Financial Planning Case Study

Background

Mr & Mrs Brown downsized from a substantial property in the home counties. In doing so, they cleared their remaining mortgage and released £1m of equity. Mr Brown is approximately 2 years away from retirement and is looking to structure his portfolio tax efficiently to maximise his future income in retirement. Once Mr Brown eventually retires, they are hoping to achieve a net income of c. £50,000 from the funds and Mr Brown is likely to be a higher rate taxpayer.

Problem

Mr Brown is currently an additional rate taxpayer, meaning that any income generated from cash deposits would be taxed at 45%. Cash deposits are also unlikely to enable him to meet his income target once he fully retires and are unlikely to keep pace with inflation.

Solution

Fiducia arranged the