Ward Goodman https://www.wardgoodman.co.uk Tue, 15 Jul 2025 15:41:17 +0000 en-GB hourly 1 https://wordpress.org/?v=6.8.2 https://www.wardgoodman.co.uk/wp-content/uploads/2022/11/cropped-fav-150x150.png Ward Goodman https://www.wardgoodman.co.uk 32 32 Is Your Business Protected If Something Happens to You? https://www.wardgoodman.co.uk/news/business-estate-planning-guide/ https://www.wardgoodman.co.uk/news/business-estate-planning-guide/#respond Tue, 15 Jul 2025 15:37:28 +0000 https://www.wardgoodman.co.uk/?p=22723 Written by Daniel Cotter

Ward Goodman
July 15, 2025

Running a business means juggling countless responsibilities. But there’s one area too many business owners leave on the back burner: what happens to your business if you’re suddenly not around to run it?

Estate planning isn’t just for retirees or the ultra-wealthy. It’s a vital step for anyone with a business to protect. If your company is a key part of your family’s income, your team’s livelihood, or your long-term legacy, having a proper plan in place could make all the difference.

What Happens If You Die or Become Incapacitated?

Without a plan, the future of your business can quickly become uncertain. If you were to pass away or lose mental capacity, your business might face:

  • Frozen accounts or legal delays due to lack of legal authority. If no one is legally authorised to act on your behalf, banks may freeze access to business funds and other assets, causing immediate operational issues.
  • Unintended ownership passing to family members with no experience or interest in the business. This could put your company in the hands of someone unable or unwilling to manage it.
  • Disruption to operations, damaging your business’s value and reputation. Without clear leadership, staff may feel uncertain, clients may lose trust, and the business may stall.
  • Internal conflict or forced sales, especially in family-run or closely held businesses. Disagreements over ownership or future direction can lead to legal disputes or the need to sell the business under pressure.

There’s no doubt that it is a difficult topic to confront, but planning now prevents even tougher conversations later.

Wills, LPAs and Business-Specific Protections

When it comes to protecting your business from the unknown, a basic Will alone isn’t enough. A well-rounded estate plan should address both your personal and business interests. Here are some of the key elements that every business owner should consider:

  • A professionally written Will that clearly outlines what happens to your business shares and assets.
  • A Lasting Power of Attorney (LPA) that appoints someone to step in and make financial decisions on your behalf if you’re unable to.
  • Business LPAs, specifically naming someone with experience to manage operations during periods of incapacity.
  • Trusts, which can keep your business running while protecting family interests, especially useful when not all family members are involved in day-to-day management.

Avoiding Forced Sales: Cross-Option Agreements

A cross-option agreement is a legal arrangement between business co-owners that sets out what happens to a person’s shares if they die. It gives the surviving shareholders the option to buy the deceased’s shares – and the deceased’s estate the option to sell them – without forcing either party. This ensures that control stays with the remaining business owners while the family receives fair value.

If you co-own your business, a cross-option agreement will ensure that:

  • Surviving shareholders have the option to buy the deceased’s shares.
  • Family members receive the value of the shares without having to take on a business they’re not equipped to manage.

These agreements are usually backed by life insurance policies to provide the necessary funds for a smooth transition. Without them, surviving partners may not be able to afford the shares – or worse, control could pass to unintended parties.

Balancing Family Needs and Business Continuity

What if one child is involved in the business, but another isn’t? What if your spouse depends on the income, but doesn’t want to take on operational duties?

Estate planning allows you to:

  • Ring-fence ownership and control for those best equipped to run the business.
  • Provide financial support to others through trusts or income distributions.
  • Avoid family conflict by setting clear intentions in advance.

The key here is fairness, not necessarily equal distribution. With expert guidance, you can structure your plan to support your family while preserving the business’s health.

Protecting the People Who Depend on You

Another important consideration is Key Person Insurance. This type of policy provides a financial safety net if a vital team member becomes critically ill or passes away. For many businesses, losing a founder or senior decision-maker could mean a loss of income, client relationships, or operational knowledge. Key Person Insurance ensures the business has the funds to cope, whether that means hiring a replacement, covering lost profits, or easing cash flow.

We’ve written more about how it works and who should consider it in our recent article: Key Person Insurance Explained.

Your team, your clients, and your co-owners rely on the business continuing to function. Planning ahead ensures continuity not just for your family, but for your wider circle of stakeholders.

A few simple steps now can spare your loved ones unnecessary stress and legal wrangling down the line. And just as importantly, it gives you complete peace of mind today.

Plan for the Future with Ward Goodman

At Ward Goodman, we understand the unique pressures that business owners face. Our estate planning experts work closely with you to build a plan that protects your business, supports your family, and reflects your wishes.

If you’re ready to safeguard your legacy, get in touch with our team for a confidential conversation about how we can help you plan for the unexpected and protect what matters most to you.

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Who Will Inherit Your Pension? Why It’s Crucial to Check https://www.wardgoodman.co.uk/news/who-will-inherit-your-pension/ Mon, 14 Jul 2025 09:07:42 +0000 https://www.wardgoodman.co.uk/?p=22714 Written by Adrian Seager

Ward Goodman
July 14, 2025

When it comes to retirement planning, many people focus on how much they’ll need to live comfortably in later life. But there’s another critical question that often gets overlooked: what happens to your pension savings when you die?

Recent research found that one in six people in the UK with a partner don’t know who will inherit their pension if they pass away before accessing it [1]. Among the Silent Generation (those aged 79 and older), that figure rises to nearly one in five [1]. This lack of clarity can cause unnecessary financial and emotional complications for loved ones.

Why your pension beneficiary matters

Unlike other assets, pensions are not usually covered by your Will. Instead, they rely on a nomination of beneficiary – a separate instruction given directly to your pension provider. While not legally binding, pension providers strongly consider your nomination when deciding how to distribute your pension. Yet despite the simplicity of this process, many people forget to keep their nomination up to date.

Surprisingly:

  • 3% of individuals believe their pension is still nominated to an ex-partner
  • 65% have correctly nominated their current spouse or partner
  • Others have chosen children, charities, or close friends

 

If your circumstances change and you don’t update the details, your pension could end up in the wrong hands – potentially causing avoidable disputes or delays.

Relationship status plays a big role

If you’re unmarried but living with a partner, the risk is even higher. Research shows that 25% of people in this situation don’t know who their pension is currently nominated to [1]. A quarter of people in this situation are unsure who their pension is currently nominated to [1]. Because unmarried partners are not automatically recognised as next of kin, an outdated or missing nomination could mean they receive nothing.

Younger adults are also at risk

Nearly a third of 16 to 24-year-olds admitted they don’t know who would receive their pension [1]. This is often due to workplace pension auto-enrolment, where nominations may not be discussed at all. But no matter your age, reviewing your nominations is a good habit to get into, especially after major life events such as marriage, divorce, having children or changing jobs.

What happens if you don’t nominate anyone?

If your pension provider doesn’t have a clear instruction, they will usually use their discretion to decide where the funds should go. While they may try to identify the most appropriate recipient, this process can take time and place additional strain on your loved ones during an already difficult period.

It’s also worth noting the tax advantages pensions can offer. If you die before the age of 75, your beneficiaries can typically receive the pension tax-free. After 75, the money may still be passed on, but taxed at the recipient’s marginal rate. Without a nomination in place, this valuable opportunity could be lost.

What’s the difference between a beneficiary and a nominee?

When planning your pension inheritance, it’s helpful to understand the terms often used interchangeably – beneficiary and nominee.

  • A nominee is the person you designate to receive your pension benefits in the event of your death. This is typically done by completing a nomination form with your pension provider.
  • A beneficiary is the person or entity who actually receives the pension funds. While this often matches the nominee, your pension provider has the final say based on the circumstances and available evidence.

 

Keeping your nominee information up to date increases the likelihood that your intended beneficiary will receive your pension without unnecessary delays.

How to check and update your pension beneficiaries

Fortunately, updating your nomination is usually quick and straightforward. Most pension providers let you log in online to review or amend your details, or you can request a paper form. A few minutes of admin now could save your family months of stress later.

Key reminders:

  • Review your nominations annually or after any major life event
  • Make sure each pension pot is updated individually
  • Don’t assume your Will overrides your pension – it doesn’t

Take control of your pension legacy

Your pension may be one of the most valuable assets you own. Ensuring it goes to the right person is a key part of your financial planning.

If you’re unsure who’s nominated, need guidance or want to make sure your pensions reflect your current wishes – the team at Ward Goodman is here to help.

Contact us today to speak with our expert team and protect your family’s financial future.

For more details on how we can help with retirement and pension planning, visit our Pension & Retirement Planning page.

Source data:

[1] The research was conducted by Censuswide among a sample of 2,000 general consumers who have a partner, whether married, in a relationship or a civil partnership. The data was collected between 07/02/25 and 10/02/25.

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What Would Happen If Your Most Important Team Member Left Tomorrow? https://www.wardgoodman.co.uk/news/key-person-insurance-explained/ https://www.wardgoodman.co.uk/news/key-person-insurance-explained/#respond Fri, 20 Jun 2025 14:52:37 +0000 https://www.wardgoodman.co.uk/?p=22613 Written by Gareth Simon

Ward Goodman
June 20, 2025

Could your business survive the unexpected loss of its most vital team member? For many, the answer is a sobering no. But with the right planning, your business can remain resilient in the face of unforeseen challenges.

Running a business means wearing many hats, but have you ever stopped to think about what would happen if a vital person in your company couldn’t work tomorrow? Losing a key team member through illness, disability, or death can cause far greater disruption than you might expect – impacting not just finances, but also morale, client relationships, and crucial projects. With the right protection, however, you can plan ahead and stay resilient.

What is Key Person Insurance?

Key person insurance is a financial safeguard designed to protect your business if a crucial employee or owner dies or is diagnosed with a serious illness. This protection pays a lump sum directly to your business, not the individual’s family, helping to cover lost income, repay loans linked to that individual, and bridge the gap while you find and train a suitable replacement. It applies to all kinds of businesses – sole traders, partnerships, limited companies – and can be tailored to your specific structure.

Why is it Important? The Hidden Risks of Losing a Key Person

Your people are your greatest asset. They bring in new business, maintain key relationships, drive growth, and often hold unique skills or institutional knowledge. Without key person insurance, an unexpected loss could mean:

  • Immediate Business Closure: More than one in four (26%) UK SMEs report they would be forced to close their doors immediately if a key person died or became critically ill. [1]
  • Short-Term Business Collapse: Nearly two-thirds (59%) of UK SMEs indicate they would cease trading within 12 months following the loss of a key individual. [2]
  • Risk to Reputation and Loss of Customer Trust: Projects may stall, key client contacts disappear, leading to a perception of disorganisation and potential client exodus.
  • Impact on Team Morale and Productivity: The remaining team can become demotivated, stressed, and less productive without their key colleague.
  • Substantial Recruitment, Training, and Onboarding Costs: Finding the right replacement takes significant time and financial investment.

What Does it Cover?

Key person insurance policies are typically triggered by specific events, ensuring your business receives a payout when it’s most needed:

  • Death: The passing of the insured key person.
  • Critical Illness: Diagnosis of a specified severe illness (e.g., cancer, heart attack, stroke).
  • Long-Term Disability: A disability that permanently prevents the key person from performing their role.

How Does it Work?

Your business takes out the policy and pays the premiums. If the insured person becomes critically ill or dies, the insurer pays out an agreed lump sum to the business (the beneficiary). This money can then be strategically used to:

  • Hire temporary or permanent replacements.
  • Cover lost profit and ongoing operational expenses.
  • Pay off business loans or overdrafts that were dependent on that individual’s contribution or personal guarantee.
  • Provide an ex-gratia payment or death-in-service benefit to the family of the key person, if the business chooses to do so.

Steps to Protect Your Business

  1. Identify Key People: Who is truly vital to the day-to-day running and financial health of your company? Think beyond just directors. Typical examples include senior managers, top salespeople, specialists with unique skills, or operational linchpins.
  2. Calculate the Right Level of Cover: This isn’t a one-size-fits-all. Consider their contribution to annual profits, the estimated time and cost to find and train a replacement, any specific projects or contracts they manage, and any loans for which they are a guarantor.
  3. Choose Suitable Cover: Options include:
    • Life Insurance: Pays out only upon the death of the key person.
    • Critical Illness Cover: Pays out upon diagnosis of a specified critical illness.
    • Combined Policies: Offer cover for both death and critical illness.
    • Relevant Life Cover: A tax-efficient option for employees, providing death-in-service benefits. Premiums are generally treated as an allowable business expense for corporation tax, and the payout is typically free from income tax and inheritance tax for the recipient.
  4. Review Regularly: Your business is dynamic – your protection should be too. Review your policies each year or whenever you expand, take on new staff, secure significant new contracts, or enter new markets.

Real Example: Mitigating Disruption

Imagine a director who handles most supplier negotiations becomes seriously ill. Without key person insurance, the business could face immediate supply chain issues and significant financial strain. However, with a key person policy in place, a lump sum pays out, allowing co-directors to:

  • Hire temporary consultants with negotiation expertise.
  • Train another team member to take on the responsibilities.
  • Offset lost profits during the period of adaptation and transition.

 

This proactive step prevents project delays, retains key clients, and ensures the business can continue its growth trajectory even in challenging circumstances.

How Key Person Insurance Links to Wider Business Protection

Key person insurance is just one crucial piece of a robust business protection plan. It works seamlessly alongside other vital agreements to keep your business stable in unforeseen situations:

  • Shareholder Protection: Ensures that if a shareholder dies or becomes critically ill, the remaining shareholders can buy their shares, preventing them from falling into unwelcome hands and ensuring continuity of ownership.
  • Partnership Agreements: Outline what happens to the business in the event a partner dies or leaves, often including provisions for buying out their share.

 

By safeguarding your people, you’re safeguarding your entire company’s future.

Is Your Business Protected?

If losing a vital team member tomorrow would put your business at risk, now is the time to act. Ward Goodman’s experts can help you identify your key people, calculate your protection needs, and integrate key person cover into your wider succession and continuity planning.

Contact us today to secure your business’s future – and gain the ultimate peace of mind that your team, clients, and legacy are protected no matter what tomorrow brings.

Source: [1] https://group.legalandgeneral.com/en/newsroom/press-releases/one-in-four-of-uk-smes-would-close-immediately-after-losing-a-key-person 

Source: [2] https://adviser.legalandgeneral.com/l/689583/2021-09-22/m2p3g

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An Introduction to Ward Goodman’s EAGERLY Framework https://www.wardgoodman.co.uk/news/introduction-to-eagerly-framework/ https://www.wardgoodman.co.uk/news/introduction-to-eagerly-framework/#respond Fri, 20 Jun 2025 09:08:11 +0000 https://www.wardgoodman.co.uk/?p=22605 When you’re navigating the twists and turns of running a business, having a clear roadmap makes all the difference. At Ward Goodman, we understand that every business owner’s journey is unique – and that’s why we’ve developed the EAGERLY Framework.

This seven-pillar framework is designed to help you think clearly about your goals, adapt with confidence, and take meaningful action at every stage of business development or transition.

What is the EAGERLY Framework??

EAGERLY stands for Expansion, Acquisition, Growth, Exit, Restructure, Lifestyle, and You – each one a core area of a businesses development or transition. Whether you’re growing fast, planning for the future, or simply seeking better balance, the EAGERLY Framework gives you the structure and support to move forward with purpose.

Let’s take a closer look at each of the seven pillars:

Expansion

If you’re scaling up, launching new services, or moving into new markets, expansion can be exciting – but they come with challenges. We’ll help you build a clear growth strategy and manage the practical steps, from recruitment to resource planning. We’ll also help you forecast demand, identify funding options, and make sure your infrastructure can support your ambitions.

Acquisition

Acquiring another business is a significant move. We support you through the full process – from spotting the right opportunities and valuing prospects to negotiating terms and successfully integrating operations. We aim to make the process smooth and strategic, reducing risk and ensuring your acquisition strengthens your long-term position.

Growth

The business landscape is always shifting. We’ll work with you to refine and evolve your business model so you can stay ahead of the curve, remain competitive, and continue to grow sustainably. We’ll help you grow with confidence by improving performance, increasing sales, and gaining greater market share within your current area of operation.

Exit

Whether you’re preparing to sell, hand over leadership, or simply reduce your involvement, we’ll help you plan for a smooth, tax-efficient exit – protecting value and ensuring continuity for the future. From succession planning to due diligence, we’re here to make the transition work for you and your business.

Restructure

Sometimes change is necessary. If your business needs to streamline, adapt to new regulations, or pivot strategically, we offer expert guidance on reorganising your structure to support your new direction. We look at the bigger picture, ensuring your structure supports your goals and helps improve both efficiency and resilience.

Lifestyle

Running a business should support your personal life – not compete with it. We help ensure your business plan aligns with your lifestyle goals, whether that means more freedom, less stress, or a completely new path. Together, we’ll build a plan that works for your wellbeing and the people who matter most to you.

You

At the heart of every business is a person – you. Your ambitions, values, and long-term goals matter. That’s why our advice is always tailored to you, so your business journey stays aligned with what truly matters. We take the time to understand what drives you – and help ensure your business supports that vision every step of the way.

Start Planning EAGERLY

Whether you’re just starting out or navigating a major transition, the EAGERLY Framework offers a clear, practical way to plan and progress. It’s not just about ticking boxes – it’s about helping you build the business and the life you want.

Get in touch with Ward Goodman today to find out how we can apply the EAGERLY Framework to your unique situation.

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What Are Business Advisory Services? https://www.wardgoodman.co.uk/news/what-are-business-advisory-services/ https://www.wardgoodman.co.uk/news/what-are-business-advisory-services/#respond Wed, 18 Jun 2025 11:05:22 +0000 https://www.wardgoodman.co.uk/?p=22593 Running a business often means juggling urgent priorities, reacting to change, and making key decisions on the fly. But what if you had a trusted advisor helping you see the bigger picture? That’s where Business Advisory Services (BAS) come in.

At Ward Goodman, our Business Advisory team works closely with business owners to understand their ambitions, challenges, and opportunities. Whether you’re aiming for rapid growth, preparing for exit, or simply want to run a tighter, more profitable operation, we’re here to help you take a step back and make strategic decisions with clarity.

This isn’t just about numbers – it’s about long-term vision. From scaling up operations to tax-efficient succession planning, the  Business Advisory Services are designed to give you the insight, structure, and confidence you need to move forward.

What is Business Advisory?

Business advisory is a specialised service where experienced advisers support business owners in making informed, strategic decisions. These services cover everything from long-term planning and operational improvements to financial structuring, exit strategies, and succession planning. The goal is to help businesses grow, adapt, and succeed by offering expert insights, tailored recommendations, and ongoing support that align with the owner’s personal and commercial goals.

Unlike traditional accounting, business advisory is proactive and forward-looking – focusing on shaping the future rather than reporting the past.

Introducing the EAGERLY Framework

Ward Goodman’s EAGERLY framework is built around seven key pillars, each representing a core area of business development or transition. Together, they provide a structured way to think about your goals and take action with confidence.

  • Expansion – We support businesses in extending their reach – this could mean launching a new product, entering a new industry, or moving into a different geographic market.
  • Acquisition – If you’re looking to acquire another business, we guide you through every step – from identifying opportunities and valuing prospects to negotiating the deal and integrating operations.
  • Growth – We focus on helping you build upon your existing offering by improving performance, increasing sales, and gaining greater market share within your current area of operation.
  • Exit – When the time comes to step back or sell, we’ll help you prepare your business for a successful handover – minimising tax, maximising value, and ensuring continuity.
  • Restructure – For businesses undergoing change, we provide expert support to reorganise your structure – whether for efficiency, compliance, or new strategic direction.
  • Lifestyle – Business and personal life go hand in hand. We make sure your business plan reflects your personal goals, whether that’s more freedom, reduced stress, or a new direction.
  • You – Ultimately, the business should work for you. We tailor our advice to your long-term ambitions so you stay in control of the journey.

 

This framework keeps your goals front and centre while giving you a practical route forward – whether you’re planning the next phase or navigating a complex transition. 

Learn more about our EAGERLY framework.

Why Business Advisory Matters

Many businesses reach a point where growth slows, or complexity increases, and the path ahead becomes unclear. Our clients often come to us asking:

  • How can we grow without risking what we’ve built?
  • Are we structured in the most tax-efficient way?
  • What’s the best plan for handing over or exiting the business?
  • How do we turn ambition into a sustainable strategy?

 

With Business Advisory, you’re not navigating those questions alone. We help you:

  • Gain objective insight beyond daily operations
  • Align your financial and strategic goals
  • Avoid costly mistakes through expert guidance
  • Build a plan that’s realistic, measurable, and adaptable

What Does Business Advisory Look Like in Real Life?

Here are some real examples of how our team has helped businesses across Dorset and other parts of the UK:

  1. Expanding with Confidence
    A client approached us with plans to expand into a new location while introducing two additional service lines. They wanted to streamline operations and ensure the financial viability of the expansion. We supported them with budgeting, forecasting, and setting clear KPIs and ROI targets – laying the foundations for lender confidence and sustainable growth across the South West.
    Read the full case study →
  2. The Dream Property Journey
    When a client found their dream home with a commercial unit, we helped unlock company-held funds via a director’s loan and supported them in structuring the purchase. Our VAT and finance advice enabled them to move forward confidently – combining business needs with personal goals.
    See how it worked →
  3. Inheritance Tax Peace of Mind
    We worked with a client looking to reduce a significant potential IHT liability and pass on wealth to future generations. Through careful planning, we helped restructure ownership, establish a discretionary trust, and make use of pension contributions to reduce the estate’s value. The result: over £400,000 in estimated IHT savings and a long-term plan aligned with their family’s goals.
    Learn more →
  4. Preparing for Exit
    We supported a long-standing client in planning their business exit by aligning personal and commercial goals. Our team restructured the group, helped extract a key property tax-efficiently, and provided lifestyle-focused investment forecasts. Collaborative planning ensured a smooth transition and strong financial future.
    See the results →
  5. Reframing the Business for a New Lifestyle
    We helped a client realign their business with their personal goals – relocating closer to the coast and simplifying operations. By restructuring remuneration, selling company vehicles, and using pension funding to purchase new premises, they improved cash flow and work-life balance.
    Read the case study →

Common Questions About Business Advisory Services

Is business advisory just for large companies?
No. Small and medium-sized enterprises (SMEs) often benefit the most, as they may lack in-house strategic support. Tailored advice can help unlock growth, improve cash flow, or plan for succession.

How much do business advisory services cost?
Costs can vary depending on the scope of the work, the level of expertise required, and the complexity of your business. Some advisers charge a flat fee for specific projects, while others work on a retainer or hourly basis, at Ward Goodman we are flexible and open to an approach that suits you.

How soon will I see results from business advisory support?
This depends on your goals and the nature of the engagement. Some improvements – like cost savings or process efficiencies – may be visible within months, while larger strategic shifts, such as restructuring or exit planning, can take longer.

Do I need to work with an adviser long term?
Not necessarily. Some businesses need help with a specific challenge or transition, while others benefit from ongoing guidance. It’s flexible and can be shaped around your needs.

When should I consider working with a business advisor?

If you’re going through a period of change – whether that’s scaling up, restructuring, facing operational challenges, or planning for succession – it could be the right time. Business advisors help bring clarity to complex decisions and align your strategy with both commercial and personal goals.

How can I measure the impact of advisory services?
Look at key business metrics like revenue growth, profitability, operational efficiency, or reduced tax liability. At Ward Goodman, we will help you define these KPIs at the start of the engagement.

What’s the difference between business advisory and accounting?
Accounting looks at past performance, whereas business advisory is forward-focused. It’s about strategic planning, identifying opportunities, and making informed decisions to shape the future.

What does a business advisor actually do?
A business advisor provides strategic insight and practical support across areas like financial planning, operations, succession, and growth. They help identify opportunities, mitigate risks, and ensure decisions align with your business and personal goals. 

Can a business advisor help with both strategy and day-to-day operations?
Yes. While strategy is often the starting point, many advisors also assist with implementation – such as improving reporting processes, refining structures, or adjusting remuneration strategies.

Get in Touch

If you’re thinking about the next stage for your business – whether that’s growth, simplification, or succession – we’d love to talk.

Book a no-obligation discovery call with our experts today or explore our full Business Advisory Service.

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How to Prepare for the 60% Tax Trap and Reduce Your Effective Tax Rate https://www.wardgoodman.co.uk/news/avoid-60-percent-tax-trap/ https://www.wardgoodman.co.uk/news/avoid-60-percent-tax-trap/#respond Tue, 10 Jun 2025 12:00:43 +0000 https://www.wardgoodman.co.uk/?p=22384 Written by Amanda Colbourne & Roger Duckworth

Ward Goodman
June 10, 2025

Earning over £100,000 might sound like a financial milestone – and in many ways, it is. But once your income tips into six figures, something unexpected happens: you could find yourself in one of the UK’s most punishing tax bands, where the effective rate of tax hits an eye-watering 60%. It’s a frustrating reality that catches out many high earners, especially those who aren’t actively planning for it.

Let’s break down what’s going on, why it matters, and what you can do about it.

What is the 60% Tax Trap?

The 60% tax trap kicks in once your income passes £100,000. From that point, for every extra £2 you earn, you lose £1 of your personal allowance – the tax-free chunk of income everyone gets (currently £12,570).

This means that between £100,000 and £125,140, you’re not just paying the 40% higher-rate tax – you’re also gradually losing that allowance. Add it all up, and the tax you’re effectively paying on that slice of income works out at a whopping 60%.

It’s a surprising penalty that only affects a small proportion of earners – around 2% of UK taxpayers – but if you’re in that bracket, the financial impact can be significant. And because it’s not part of the official tax bands, many people don’t spot it until they’ve already fallen into it – often after a bonus, freelance work, or a one-off windfall bumps them over the thresh

Why It Matters

This is one of those quirks in the system that really hurts if you’re not prepared. Imagine doing a bit of extra work, expecting a £5,000 net gain, and then realising the taxman has taken more than half. It stings.

It also affects more than just your income tax bill. If you are claiming Tax-Free Childcare and your income exceeds £100,000, you will cease to be eligible.

The good news? There are ways to bring your income back below the £100,000 threshold – or at least reduce how much of it falls into that high-tax window. These strategies can also help if you are affected by one of the other tax thresholds: if your income exceeds £60,000 it could affect your entitlement to Child Benefit, an income of over £125,140 would push you into the additional-rate band, and an income of over £200,000 could reduce your pension annual allowance.

Strategies to Reduce Your Effective Tax Rate

If your income puts you in or near the danger zone, there are a few smart, completely legitimate ways to ease the pressure.

1. Make Pension Contributions

This is probably the most effective option. Pension contributions reduce your adjusted net income – which is what HMRC uses to decide if you lose your personal allowance.

Put simply, by paying more into your pension, you could bring your taxable income back under £100,000 and hang onto that allowance. The result? You pay less tax now and grow your pension for the future. It’s a win-win.

If you’re caught in the 60% trap, every £1 you contribute to your pension could save you 60p in tax. That’s a powerful incentive. And if you want more control over your pension investments, a SIPP (Self-Invested Personal Pension) might be worth exploring.

Example: Imagine you earn £110,000 – which puts you £10,000 above the threshold and costs you £5,000 of your personal allowance. That alone could mean paying around £2,000 more in tax. But if you contribute £8,000 into your pension, the pension provider will claim basic rate tax relief and add this to your contribution to gross it up to £10,000. Your adjusted net income drops to £100,000, your full allowance is restored, and you save that £2,000 in tax – plus you’ve added a useful sum to your pension pot and you can claim back a further £2,000 of higher rate tax. It’s a practical way to keep more of your money while investing in your future.

If you contribute to a “net pay” arrangement pension scheme where your employer deducted your contributions from your pay before taxing it, you will have to contribute £10,000 but will reduce your tax by £6,000 so the end result is the same.

2. Donate to Charity (and Use Gift Aid)

Giving to charity can also bring your adjusted net income down. Under the Gift Aid scheme, when you donate to a registered charity, they can claim back the basic-rate tax, and if you’re a higher-rate or additional-rate taxpayer, you can claim the difference back via your tax return.

Here’s a more detailed example: Suppose your income is £110,000. At that level, you’ve lost £5,000 of your personal allowance, which means an extra £2,000 in tax. Now, let’s say you make a £8,000 donation to a registered charity using Gift Aid. The charity will claim back £2,000 of basic rate tax and you will be treated as having made a gross donation of £10,000. That donation reduces your adjusted net income to £100,000, which restores your full personal allowance.

The result? You reclaim the £2,000 you would have lost in tax plus a further £2,000 of higher rate tax, the charity gets a boost from your Gift Aid, and you’ve made a meaningful contribution to a cause you care about – all while cutting your effective tax rate.

And here’s the key point: while you’ve donated £8,000, the combination of restored personal allowance and higher-rate tax relief means that your real cost is only £4,000. In other words, you’re choosing to give to a cause you believe in, instead of handing that same money to HMRC.

3. Use Salary Sacrifice

If your employer offers salary sacrifice schemes – such as extra pension contributions, childcare, or even leasing an electric car – you might be able to reduce your gross income in a tax-efficient way. This can be particularly helpful if you’re sitting just above the £100,000 income threshold.

An Example: Take a bonus, for example. Instead of receiving it as cash (which could push you into the 60% tax band), you could sacrifice it into your pension or towards an electric vehicle lease. The result? You avoid losing your personal allowance and reduce both your income tax and National Insurance liability.

Electric car leasing via salary sacrifice has become especially popular. Under current rules, the Benefit-in-Kind (BiK) tax on fully electric cars is just 2% (rising slowly in future years), making it far cheaper to access an EV this way than to lease privately. The cost of the lease comes out of your gross salary, so you avoid income tax and NI on that amount. Meanwhile, your employer also saves on their National Insurance bill.

For example, if you lease a £40,000 EV through salary sacrifice, your gross income could drop to £96,000 – bringing your earnings below £100,000. That means you keep your full personal allowance, reduce your tax bill, and drive a brand-new car for less than you’d pay on the high street.

Not sure if your employer offers these schemes? It’s worth asking – and we can help you assess which ones make the most sense for your situation.

Why Mid-Year is a Great Time to Act

Most people wait until March to think about tax planning, but that’s often too late to act meaningfully. Midway through the tax year – say, around autumn – is actually the sweet spot. You’ve got a clear view of your income so far and enough time to make changes.

Whether it’s setting up a new pension contribution plan, making a charitable donation, or adjusting your salary packaging, doing it now means you’re not scrambling at the last minute.

A simple mid-year review can help you:

  • Estimate your year-end income
  • Plan pension contributions or donations in advance
  • Avoid unpleasant surprises come April

How We Can Help

At Ward Goodman, we work with individuals across the income spectrum – but especially those in that awkward middle: not quite ‘wealthy’ enough for ultra-high-net-worth tax planning, but earning enough to get hit by these stealthy tax traps.

We can help you understand exactly where you stand, what options you have, and how to make the most of your money. That could mean advising on pensions, guiding charitable donations, or working with your employer on salary structuring.

And if you’re a company director, we can also help structure your remuneration in a way that works smarter for you.

If your income is hovering around that £100,000 mark – or if you think a future promotion or bonus might tip you over – now’s the time to get ahead of it.

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What You Need to Know About the Coming Inheritance Tax Changes (April 2026–2027) https://www.wardgoodman.co.uk/news/inheritance-tax-changes-2026-2027/ https://www.wardgoodman.co.uk/news/inheritance-tax-changes-2026-2027/#respond Thu, 22 May 2025 13:44:11 +0000 https://www.wardgoodman.co.uk/?p=22061 Written by Gareth Simon

Ward Goodman
May 22, 2025

Big changes are coming to inheritance tax (IHT) – and if you’re a business owner, landowner, or have a sizeable pension pot, you need to be thinking ahead. Two major changes to inheritance tax rules are on the horizon – one scheduled for April 2026, the other for April 2027. Both are likely to reshape how estates are taxed, with potentially major implications for families, business owners, and landowners.

Here’s what’s changing, who it will affect, and what steps you can take today to stay ahead.

What’s Changing?

1. Business Property Relief (BPR) and Agricultural Property Relief (APR)

From April 2026, the government plans to tighten the rules around BPR and APR – two reliefs that have traditionally played a crucial role in passing on farms and businesses without triggering a hefty tax bill.

Under the proposed changes:

  • The first £1m of combined agricultural and business property will continue to receive 100% relief, with 50% relief on amounts over £1m
  • AIM-listed shares will be affected — from April 2026, they will qualify for only 50% Business Property Relief, regardless of value, and will not benefit from the new £1 million 100% relief allowance.

 

This change marks a real turning point. Until now, many family businesses and agricultural estates have managed to stay out of the IHT net altogether. But with reliefs being capped, more of these estates will now face sizeable tax bills.

An Example: Take a couple with a business valued at £1.8 million. Under current rules, Business Property Relief could potentially cover the full amount. But once the cap kicks in, only the first £1 million would qualify for 100% relief. The remaining £800,000 would be eligible for only 50% relief – meaning £400,000 would be subject to inheritance tax. At the standard 40% rate, that results in a £160,000 tax bill that wouldn’t have existed under the current system.

2. Pensions to Be Included in IHT (from April 2027)

Pensions have traditionally been a very tax-efficient way to pass on wealth. Currently, most pension pots fall outside of a person’s estate for IHT purposes.

That’s expected to change. From April 2027, subject to final confirmation and legislation:

  • Unused pension pots will be included in the taxable estate.
  • The nil-rate band, which is currently set at £325,000, will be applied across both pensions and other assets, reducing the overall tax-free allowance available elsewhere.
  • There’s also the potential for double taxation – with pensions being hit by both IHT and income tax on withdrawal.

 

Add to that the probate complications, as executors will need to coordinate with pension providers and potentially settle tax liabilities before beneficiaries can access funds.

Who Will Be Affected?

These changes will hit:

  • Business owners who assumed their enterprise could be passed on tax-free.
  • Farmers and landowners with agricultural property that previously qualified for 100% relief.
  • Wealthy individuals with large pensions, especially those in drawdown or with unused pension pots intended for inheritance – particularly where values exceed the current nil-rate band of £325,000.

 

It’s not just the ultra-wealthy who need to pay attention. Plenty of families will find that previously exempt estates now face a substantial IHT bill unless they act soon.

What You Should Do Now

1. Review Your Estate Plan

Work with a financial planner such as Ward Goodman to assess how these changes could affect your estate. If you’re relying on BPR or APR, look at the current value of your assets and how much relief might still be available post-2026.

2. Use the Current Rules While You Can

We’re in a window where the existing legislation still applies. That makes now the ideal time to act. If you’re considering gifting business or agricultural property, or reorganising your affairs, doing so before the changes come into effect could protect more of your wealth.

3. Consider Trusts

Trusts can help manage how assets are passed down and provide flexibility when navigating changing tax rules. While they’re not a one-size-fits-all solution – and come with their own rules – they remain a valuable planning tool, especially in light of reduced reliefs.

4. Reassess Your Pension Strategy

If your pension forms part of your estate plan, now is the time to revisit it. Consider:

  • Reviewing your nomination forms to make sure they’re up to date.
  • Looking at how your pension is invested and whether any drawdown strategies need adjusting.
  • Seeking advice on whether life insurance or other protections might be needed to cover future IHT.

 

5. Start Planning Early

The worst position to be in is reacting at the last minute. By planning ahead, you have more options and more control. Leaving it until after April 2026 or 2027 could limit your choices and increase your tax exposure.

Consideration also needs to be given to how any IHT will be funded and the cash flow impacts this may have on a business.  With the right planning, a managed succession strategy can significantly mitigate the risks arising from the new BPR regime. 

Final Thoughts

The proposed changes to IHT are far-reaching and will affect more families than many realise. But with the right planning, you can still take control and protect your legacy.

At Ward Goodman, we help individuals and families plan ahead with clear, practical advice. Whether you’re a business owner, a farmer, or someone with a significant pension pot, we’ll help you navigate these upcoming reforms and develop a plan that works for your circumstances.

Now is the time to act – before the rules change.

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Smart Strategies to Make the Most of Your ISA and Pension Allowances https://www.wardgoodman.co.uk/news/smart-strategies-isa-pension-allowances/ https://www.wardgoodman.co.uk/news/smart-strategies-isa-pension-allowances/#respond Tue, 20 May 2025 13:14:09 +0000 https://www.wardgoodman.co.uk/?p=22053 It might feel like the new tax year has only just begun — and that’s because it has — but getting ahead on your financial planning now gives you the breathing room to make smart decisions without any last-minute rush. The 2025/26 tax year runs until 5 April, so there’s still loads of time to make the most of your allowances. Whether you’re aiming to lower your tax bill or simply want your savings and investments working harder, a little planning now could make a big difference later.

Maximise Your ISA Allowance

You’ve got up to £20,000 to put into ISAs this year, and any growth or income from those investments will be tax-free. That’s a pretty generous opportunity. Couples can each use their own allowance, effectively sheltering up to £40,000 from tax.

Not sure where to invest just yet? No problem. You can still pay into your ISA and leave it in cash until you’ve made up your mind. One common approach is the so-called ‘bed and ISA’ — where you sell existing investments to use up your Capital Gains Tax allowance, and then buy them back inside your ISA wrapper. Just be cautious; timing and market movements can catch you out, so it’s worth speaking to a professional.

Don’t Forget Junior ISAs

Got kids or grandkids? Junior ISAs let you stash away up to £9,000 per child, tax-free. They’re a great way to set children up for big life events — like education or their first home. And while only a parent or guardian can open a JISA, anyone can pay into it. Grandparents, godparents, aunts, uncles — everyone can get involved. It’s a tax-smart way to pass wealth down the generations.

LISA – Lifetime ISAs

If you’re aged between 18 and 39, a Lifetime ISA could be well worth a look. You can put in up to £4,000 this tax year, and the government will top it up by 25%. That’s an extra £1,000 just for saving. You can use a LISA to buy your first home (as long as it’s under £450,000) or keep it until you’re 60 and use it towards retirement. Just be careful — if you withdraw the money for anything else, you’ll get hit with a penalty.

Review Your Pension Contributions

Pensions remain one of the most tax-efficient ways to save for the future. For most people, the annual allowance is £60,000 — or 100% of your earnings, whichever is lower. And if you didn’t use all of your allowance in previous years, you might be able to ‘carry forward’ some of that unused room.

High earners should watch out for the tapered annual allowance. If your adjusted income is over £260,000, your allowance starts to shrink, potentially down to £10,000. On the flip side, even if you’re not earning, you can still contribute up to £2,880 a year and get a government top-up to £3,600. That’s free money just for saving.

Consider Timing for Capital Gains and Dividends

Your Capital Gains Tax (CGT) allowance is now just £3,000 for the year — so if you’re planning to sell assets like shares, timing matters. Couples can double up, and spouses can transfer assets between each other to make the most of both allowances. Don’t wait until March to start thinking about this.

The dividend allowance has also been cut right back — just £500 this year. If you hold dividend-paying shares in a regular trading account, you could end up with a surprise tax bill. Tucking those investments inside an ISA or pension can help you avoid that.

2025/26 Tax-Free Allowances at a Glance

To help you keep things straight, here’s a quick look at the main tax-free allowances for this year:

Allowance Type Amount Notes
ISA Allowance £20,000 Tax-free savings across Cash, Stocks & Shares, Lifetime, and Innovative Finance ISAs.
Junior ISA Allowance £9,000 For under-18s. Can be a Cash or Stocks & Shares JISA.
Lifetime ISA (LISA) Allowance £4,000 Counts towards the £20,000 ISA cap. Government adds 25% bonus.
Pension Annual Allowance £60,000 Can contribute more with carry forward if eligible.
Money Purchase Annual Allowance (MPAA) £10,000 Applies if you’ve already accessed your pension flexibly.
Tapered Annual Allowance Threshold £260,000 High earners see a reduced pension allowance above this level.
Capital Gains Tax (CGT) Allowance £3,000 Gains above this are taxable. Use it or lose it each tax year.
Dividend Allowance £500 Tax-free dividend income limit — best kept within ISAs or pensions.
Personal Savings Allowance £1,000 Basic rate taxpayers only. Higher rate = £500. Additional rate = £0.
Personal Allowance £12,570 Tax-free income before income tax kicks in. Reduces for incomes above £100,000.

Note: These figures apply to the 2025/26 tax year and could change in future.

Final Thoughts On Planning Ahead

We get it — tax planning probably isn’t the most exciting item on your to-do list. But doing it early means fewer surprises and better outcomes. There’s still plenty of time to act, and making the most of your allowances now could mean paying less tax and building more wealth over time.

Whether it’s putting more into your ISA, revisiting pension contributions, or exploring how best to pass on wealth to family — it’s worth having the conversation sooner rather than later. And if you want help navigating the options, our team at Ward Goodman is always here to support you with tailored advice.

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New Halifax Remortgage Deal – Market-Beating Rate, But With Caveats https://www.wardgoodman.co.uk/news/halifax-remortgage-deal/ https://www.wardgoodman.co.uk/news/halifax-remortgage-deal/#respond Tue, 20 May 2025 08:00:00 +0000 https://www.wardgoodman.co.uk/?p=22044 Written by Isabella Nicholls

Ward Goodman
May 20, 2025

Halifax, the UK’s biggest mortgage lender, has just rolled out a new remortgage offer – and on the surface, it looks like one of the cheapest deals around right now. But there are a few strings attached. It’s not open to everyone and can only be accessed through whole-of-market brokers like us at Ward Goodman.

We’re able to offer deals like this that you won’t find going direct to the lender. And more importantly, we help you figure out if it actually makes sense for your situation – not just if it looks good on paper.

Halifax Remortgage Offer Key Features:

  • Only through intermediaries – You won’t find this on a comparison site. It is only available to intermediaries such as Ward Goodman.
  • Headline rate – One of the lowest currently available.
  • Loan range – Applies to mortgages between £250,000 and £2 million.
  • Fee – A substantial £1,999 up front (more than double what many other lenders are charging).

Compared to Others:

Take Barclays, for instance – they’re offering a 3.95% rate on loans from £100,000 with a far lower fee of just £995.

What It Actually Costs:

That low Halifax rate might catch your eye, but when you factor in the fee, the deal starts to look a bit different. Spread over a two-year fix, that £1,999 adds roughly £83 a month to your repayments. That’s why looking beyond the rate is essential – and exactly what we help our clients do.

What’s Happening in the Market?

  • Rates are slipping down – Sub-4% deals are becoming available, especially if you’ve got plenty of equity.
  • Shorter fixes are cheaper – Two-year deals tend to offer better rates than five-year options right now.
  • Big-picture economics – Global events (like tariff threats from US President, Donald Trump) could put pressure on growth, which might push interest rates even lower.

What This Means for Borrowers

Why It Pays to Use a Whole-of-Market Mortgage Adviser

When you work with an adviser like us – someone who can access the entire market – you get more than just a list of deals. You get:

  • Honest comparisons of what’s really out there
  • Advice personalised to your goals and plans
  • A clearer picture of total costs – including fees, flexibility, and exit charges
  • Access to deals not available direct

In short, we help you avoid costly surprises later.

This Halifax deal could be great… for the right borrower. It’s aimed at those with bigger loans, who don’t mind the high fee and can tick all the lender’s boxes. But for plenty of people, it might not stack up once the numbers are crunched.

At Ward Goodman, our job is to help you work through all of that. Whether it’s this Halifax remortgage deal or something else entirely, we’ll show you what fits best based on your circumstances – not just the marketing headline.

Speak to an Expert

Thinking about remortgaging? Want to know what deals are right for you? Give Adrian Seager a call on 01202 875900. He’s our in-house mortgage specialist and is fully authorised by the FCA (No. 221867).

We offer independent, whole-of-market mortgage advice. That means no bias, and no upselling – just honest guidance to help you make a smart choice.

** Your home may be repossessed if you do not keep up repayments on your mortgage.

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New Chapters and Finances: Thinking About Divorce After 50 https://www.wardgoodman.co.uk/news/divorce-after-50-financial-planning/ https://www.wardgoodman.co.uk/news/divorce-after-50-financial-planning/#respond Wed, 14 May 2025 16:20:07 +0000 https://www.wardgoodman.co.uk/?p=22038 Written by Adrian Seager

Ward Goodman
May 14, 2025

Life, as we all know, doesn’t always stick to the script. Sometimes, later in life, things can take a significant turn, and one of the trickier paths to navigate is divorce after you’ve passed 50. It’s becoming more common, this “grey divorce” as some call it, and it brings with it a unique set of financial puzzles that really need some careful thought and, let’s be honest, probably some expert help.

Here at Ward Goodman, we get that this isn’t just about numbers; it’s a big life change with plenty of emotions involved. Our aim is to offer some clarity and support, helping you get your head around the key financial bits and pieces as you step into this new phase.

The Paradox of “Grey Divorce”: Why It’s Rising While Overall Divorce Rates Fall

It’s a bit of a head-scratcher, isn’t it? You hear about overall divorce rates in the UK actually going down, which might make you think marriage breakups are becoming less common. But then you look at folks over 50 – what they call “grey divorce” or “silver splitting” – and the picture is quite different. It’s definitely on the up. This makes you wonder what’s going on, why later life is seeing more couples parting ways even as things seem to be stabilising for other age groups.

To give you an idea of the numbers, back in 2022, the total number of divorces in England and Wales hit a real low – the lowest since way back in 1971, at around 80,000. That’s a pretty big drop from the year before. Yet, if you zoom in on the over-50s, the trend is the opposite. Since the 1990s, the rate of divorce in this age group has actually doubled! And in 2021, around one in four divorces involved someone over 50. It really highlights how different the experience of relationships can be depending on where you are in life.

So, what’s the story behind this? Why are more people deciding to go their separate ways after 50? Well, there are a few things that seem to be playing a part:

  • Living Longer, Wanting More from Life: Let’s face it, people are living much longer and healthier these days. If you’re in your 50s or 60s, you could still have a good few decades ahead of you. The idea of staying in a marriage that isn’t making you happy for all that time just doesn’t sit right with a lot of people anymore. As the research pointed out, retirement isn’t the full stop it used to be; it’s a new chapter, and some people want to make the most of it.
  • More Women Standing on Their Own Two Feet: It’s great to see that more women, especially in later generations, have their own financial security. This independence can be a real game-changer. It means that staying in an unhappy marriage because you feel you have to financially is less of a barrier than it might have been for previous generations.
  • Times Are Changing: Society’s views on divorce have shifted a lot. It’s not the taboo it once was, and that can make it easier for older people to consider it as an option without feeling the weight of judgment.
  • Kids Grown Up and Gone: The “empty nest” thing is real. Once the kids have flown the coop, some couples might find that the main thing holding them together was raising their family. When that focus goes, they might realise they’ve grown apart or want different things for their future.
  • Looking for What Makes You Tick: Later life can be a time for some serious soul-searching. People might have a renewed sense of wanting to pursue their own interests and find personal fulfillment, and sometimes that means a change in their relationship.
  • A Less Stressful Way to Part Ways: The introduction of “no-fault” divorce in 2022 might also be playing a role. It can make the whole process less confrontational, which might be a relief for older couples who just want a clean break without the drama of assigning blame.

 

Ultimately, this rise in “grey divorce” seems to be down to a mix of us living longer, having more freedom and different expectations for our later years, and a shift in how we view relationships and personal happiness. It’s a reminder that life and relationships are always evolving.

Splitting What You’ve Built Together: Property and Pensions

When you’ve been together for a while, you tend to accumulate some pretty significant assets, and for most couples, the big ones are property and pensions. How these get divided when you divorce can really shape your financial future, so it’s important to get it right.

The Family Home: That place you’ve built memories in often holds a lot of emotional weight, not to mention financial value. When a couple parts ways, you’ve got to figure out what happens to it. Maybe one person buys the other out? Perhaps you sell up and split the proceeds? Or sometimes, you might even delay selling, especially if there are still kids at home.

Getting a proper handle on what the property is actually worth is the first step – a professional valuation is usually a good idea. And if someone wants to stay put, they’ll need to sort out things like mortgages or maybe even look into options like equity release (we’ll touch on that in a bit).

Pensions: Planning for Your Future: Pensions, built up over years of work, are a crucial part of your retirement plans. And yes, they’re also part of the pot when you divorce. The courts have a few ways they can deal with pensions, including:

  • Pension Sharing Order: This basically splits the pension pot right there and then, creating separate pensions for both of you.
  • Pension Attachment Order (Earmarking): This used to be more common, where a chunk of the pension would be paid to the ex-spouse when it started being drawn. You don’t see this as much now.
  • Offsetting: Here, the value of the pension is balanced against other assets, like the house.

 

Given that pensions can be a bit of a minefield in terms of rules and regulations, and they have such a big impact on your later years, getting some solid financial advice here is really key to making sure things are fair for everyone. The newsletters from Ward Goodman consistently highlight the importance of understanding financial regulations and planning for the future, which absolutely applies here when navigating pension division during divorce. 

Sign-up to the Ward Goodman free financial and business advisory newsletter today.

Tax Considerations When Selling Assets in Divorce

When a couple separates, selling jointly held assets such as property, shares, or investment portfolios is often part of the process. However, it’s important to understand that these transactions can trigger Capital Gains Tax (CGT) or other tax liabilities, depending on the timing and nature of the assets involved.

For example, if investments are sold as part of a divorce settlement after the end of the tax year in which the couple permanently separated, CGT may apply to any gains above the annual allowance. With the CGT exemption now reduced to £3,000 per individual for the 2025/26 tax year, careful planning is more important than ever.

This is where Ward Goodman offers a real advantage. As financial planning and tax specialists, our team can help you understand the full tax implications of your divorce, including:

  • Whether asset disposals will attract CGT
  • How best to time or structure sales to minimise your tax bill
  • Strategies such as spousal transfers before separation deadlines, or using losses to offset gains

 

These are complex decisions with long-term financial consequences. By working with our advisers, you can avoid costly mistakes and protect more of your wealth as you plan your next chapter.

Looking at Your Options: Buying Someone Out and Equity Release

As we mentioned, if one of you wants to keep the family home, they might need to “buy out” the other person’s share. This could involve dipping into savings or taking out a new mortgage.

For those over 55, equity release might also be something to consider. It’s a way to get some of the cash tied up in your property without actually having to sell it. You could get a lump sum or even regular income, secured against your home. But, and it’s a big but, you really need to understand the long-term implications of this, like how it might affect what you can leave to others and the potential for interest to build up. Getting independent financial advice is absolutely crucial to figure out if this is the right path for you.

Why Getting Good Advice Matters, Especially Now

Navigating divorce finances at any age is tough, but it’s particularly crucial after 50, with retirement on the horizon. Getting advice from Ward Goodman can really help by:

  • Clarifying your financial situation.
  • Showing how settlements can impact your future.
  • Guiding you through pension sharing.
  • Assessing your property options.
  • Creating a plan personalised to your next chapter.

 

Divorce is emotionally draining enough without financial worries. Getting professional help gives you a clearer view of your future, boosting your confidence. Don’t feel you have to go it alone – contact the Ward Goodman team today and let’s get your financial future on track.

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