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Case Study

Reducing tax exposure and strengthening long-term financial planning.

Simon Briggs
Guided by Simon Briggs, Chartered Financial Planner, Director & Compliance Manager

Client profile

A high-earning professional with a salary of £120,000 approached us to explore ways to reduce their growing tax burden. In addition to their income, they were receiving £4,000 in dividends annually, earning over £2,000 in savings interest, and had realised £32,000 in capital gains from a General Investment Account (GIA).

Initial position

The client was aware they were nearing the additional rate tax threshold and had concerns about losing their Personal Allowance. While they had made some investments and savings, they lacked a cohesive tax strategy. With increasing liabilities, they wanted to ensure their income and assets were working as efficiently as possible.

Their objectives

They were looking to:

  • Reduce their overall tax bill
  • Optimise investment income and allowances
  • Create a more tax-efficient financial plan with retirement in mind

Our approach

We began with a full review of the client’s income streams, tax position, and investment portfolio. Through this assessment, we identified key inefficiencies:

  • Capital gains not being realised in a tax-efficient way
  • Taxable savings producing limited net benefit
  • Underuse of pension contributions, which could reduce adjusted net income
  • Lack of use of ISAs and tax-free allowances

Strategies implemented

We developed a tax planning strategy tailored to the client’s income and goals:

  • Capital Gains Management: Recommended realising gains gradually within the Capital Gains Tax (CGT) allowance to reduce exposure
  • ISA Utilisation: Advised moving investments and savings into ISAs to shield future income and gains from tax
  • Pension Contributions: Recommended additional pension contributions to bring adjusted net income below £100,000 – restoring the Personal Allowance and reducing the effective tax rate
  • Portfolio Restructure: Shifted focus to tax-efficient, growth-orientated investments with lower dividend yields to manage taxable income

Interested in the outcome?

The outcome & client reflections

Simplifying the Complex

To help the client fully understand the impact of each recommendation, we used visual tools including:

  • Personalised tax calculations
  • Investment growth projections
  • A clear cash flow model showing the cumulative benefits over time

 

These visuals made it easier to see how each decision contributed to both immediate savings and long-term security.

The outcome

  • Immediate Impact: The client’s tax liability for the current year was reduced by over £10,000. Their Personal Allowance was restored through pension planning.
  • Long-Term Benefits: Over the next five years, they are projected to save over £30,000 in tax through improved investment and income strategies.

Client reflections

The client expressed real relief at having a clear, actionable plan in place. They now feel far more confident and in control, with a deeper understanding of how their investments and income can work together tax-efficiently. Importantly, they’ve adopted a more proactive approach to tax planning – turning a source of concern into a source of opportunity.

When you're ready, so are we

Tax shouldn’t just be a cost – it can be an opportunity. If you’re looking to reduce your liabilities and plan more efficiently for the future, we’ll help you make every part of your finances work harder.
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