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Widow Investment Planning

Widow Investment Planning

How can I simplify my investments, which were previously looked after by my late husband and generate additional income and minimise Capital Gains Tax?

Client Circumstances:

  • Mrs Jones aged 65.
  • She has an income shortfall of approximately £10,000.
  • Own house worth £650,000.
  • She has a share portfolio value £555,000 plus ISAs of £150,000.
  • Mrs Jones has little investment financial knowledge.
  • She already has an adequate cash reserve for emergencies.
  • She has 2 children and 3 grandchildren.

Recommended Solutions:

  • Capital Gains Tax analysis on share portfolio.
  • Sale of direct equities.
  • Use of annual CGT allowance of £11,000.
  • Consolidate ISAs onto a simplified administration platform.
  • Investment of £200,000 into a Discounted Gift Trust (DGT) to generate £10,000 pa (See Case Study IHT 2).
  • £55,000 Enterprise Investment Scheme (EIS) to defer the Capital Gains Tax.
  • £300,000 invested into a collective portfolio.
  • Use of Individual Savings Account (ISA) allowance annually from portfolio.

Benefits from advice given:

  • Simplified financial affairs:
  • Tax efficient investments:
  • Peace of mind for Mrs Jones:
  • “Income” flow of £10,000 generated from DGT.
  • Immediate Inheritance Tax (IHT) saving of £48,000 (£80,000 after seven years).
  • Deferral of Capital Gains Tax charge via EIS plus potential IHT saving of £22,000 (after 2 years), plus Income Tax relief of up to £16,500.
  • Ability to generate additional income in the future (from collectives/ISA portfolio).

Talk to us now!

Call us on either - Colchester: 01206 838400 / Ipswich: 01473 259201 or

Future Servicing

We will look to carry out a regular review of your circumstances, objectives, needs and portfolio performance to ensure all arrangements continue to be suitable and advise of any changes that may be appropriate.

This example is for illustrative purposes only, based on current legislation and tax allowances. Tax rules and regulations are subject to change.

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