End of Year Count Down

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Financial Planner, Sarah Lord summarises the best personal investment options

The end of the financial tax year on 5th April brings its own worries for small businesses coping with submitting correct financial reports to the Inland Revenue for yet another year of activity but a seminar hosted by Killik & Co, the friendly advisory stockbrokers and wealth management firm with offices throughout London, offered mainly good news about investment opportunities for savers who’ve managed to accumulate spare cash after all business is done.

At their grand offices in Grosvenor Street in Mayfair, presenter Sarah Lord, the Managing Director of Killik Chartered Financial Planners, gave a round-up of the best personal investment options for 2014. Here is a summary of her best tips:

ISA allowance – It’s a no brainer! All UK residents can invest up to £11,520 until 5th April 2014 into an ISA (independent savings account) with the allowance increasing to £11,880 from 6th April 2014. As the famous saying goes, ‘use it or lose it’ because it’s virtually TAX FREE with no capital gains tax, no income tax on withdrawals and access at any time. Be aware, however, that a 20% tax is levied on interest paid on cash holdings in ISAs in stocks and shares.

Junior ISA – Why not set up an account for your kids to save up for those big events like attending university, purchasing a car or making a down payment on their first mortgage with a Junior ISA allowance for children up to 18 years? Maximum investment is £3,720 until 5th April 2014 increasing to £3, 840 from April 6th 2014. The investments can be in cash and stocks and shares, however, please take note that your child has access to the funds on reaching 18 years and thereafter they are free to do what they want with the money.

Maximise Pension Allowance – We all have to get round to it, so let’s do it sooner rather than later and benefit from gaining tax relief on personal and employer contributions by maximising the gross pension contributions we pay a year. The annual allowance is £50,000 gross per annum reducing to £40,000 from 6th April. Any unused relief can be carried forward from previous 3 years but you have to be a member of a pension plan to be able to benefit from the carry forward facility.

Of course, many more tips were offered during the illuminating seminar by Sarah Lord but if you fulfil just these three for starters, you will be well on your way to financial well-being in 2014.

For more on advice on investment opportunities see www.killik.com





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