Peace of mind for private clients

4 minutes

read

|

Private Client Services at Hawsons give clients the opportunity to receive an all-round service under one roof. This is achieved through the firm’s team of tax and financial planning experts working together to provide a service that is fully tailored to individual needs.

Aaron Hemmington, Tax Partner at Hawsons, said:

“The tax system and economic landscape is constantly changing, and it is important to advise clients of the implications and opportunities arising from such changes in a timely and tailored manner. This is why our Private Client Services offering is driven by our tax and wealth management specialists who work together in order to provide a holistic approach to advising clients.”

That expertise allows Hawsons to deal with a large client base with varied needs. Aaron recently dealt with a client requiring university fees planning. He explained:

“Our client is a high-net-worth individual who receives a substantial amount of dividends from his trading company. He has two children who attend university, and he was having to draw additional dividend income to pay for their university fees. However, this income was suffering tax at the additional rate of 38.1%.

“We advised him to set up a discretionary trust for the benefit of his children and gift some shares in the company to the trust. This gift was free of CGT due to hold-over relief and free of lifetime IHT due to 100% business property relief.

“The company then paid dividends to the trust and the income was subsequently distributed to the beneficiaries to fund university fees. The trust was subject to income tax on the dividends, but the children were deemed to receive the distributions net of a tax credit in respect of the tax paid by the trust on the underlying income. As the children are non-taxpayers, they were able to reclaim all of the tax credit from HMRC. This has resulted in significant annual tax savings for our client.”

Director at Hawsons Wealth Management (HWM), Natasha Fathers, added:

“In my time at HWM I have always felt a sense of accomplishment from the work we do. The services we provide are bespoke, namely the Private Client Services, offering not only a wide range of services but support with much more complex needs, achieved by Hawsons and HWM working hand in hand in order to benefit our mutual clients.”

Natasha has recently helped a client who had received a significant personal injury compensation payment. They also had a professional deputy overseeing their personal affairs.

The key requirement was to fund their care and lifeplan, as they weren’t likely to receive any significant income or capital receipts in the future. Due to the size of the compensation the potential for growth was significant, therefore the tax implications needed to be considered.

Natasha established a range of tax-efficient investment wrappers. The client is now able to make flexible withdrawals to fund their lifestyle in a tax-efficient manner. They were able to earn circa £50,000 per annum without an immediate tax liability. Furthermore, their underlying investments gave greater growth potential to replace some of the funds withdrawn.

Other areas Hawsons has advised on recently include:

Assisting trustees with the establishment of trusts and recommending a suitable investment strategy
Expert witness work which includes advising on and producing documentation to assist in claims against estates under the Inheritance (Provision for Family & Dependants) Act 1975.
Working closely with deputies/attorneys in relation to individuals who lack the capacity to deal with their own finances. Making sure the correct decisions are made at the correct times to provide that stability and support for the individual and families for the remainder of their lives.
Assisting individuals/trustees with investment strategies for personal injury compensation.
Assisting tax advisors with tax-efficient profit extraction for key business stakeholders.
Advising individuals/deputies/attorneys with long-term care funding advice

Hawsons continue to strive to give clients a hands-on approach, a direct result of getting to know their clients and their personal circumstances. Compliant with regulations and current legislation, Hawsons will always give the right advice. The Private Client offerings cover a range of services from dealing with personal tax matters to advising with investment strategies. In some cases, Hawsons work closely with other specialists and professionals to build a team for mutual clients.

If you would like to know more, please contact:

Aaron Hemmington, Tax Partner at Hawsons on 01604 645600 or email aaronhemmington@hawsons.co.uk