Personal Finance | 14 March 2024

Case study: Helping a client make the most of an ISA’s tax benefits – each and every year

How we help clients plan for the future.

This case study is based on the various ways we support our clients and is intended to demonstrate how we help them. To ensure confidentiality, it does not represent a specific case.

 

The situation

Marc is a senior executive at a global company, working long hours for a high salary. While he considered himself financially ‘savvy’, he’d never got around to starting an ISA. 

 

THE ISSUE

Marc felt the amount he could put into an ISA each tax year – £20,000 – was relatively small compared to the size of his other investments and savings. But ignoring it meant he was missing out on the tax benefits. Any returns made on that £20,000 each year come free from UK income and capital gains tax, so an ISA could really help him get more from his money.

Our solution

Having discussed the potential benefits with Marc, we worked with him to open a Coutts-advised Stocks and Shares ISA, ensuring his investment matched the level of risk he wanted to take.

Coutts Financial Planner Chioma Patrick says, “Marc put in £20,000 straight away to make full use of that tax year’s ISA allowance. But we also put in place our auto-ISA function, which automatically adds £20,000 from his Coutts current account into his ISA each year. That’s good because it’s very much a ‘use it or lose it’ allowance.”

Chioma adds, “This was five years ago, and since then Marc’s built up a considerable amount in his ISA – every penny eligible for tax-efficient gains.

“Our clients are often time poor and don’t have the will or inclination to keep on top of their financial planning. I regularly meet clients who don’t make use of their tax reliefs and allowances, and help them ensure they’re not missed again. The amount they could save can be substantial.”

LEARN MORE ABOUT HOW COUTTS COULD SUPPORT YOUR FINANCIAL PLANNING

The value of investments can fall as well as rise and you may not get back the full amount you invest. Eligibility criteria, fees and charges apply. Tax reliefs referred to are those applied under current UK legislation, which may change. The availability and value of any tax relief will depend on your individual circumstances. This case study should not be taken as advice.

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