Easing the tax burden

If you’re a senior executive with an income above £125,140, you’ll have to share anything above this almost equally with HMRC. It’s called income tax liability, meaning you pay 45% income tax and 2% National Insurance, adding up to a 47% deduction.

If you have an adjusted net income above £100,000, erosion of your personal allowance (for the 2023/24 tax year) means you’ll pay tax at an effective rate of 60% on anything between £100,000 and £125,140. So it’s important to give careful consideration to how you can beat the 60% tax trap.

When reviewing your finances, we will determine whether you are maximising your ISA allowance and using all your Capital Gains Tax allowance. With careful planning and analysis, you can lead the lifestyle you plan to, and look forward to a comfortable retirement.

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 initially invested.

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

Got a question?

If you would like to speak to us about a particular issue or wish to find out more about the specialist advice services we offer for business owners, please get in touch.