Although the following case study relates to an actual example, where we have helped our clients by providing solutions to their financial problems, the names and figures have been changed for confidentiality purposes. 

April is a NHS consultant whose husband passed away in his mid thirties. The couple did have life insurance in place, but April was uncertain how to invest the benefit received in a tax efficient and responsible way. Being financially secure, April did not need to spend the benefit received immediately herself but wanted to see it invested sensibly and respectfully.

Lucy considered April’s situation and concluded that, since she is a young woman, it was not appropriate to lock the funds into a pension that would be inaccessible for upwards of 20 years. Additionally, NHS consultants often have issues exceeding their pension lifetime allowance.

Using her holistic approach, Lucy concluded it was best to invest the money in a tax efficient way that would make best use of April’s allowances. The financial vehicle selected was a Unit Trust which, each year, feeds into Emma’s stocks & shares ISA.  Once all the funds have been fed into the ISA the growth will be protected from income tax and capital gains tax.

Because April was new to investing and markets had been volatile, Lucy suggested moving a proportion of the money each month from a monetary fund to an investment portfolio.  This reassured April that her funds were being invested in a cautious manner, benefiting from pound cost averaging, which spreads risk over a number of months.

Lucy also took care to ensure that the funds into which April was investing were matched to her cautious attitude to risk; Lucy will continue to review this regularly.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief is generally dependent on individual circumstances.