Deed of Variation
Want to give more to family or charity?

When someone passes away, their estate is usually distributed according to their Will or the rules of intestacy, but it can in fact be a good idea for the will outcome to be tweaked. If the beneficiaries want to make some changes, that’s where a Deed of Variation (DoV) comes in.

A DoV allows beneficiaries to redirect their inheritance, whether money, investments, property, or other assets to someone else or even a charity. It’s as if the deceased had made that decision themselves. This can be useful for inheritance tax (IHT) planning, family arrangements, or charitable giving.

Here are the key points:
• Timing matters: It must be completed within two years of death.
• Tax benefits: If more than 10% of the net estate goes to charity through a DoV,
the IHT rate on the taxable portion drops from 40% to 36%.
• No seven-year rule: Normally, lifetime gifts trigger a “potentially exempt transfer (PET)” requiring the individual making the gift to live seven years for IHT exemption. A DoV avoids that.

Because it’s a formal legal document, there are rules:

• It must be in writing, signed, and irrevocable.
• It should clearly state of course and what’s changing and who benefits.
• Each beneficiary can vary their share, but only once.
• You only need to send the DoV to HMRC if it changes the IHT payable on the
estate.
• It will incur costs to create.

A DoV may be a smart way to manage family wishes and reduce future tax depending on the circumstances, but it’s important to get it right and so legal advice will be needed.

This information is purely for information purposes and should not be construed as advice. For advice based on your individual needs and circumstances please contact your Financial Planner. Tax rates, reliefs or allowances are correct for 2025/26 tax year. These are subject to change.

By Andy Robinson |  January 2026

Blitz the paperwork drawer
What to keep or ditch

There’s something deeply satisfying about getting organised, whether it’s creating a budget with saving goals or decluttering and improving your overflowing filing system (or just tidying the sock drawer!)

Being on top of your personal finances is a lifelong project, the same as exercising or eating well.

If your home filing system is bursting at the seams, it might be time for a paperwork purge. Doing your life admin like a pro can really pay off. Firstly, make sure you dispose of any sensitive paperwork properly with a crosscut paper shredder to protect your personal data.
Also, ensure digital copies are stored securely, with encryption and backups/

Keep forever
• Birth, marriage and death certificates
• Pension documentation
• Life Insurance original policy document
• Your Will (with nothing stapled or clipped to it!)
• Letter of Wishes (include funeral plans)
• Qualifications
• Trust deeds

Keep until expiry
• Passport, driving licence

Keep for five years
• Business income records used to fill in your tax return

Keep for one year
• Payslips
• Utility bills

Best stored digitally
• Bank, Investment, Pension statements,
• Mortgage agreements
• Insurance policies
• Powers of Attorney
• House deeds
• Credit card, mobile phone records

This information is for general purposes only and does not constitute financial advice.

Pensions and Inheritance Tax Update

What are we asking clients to consider?

1.Tax-free lump sums
If you have any available tax-free lump sum, you might consider withdrawing some or all of it and reinvesting into a qualifying investment that becomes IHT-exempt after two years. This choice will depend on your financial situation and risk appetite, so it’s important to get the right advice.

2.Gifting surplus pension income
If your pension withdrawals exceed your income needs, consider drawing taxable income and giving it to children, grandchildren or other family members. The seven-year clock is ignored if this gift doesn’t financially disturb your lifestyle, is a regular payment and leaves your estate immediately.

3.Life Assurance planning
If you’re in good health, drawing income from your pension to fund the premiums towards a Life Assurance policy, could be a tax-efficient way to provide your beneficiaries with a lump sum to help cover any IHT liability.

4.Spending your wealth
A popular and often overlooked strategy is simply to enjoy your wealth by spending it! We often use the phrase ‘don’t let the tax tail wag the dog’, which suggests if drawing pension income means paying higher-rate tax, it may still be worthwhile if it enhances your lifestyle and reduces your estate. Our Cashflow Planning tool can review your data and deliver a snapshot of the future to help you shape your spending plans.

5.Planning before your 75th birthday
If you are over 75, your beneficiaries will still need to pay income tax at their marginal rate on pension withdrawals made after your death. Withdrawing tax-free lump sums before you reach your 75th birthday has become a more relevant part of effective tax planning.

6.Residential Nil Rate Band (RNRB)
The RNRB is £175,000 per person but it tapers by £1 for every £2 that the estate value exceeds £2 million. Including pension funds could push some estates above £2 million, reducing or eliminating their RNRB entitlement.

By Phil Harper |  September 2025

A Guide to Crypto

Cryptocurrency has been around for more than a decade, with the oldest, Bitcoin, making its debut in 2009. Initially dismissed as a fad, it has since gained serious attention from investors, governments, and central banks.

During his presidential campaign, Trump declared his ambition to make America the “crypto capital of the planet.” Since Trump’s election, the cryptocurrency market has experienced significant growth and volatility. Initially, there was a surge in investment and optimism, with Bitcoin and other cryptocurrencies reaching record highs. However, the market has seen fluctuations, with some cryptocurrencies losing up to 45% of their value this year.  

Last year, investments in cryptocurrency index funds in Europe and America surged from $48 billion to $146 billion, according to Morningstar, with most of the increase occurring in the last months of 2024. This surge in investment reflects the heightened interest and optimism in the crypto market driven by Trump’s pro-crypto policies and promises of a clearer regulatory framework. However, such funds are banned in the UK.

The Rise of Crypto Ownership
In the UK, about 7 million people own cryptocurrency, up from around 5 million in 2022, according to the Financial Conduct Authority (FCA). The average holding is worth £1,842. The FCA describes crypto as “high risk and speculative,” warning that investors should be prepared to lose all their money. Despite this, those who have stuck with crypto have seen significant rewards. Since the beginning of 2023, the value of Bitcoin has surged by 515%, compared to a 14.6% rise in the FTSE 100 index of leading UK shares.

What is Cryptocurrency?
Cryptocurrency is digital money not issued by a central bank. It is based on a mathematical formula that creates a finite number of coins, with transactions recorded on a blockchain. Many cryptocurrencies, including Bitcoin, are designed to have a finite supply. New coins enter circulation through “mining,” where computers solve complex mathematical problems. About 19.5 million of the maximum 21 million Bitcoins have already been mined. This limited supply means the value cannot be manipulated like traditional currencies.

Investing in Crypto
To invest in cryptocurrency, you need to go through an intermediary firm such as Etoro, Coinbase, or Crypto.com. These platforms function similarly to investment platforms like Hargreaves Lansdown or 7iM. There are usually fees for buying or selling crypto, and a currency conversion charge since investments are made in dollars. For example, Etoro charges 1% to buy or sell, with a currency conversion fee of 0.75%.

Spending Crypto
To spend crypto in the real world, it typically needs to be converted into cash first, which involves fees. However, digital banking firms like Revolut allow users to buy and spend cryptocurrency directly through their app. By changing the debit card settings, payments can come from your crypto holdings, with Revolut converting it into a currency like sterling.

Should You Invest?
Investing in crypto should not be driven by the fear of missing out. Since September 2025, Bitcoin has been nearly five times as volatile as US stocks, and Ethereum has been nearly ten times as volatile. Andrew Oxlade from Fidelity International warns that potential investors need to consider whether they can handle the volatility.

Tax Implications
Gains from crypto assets are subject to capital gains tax (CGT) at 18% for basic-rate taxpayers and 24% for higher or additional-rate payers. You can make up to £3,000 a year from capital gains before any tax is due. Last year, HM Revenue & Customs sent “nudge letters” to those suspected of failing to pay, warning of penalties on top of any tax due.

Halving Events
Bitcoin undergoes a halving event approximately every four years, which increases scarcity and potentially makes the coins more valuable. The last halving event was in April 2024, with the next expected in the spring of 2028.

Investing Without Buying Crypto
If you’re looking to invest in crypto without directly buying it, consider through funds or companies whose share prices are closely linked to crypto assets.  For example, MicroStrategy and Coinbase. MicroStrategy’s shares have soared by 80.88% over the past year, thanks to its substantial Bitcoin holdings. Coinbase, a major crypto trading platform, has seen its shares rise by 160% in the same period. Another option is the Blockchain ETF, which invests in companies involved in blockchain technology and has shown promising returns. These investments offer exposure to the crypto market without the need to buy and manage digital currencies directly.

Remember, while the potential for high returns is enticing, the crypto market is highly volatile and speculative. Always do thorough research and consider your risk tolerance before diving in.

By Jack Smith |  April 2025

Pension Funds – Long Term Reset?

Was it a big surprise when the Chancellor recently announced that pension funds will form part of our estates for Inheritance Tax purposes from 2027? I guess the answer is, not really.  

This has been muted for quite some time and although the change is quite hard for some to swallow, there is some logic behind the argument that pension funds should exist to deliver income in retirement, rather than being morphed into an inheritance tax saving scheme for the wealthy.

From a financial adviser’s perspective, we have had to deal with many legislative changes over the years, some good, some not so good, but it’s fascinating how quickly the changes seem to get accepted and we move on to find new ways to deal with our financial affairs as tax efficiently as possible.

In fact, over the next few years, before the new regulation becomes effective, if our advice to clients is – try to spend as much of your pension as possible, that might not be the most disappointing advice they’ve had from their adviser! Of course, ‘spending’ might include ‘giving away’ and again, this might open up a range of new opportunities to mitigate against inheritance tax, whilst potentially observing their loved ones enjoying some of the family wealth.

Although the final clarification of the rules is not expected until Q3 in 2025, we are already building some interesting solutions for clients to consider, and the conclusions might not be so bad after all.

By Philip Harper  |  February 2025

Autumn Budget 2025

Please read our summary of the Autumn Budget 2025, which we hope you find helpful.