Smart Money Guides

Welcome to our latest issue. A major shift in pension taxation is set to reshape wealth-transfer planning in the UK. From 6 April 2027, unspent pension pots will no longer be exempt from Inheritance Tax (IHT) and may be taxed at 40% if your estate exceeds the IHT threshold. On page 10, we explain how this change challenges traditional strategies and why families should rethink how they draw down their retirement assets. Early preparation, including estate valuation and exploring tax-efficient options such as gifting or trusts, will be essential to protect your legacy.

‘Unretiring’ is on the rise as financial pressures and inflation erode retirees’ spending power. While some return for fulfilment, others cite loneliness or financial necessity. On page 06, we consider why retirement is becoming more flexible, with part-time roles and phased approaches gaining popularity. Proactive financial planning and exploring phased retirement options are essential to securing a comfortable and sustainable future.

The new tax year offers a fresh £20,000 ISA allowance, providing a valuable opportunity to shield your investments from capital gains and dividend taxes. Starting early maximises compounding benefits, giving your money more time to grow. Regular investing can help smooth out market volatility and maintain discipline during uncertain times. ISAs also offer flexibility, allowing gradual contributions throughout the year. Turn to page 12.

Dividend tax rates increased from 6 April 2026, making tax-efficient strategies more important than ever. The government raised dividend tax rates by 2 percentage points. The ordinary rate rose to 10.75%, and the upper rate to 35.75%, while the additional rate remains at 39.35%.

However, you don’t pay tax on dividend income within your personal allowance (£12,570 for 2026/27) or your annual dividend allowance of £500. On page 13, we explain planning options.
A complete list of the articles featured in this issue appears on pages 02 to 03.