Wealth Management
wealth into a number of investments is important
for managing risk and avoiding the sole reliance
for a comfortable future on the performance of a
company. And that’s why it is important for the
wealth manager or private banker to raise
awareness among owners and entrepreneurs that
their business is only one piece of the larger
picture and by neglecting other pieces they could
inadvertently be taking more risk than necessary.
While a savings account can provide a secure
return, other asset classes such as equities, bond
property and hedge funds can potentially generate
higher returns over the long term.
And in today’s economic climate, making shrewd
investment decisions is not easy. T_hat is why the
investment expertise and breadth of research
available to Coutts is perhaps now more attractive
to clients than in the past when the markets were
more buoyant and there were killings to be made
by straightforward direct investment in the stock
market. Some years ago, Coutts made the bold
decision to outsource its investment management
to some of the world’s leading fund managers and
its management has not had to look back on what
was one of the single most important strategic
decisions it has taken in recent years.
Sound financial advice and the luxury of being
able to delegate important investment decisions to
experts is an increasingly big selling point.
However, advice on investment decisions is only
one aspect of the integrated services, which
Coutts offers its entrepreneurial clients. And
clients won’t ask us to act for them, manage their
money, find a mortgage or plan their pension
unless they have absolute confidence in us. Being
busy means they have to delegate responsibility to
a trusted adviser, and that, essentially, is what we
are.
Coutts & Co, 8 Princes Parade, St Nicholas
Place, Liverpool, L3 1DL, www.coutts.com.
Coutts general enquiries; 020 7753 1000.
time to sell a business, something that is business, there is no longer any indexation or
influenced by a number of different factors. One taper relief. Instead, tax is charged at 18% on the
of the biggest influences is often the Capital difference between the purchase price and sale
Gains Tax (CGT) liability that can come into proceeds, with an allowance for the costs
effect as a result of selling. incurred in purchase and sale.
Deciding on the crucial moment to sell all or After many protests from taxpayers that the
part of a business is one of the toughest effective rate of CGT charged on those selling
decisions an entrepreneur can face. A whole small businesses had risen from 10% to 18%, the
range of dilemmas come to the fore, from government brought in an “Entrepreneurs’
market timing to minimising the tax liabilities Relief.” If you qualify for this, you can claim that
that can arise from the requirement to sell. you should pay CGT on only 5/9 of the first
Between 1998 and 2008 the Capital Gains Tax £1million of gain that you make. In practice, this
CONTACT
regime included taper relief which meant that means that you pay tax at 10% on the first
For more information about becoming
many people selling small businesses or £1million gain.
a Coutts client contact
company shares were taxed at only 10% on any Keeping all of your eggs in one basket is
john.price@coutts.com or call
gain they made. T_he last Budget changed this probably the best way to neglect your savings
0151 236 1068.
system completely. When an individual sells a and unsecure your financial future. Diversifying
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