Capital Gains Tax Allowances, Liabilities & Reliefs
In the tax year 2026/2027, an individual’s CGT allowance is £3000.
This means you do not have to pay tax on gains from buying and selling shares or other investments during the tax year up to that amount. You do not normally have to pay tax on any gain you make when you sell your main residence.
The income tax Personal Allowance for the year 2026/2027 is £12,570 (2025/2026 was also £12,570). If your total income is less than this during the tax year, you have no tax to pay.
Tax rates 2026-2027: Income Tax Personal Allowances
Most of us face being taxed on our income, our capital gains, and in some circumstances the value of our estate when we die.
Taxation can be very complicated and the rules, reliefs and allowances often change, so it is worth obtaining a clear grasp of how these taxes work by discussing with a professional adviser the most efficient way to arrange your finances.
An expert will be able to help you plan your taxes in advance, and come up with effective strategies that will use the lawful reliefs and allowances to minimise the amount you have to pay.
By understanding how taxation works, you should be better prepared to manage your finances and you could save money in the long run.
One thing can be said for all forms of tax: if you do nothing, it is possible that you could end up paying more to the Government than you actually need to do.
It should be noted that the information contained in this section relates to our current understanding of the law of England & Wales as it relates to Lasting Power of Attorney which is subject to change. Laws in other parts of the UK will differ.
Managing your affairs and lasting power of attorney
There may come a time when, because you are incapable of managing your property and financial affairs or personal welfare, you will need someone to do this for you.
You can formally appoint a friend, relative or professional to hold a lasting power of attorney that will allow them to act on your behalf. Lasting power of attorney (LPA) in England and Wales has no legal standing until it is registered with the Office of the Public Guardian. A lasting power of attorney is a legal document that lets you appoint someone you trust as an 'attorney' to make decisions on your behalf.
It can be drawn up at any time while you have capacity but has no legal standing until it is registered with the Office of the Public Guardian.
A trust is an obligation binding a person (which can be an individual or a company) called a 'trustee' to deal with 'property' in a particular way, for the benefit of one or more 'beneficiaries'.
What is a 'trustee'?
Trustees are the legal owners of the trust property. They are legally bound to look after the property of the trust in a particular way and for a particular purpose. Trustees administer the trust and in certain circumstances make decisions about how the property in trust is to be used.
What is property?
The property of a trust can include:
Money
Investments
Land or buildings
Other assets, such as paintings
The cash and investments held in the trust are also called the 'capital' or 'fund' of the trust. This capital (or fund) may produce income, such as interest or dividends. The land and buildings may produce rental income.
Your financial situation is unique and so are our services. We follow a four-step process to build a relationship and provide quality advice:
Our Process for Providing Quality Advice
1. Understanding You
By gathering information from you we will find out about any plans you already have in place. Then by exploring your attitude to risk and return, and your hopes and aspirations, we will build a picture of what you want to achieve.
At this stage, you will find out what to expect from us and how you will benefit from using us.
2. Planning
We’ll explore and research various scenarios to make the best use of your existing plans.
We’ll then recommend how you can build on your existing plans so you give yourself the best chance of achieving your goals.
A Self Invested Personal Pension (SIPP) is a Registered Pension scheme under the terms of the Finance Act 2004.
SIPPs are designed for investors who want maximum control over their pension without being dependent on any one fund manager or insurance company. As such, a SIPP requires active management and a degree of investment expertise. Furthermore, the charges (levied by the SIPP manager) may be higher than for a personal pension or stakeholder plan.
Unlike a standard personal pension, a SIPP holder has a much wider choice of assets to invest in, each of which can be selected to meet the individual's circumstances and requirements.
Investments which can be held in a SIPP include:
UK and overseas equities
Unlisted shares
OEICs and unit trusts
Property and land (but not most residential property) insurance bonds
It’s possible to use a SIPP to raise a mortgage to fund the purchase of commercial property, where the rental income paid into the SIPP either completely, or partially, covers the mortgage repayments and/or the property’s running costs.
Executive Pension Plans (EPP) are tax-efficient savings plans set up by the company for key employees. The employer (and sometimes the employee) pays into the plan, to build a tax-efficient fund, which is used at retirement to provide tax free cash and a pension income. In effect, EPPs are money purchase occupational pension schemes and operate for the most part like any other pension scheme.
EPPs are normally established by company directors or other valued employees for their own benefit, though, only the favoured can expect to be given the levels of investment that these schemes offer.
From an employer’s perspective, an EPP can form the core of a benefits package to attract, motivate and reward key executives. Additionally, there are financial benefits as contributions are allowable business expenses and can be set against taxable profits. Furthermore, there is no NIC liability and so extra pension contributions into an EPP can be made instead of salary increases.
SSAS — also known as a Small Self Administered Scheme (SSAS) — is a company pension scheme, the members of which are usually directors and key employees of the sponsoring employer.
Whilst subject to the same rules relating to contributions and benefits as a normal company pension scheme, SSAS schemes have considerably more flexibility and control over the investment policies and the scheme’s underlying assets. Contributions by individual members qualify for tax relief. Whereas contributions made by the employer may be deductible against profits, subject to certain conditions.
Other considerations are that SSAS schemes are typically established for a small number of members, and there can be limits on certain types of investments under HMRC rules.
(Please note – this is for information only and does not constitute advice. This is a potentially complex area and for further information or to obtain a State Pension statement please visit the government website at https://www.gov.uk/browse/working/state-pension)
About the state pension
A State Pension is a regular payment made by the government to people who have paid or been credited with a minimum amount of Class 1, 2 or 3 National Insurance Contributions and have reached State Pension age.
State Pension Age
The State Pension age for men and women is currently 66 but will increase to 67 between 2026 and 2028.
Under the current law, the State Pension age is due to increase to 68 between 2044 and 2046. However, the Pensions Act 2014 provides for reviews of the State Pension age at least once every 5 years, taking into account a range of factors that are relevant to setting the pension age, one of which will be changes in the life expectancy of the population.
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