How to maximise your customers’ tax allowances

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A quick overview of the 3 ways the ISA allowance could prove important for them.

By choosing to recommend Skipton Building Society to your customers, you could play an important role in creating a brighter financial future for them – something we’re sure they’ll always be grateful for.

First up, did you know that the average household will pay over £1.1m in tax in their lifetime? According to a study by the TaxPayers’ Allowance.

It’s a thought we’re sure nobody likes the idea of – particularly when your customers have worked hard for the wealth they have.

Fortunately, there are ways your customers could maximise the tax allowances available to them – the most obvious of these is to make use of their ISA allowance

Here’s why their ISA allowance could prove so important: 

  1. It could help them combat rising inflation

As you’re probably well aware yourself, everything is that little bit more expensive at the moment. The cost of living is at a 10-year high.

If your customers’ money is really going to gain in value, it needs to grow faster than the rate of inflation, otherwise it won’t stretch as far when it comes to buying and doing the things they want – this is where investing over the long-term could come in really useful.

For the current tax year, they can put up to £20,000 into an ISA – meaning a stocks and shares ISA could be a great tax-efficient option for your customers. Not only a chance of beating inflation, it could also prove really important in helping them to achieve their long-term goals.

Of course, your customers will need to be willing to take some risk with their money and be open to investing for at least five years.

  1. Their investment gains are exempt from capital gains tax

For investments outside an ISA, gains above £12,300 are typically subject to 10% or 20% capital gains tax (CGT) – depending on their individual tax rate.

By choosing to invest through an ISA, any gains are exempt from CGT – meaning even more of your customers’ money could go towards their futures.

  1. It could help protect against tax hikes

All dividend income inside an ISA remains tax free. Whereas outside of an ISA, tax is paid on any dividends that exceed the £2,000 annual allowance.

There’s also no income tax due on any growth or dividends received within an ISA, making them especially advantageous for higher or additional-rate taxpayers. And it could help to ease some of the blow from the National Insurance hike set to come into force in April. Workers will pay 1.25p more in the pound – so someone with an annual wage of £50,000 will pay an extra £464 a year.

With the rate of dividend tax set to increase by 1.25% from April, and the National Insurance hike too, ISAs could prove more important than ever when it comes to growing your customers’ wealth.

Doing more for your customers

Encouraging your customers to seek some advice on using their ISA allowance could make all the difference. We could help them invest in a way that suits their individual needs, while ensuring they’re taking advantage of all their tax allowances and exemptions.

A quick overview of why your customers should choose Skipton

  • Our no pressure promise – you can be confident of recommending Skipton to your customers knowing they won’t get a hard sell.
  • No upfront fees – there are no initial fees for them to pay to hear our advice. A charge is only payable if they decide to act.
  • Personalised recommendations – we offer a range of solutions for a range of different people, needs and circumstances. We’ll take time to get to know your customers and work hard to build long-lasting relationships.
  • We’re experienced – we’ve offered a financial advice service for over 30 years, and we’re trusted with £3.7 billion of our customers’ money.
  • Accessible advice – we offer appointments in branch, over the phone or via video link.

Don’t forget, recommending Skipton to your customers could boost your business revenues

If a customer you recommend decides to act on our advice, you’ll receive 25% of the initial charge they pay. Referring customers to us could prove a useful way of supporting business revenues, as well as enhancing your reputation by providing more value to your customers. We offer financial advice to anyone with £20,000 or more to invest, or to people who are able to make monthly contributions of £500 or more.

Stock market-based investments are not like bank and building society savings accounts as your customer’s capital is at risk and they may get back less than they invested. The value of your customer’s investments and any income from them may fall as well as rise. Tax treatment of investments depend on individual circumstances and may change in the future.

This communication is intended for Introducers.

Get in touch

If you want further information about Skipton Financial Advice and becoming an Introducer, don’t hesitate to get in touch today.

Contact:  James Webb, National Accounts Lead for Skipton Building Society

Email:  [email protected]

Tel:  07800770353

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The Society of Will Writers is a non-profit making self-regulatory organisation whose primary objectives are the advancement, education and ethical standards within the will writing profession.

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