways to invest for your future and shelter money from Income Tax and Capital Gains Tax. Yet despite the tax-saving benefits on offer;

1. Only one in five ISA subscribers maximise their allowance¹.

2. Nearly three quarters of subscriptions are still deposited in Cash ISAs – £39.8 billion in the last tax year² – despite the near record-low returns on offer.

What is your annual ISA allowance?

The maximum you can save into an ISA in this tax year is £20,000, but any unused allowance is lost after 5 April. It’s a valuable opportunity to grow your wealth and protect it from the twin threats of taxation and inflation. But to make the most of it, you need to invest it wisely.

As the end of the tax year approaches, individuals yet to use their ISA allowance need to ensure that they are maximising this valuable opportunity. Those with accumulated ISA savings should also check whether their money could be working harder for them.

Try our ISA Calculator to see how much your ISA could be worth.


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 favourable tax treatment given to ISAs may not be maintained in the future, as they are subject to changes in legislation.

¹, ² HMRC, ‘Individual Savings Accounts (ISA) statistics’, September 2018.

Retirement Planning

Due to greater simplicity, choice and flexibility, pensions are a more attractive option for retirement savers than ever before. Moreover, the incentives available to pension savers are hard to beat.

For every 80p you pay into a pension plan, the government adds 20p, boosting it to a total contribution of £1. However, higher and additional rate taxpayers could be eligible to claim extra tax relief through their annual tax return, meaning that a £1 pension contribution can effectively cost them just 60p and 55p respectively.

These tax breaks are so advantageous that they will inevitably remain under government scrutiny; and for this reason, change cannot be ruled out in the future. You should therefore consider taking advantage of the existing reliefs by making full use of your annual allowance.

What is the pension annual allowance?

The annual allowance is the amount you can contribute in order to benefit from tax relief, that you can make in a tax year. By maximising this year’s allowance and carrying forward any unclaimed allowances from the three previous tax years, you could benefit from current rates of tax relief and potentially enjoy a higher income when you stop work.

Please note that although 25% of the pension value can be taken without a tax charge, the remaining income drawn at the individual’s marginal rate of tax.

Knowing you’ll be all set to meet your basic needs – with enough left over to let you comfortably do the things you look forward to in retirement – is something well worth striving for.

Nevertheless, roughly a third of UK workers either aren’t saving at all for their retirement, or they aren’t saving nearly enough to give them the standard of living they hope for. ¹ If you fall into either of these categories you have three choices: adjust your income expectations, start saving more, or retire later.

Try our Retirement Planning Calculator to see if you are on track to meet your goals.


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.


¹ Money Advice Service, 2018

Tax and estate planning

Inheritance Tax (IHT) is widely viewed as unfair, and even the chancellor agrees it’s complex, but only effective and early planning can minimise its impact on your estate.

A record £5.2 billion in IHT was collected in the 2017/18 tax year, and the Office for Budget Responsibility forecasts that receipts will increase to £6.4 billion by 2022/23.¹ Yet IHT is often referred to as a ‘voluntary tax’; the fact is that ignorance and inertia are largely to blame for wealth ending up in the hands of the taxman rather than the family.

The good news is there are plenty of things you can do to keep any potential IHT bill to a minimum, although with the end of the tax year looming, you only have a short window of opportunity to use allowances that might otherwise be lost.

Try our Inheritance Tax Calculator to calculate how much IHT might be due.


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

¹ ‘HMRC Tax & NIC Receipts’, November 2018

AAG Wealth Management is a holistic Wealth Management group and provider of a wide range of complementary services. The wealth management advice, for both individuals and corporates, is provided by AAG Wealth Management, a Senior Partner Practice of St. James’s Place Wealth Management. Other services offered by AAG fall outside of wealth management advice and are separate and distinct to the services offered by St. James’s Place. They are not covered by the St. James’s Place guarantee*, which is solely reserved for wealth management advice provided by representatives of AAG Wealth Management.

*St. James’s Place guarantees the suitability of the advice given by members of the St. James’s Place Partnership when recommending any of the wealth management products and services available from companies in the group, more details of which are set out on the Group’s website.

AAG Wealth Management is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s  website www.sjp.co.uk/products. The `St. James’s Place Partnership’ and the titles `Partner’ and `Partner Practice’ are marketing terms used to describe St. James’s Place representatives.

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