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Make the Most of Your New Tax Year Allowances

by Financial PlanningTax Planning

The new tax year is now underway, bringing a fresh set of valuable tax-free allowances.

This is a great opportunity to review your financial goals and ensure you’re making the most of the options available to you. By investing early in the tax year, your money has more time to benefit from potential growth.

Your Tax-Efficient Allowances

  • Stocks and Shares ISA: £20,000
  • Lifetime ISA: £4,000 (part of your overall ISA allowance)
  • Personal pension: £60,000 (subject to your earnings)
  • Junior ISA:£9,000
  • Junior personal pension: £3,600 (assuming no earnings)

Taking advantage of these allowances can form an important part of a well-structured financial plan. If you’re unsure how best to use them, seeking professional advice can help you make informed decisions aligned with your long-term objectives.

ISA-Reform-Where-we-are-and-where-we’re-heading.

ISA Reform: Where we are and where were heading

by Financial PlanningTax Planning

Individual Savings Accounts (ISAs) have long been one of the most popular vehicles for UK savers and investors ,offering tax-free interest, dividend income, and capital gains. For over two decades, the rules were relatively stable, but recent government budgets have introduced material reforms. The focus now is on reshaping how ISAs are used rather than scrapping the regime entirely.

ISA Landscape Today (2025/26 Tax Year)

Before we look ahead, here’s the current baseline (the position for tax year 2025/26 and 2026/27):

    • Annual ISA allowance: £20,000. this is the total you can invest each tax year across all ISA types (Cash, Stocks & Shares and Lifetime ISA).
    • Lifetime ISA allowance: £4,000 per year (included within the £20,000).
    • Junior ISA and Child Trust Fund allowance: £9,000 per year.

These rules are unchanged heading into 2026/27,meaning savers still have full flexibility now to use the £20,000 allowance in the way that best suits them.

Key Changes Coming from April 6, 2027 (Tax Year 2027/28

The most significant reforms are due to take effect from 6 April 2027, and they will change how the ISA allowance can be used:

1. Cash ISA Limit Reduced for Under-65s From April 2027:

    • Under-65s will be limited to £12,000 a year into cash ISAs (previously £20,000).
    • The overall annual ISA allowance stays at £20,000, but the remaining £8,000 must be placed into other ISA types (e.g., Stocks & Shares)
    • If you’re 65 or older, you can continue to put up to the full £20,000 into a cash ISA.

This reform is designed to encourage savers to invest more in assets rather than hold cash, in line with the government’s broader strategy to shift capital toward productive investment markets.

2. Lifetime ISA Transition and New First-Time Buyer Product

The current Lifetime ISA (LISA), popular with first-time buyers and for retirement savings will not disappear immediately, but the government is consulting on a re-designed product for first-time buyers.

    • The new product aims to remove the penalty on withdrawals when used to buy a house, giving savers more flexibility.
    • You’ll still be able to open and contribute to existing LISAs until the new product launches.

This reflects a shift in policy thinking: focusing the bonus more tightly on homeownership rather than dual goals (retirement and house purchase).

What This Means for Savers & Investors

Here’s how these reforms could affect you:

1. Cash heavy savers

    • If you prefer low-risk interest-bearing accounts, you’ll need to reassess strategy. With the cash ISA cap falling to £12,000, you might choose to put remaining allowance toward stocks & shares or wrap cash into a Stocks & Shares ISA (though that entails investment risk).

2. Longer term investors

    • Investors eyeing long-term growth might benefit from shifting more into equity-linked ISAs over time to make the most of the full £20,000 allowance. This aligns with the government’s intent behind the reform.

3. Planning Ahead Is Key

The next couple of tax years, especially 2025/26 and 2026/27, offer a final window to use the current cash ISA allowances fully before the new cap arrives in 2027/28 tax year.
The following risk warnings will need to be added to this section, in the same font/size as the main text on the blog:

ISA investors do not pay any personal tax on income or gains, but ISAs may pay unrecoverable tax on income from stocks and shares received by the ISA managers. Tax treatment varies according to individual circumstances and is subject to change. The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.

You will incur a lifetime ISA government withdrawal charge (currently 25%) if you transfer the funds to a different ISA or withdraw the funds before age 60 and you may therefore get back less than you paid into a lifetime ISA.

By saving in a lifetime ISA instead of enrolling in, or contributing to an auto-enrolment pension scheme, occupational pension scheme, or personal pension scheme:

       (i) you may lose the benefit of contributions from your employer (if any) to that scheme; and
      (ii) your current and future entitlement to means tested benefits (if any) may be affected.

Middle-East-conflict-–-what-investors-need-to-know

Middle East conflict – what investors need to know

by Financial PlanningTax Planning

Geopolitical tensions in the Middle East regularly dominate global news and can understandably raise concerns for investors. However, while conflicts in the region can create short-term market volatility, history shows that their long-term impact on diversified investment portfolios is often more limited than headlines may suggest.

For UK investors, understanding how geopolitical events affect markets can help maintain perspective and avoid reactive decisions that could undermine long-term financial plans.

Why the Middle East matters to global markets

The Middle East plays a crucial role in global energy markets, with several major oil-producing nations located in the region. As a result, conflicts or rising tensions can lead to concerns about disruptions to oil supply or shipping routes.

When markets anticipate potential supply disruption, oil prices can rise. This can influence global inflation expectations and, in turn, affect interest rate outlooks, government bond markets, and equity sectors such as energy, transport and manufacturing.

For UK investors, movements in global energy prices can also feed into domestic inflation, which may influence decisions by the Bank of England and the broader economic outlook.

How markets typically react to geopolitical events

Financial markets tend to react quickly when major geopolitical events occur. Initial uncertainty often leads to short-term volatility in equity markets, currencies and commodities.

However, history suggests that these reactions are often temporary. Once investors gain greater clarity about the scale of the conflict and its economic implications, markets frequently stabilise.

For long-term investors, this highlights the importance of maintaining discipline and avoiding portfolio changes based purely on short-term news flow.

Potential investment impacts

While the overall market impact may be limited over the long term, some areas can be more directly affected.

Energy markets

Energy companies can sometimes benefit from rising oil prices if supply concerns push prices higher. However, higher energy costs can create pressure for industries that rely heavily on fuel.

Inflation and interest rates

If oil prices rise significantly, this can contribute to higher inflation globally. In the UK, inflation pressures may influence interest rate decisions by the Bank of England, which can affect both equity and bond markets.

Defence and security sectors

Periods of heightened geopolitical tension can lead to increased defence spending globally, which may support companies operating in the defence and aerospace sectors.

Safe-haven assets

During periods of uncertainty, investors sometimes move towards assets perceived as safer, such as gold or high-quality government bonds.

Why diversification remains important

One of the most effective ways to manage geopolitical uncertainty is through diversification. Spreading investments across different asset classes, sectors and geographic regions can help reduce exposure to any single event.

A well-diversified portfolio is designed to withstand a range of economic and geopolitical scenarios. While some regions or sectors may experience short-term volatility, others may remain resilient or even benefit.

For many investors, maintaining a balanced and globally diversified portfolio remains the most effective way to navigate uncertain environments.

Focus on the long term

Periods of geopolitical tension can feel unsettling, particularly when markets react sharply in the short term. However, reacting emotionally to headlines can lead to decisions that disrupt carefully constructed financial plans.

Investors who stay focused on long-term objectives, maintain diversified portfolios and follow a disciplined investment strategy are often better positioned to navigate periods of market uncertainty.

What investors should do now

Rather than reacting to headlines, investors may benefit from focusing on a few key principles:

  • Maintain a long-term investment perspective
  • Ensure portfolios remain well diversified
  • Avoid making reactive decisions based on short-term market movements
  • Review investment strategies periodically with a financial adviser

A well-structured financial plan is designed to account for uncertainty, including geopolitical events that cannot be predicted.

Important information

This article is for general information only and does not constitute financial advice. The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested. Past performance is not a reliable indicator of future results.

The information contained in this article is based on current understanding of market conditions and may change. Investors should seek personalised financial advice before making investment decisions.

Digby Offices-11

Preparing for Tax Year End Planning (UK Guide)

by Financial PlanningTax Planning

The UK tax year ends on 5 April each year. A little planning before this date can help you reduce your tax bill, use valuable allowances, and avoid last-minute stress.
Here’s a simple guide to getting organised before the deadline.

1. Use Your ISA Allowance

Each tax year, you can invest up to £20,000 into ISAs. This allowance doesn’t roll over. You could consider:

  • A Cash ISA
  • A Stocks & Shares ISA
  • A Junior ISA for children

If you don’t use your allowance before 5 April, you lose it. ISAs remain one of the most tax-efficient ways to grow savings, as investments are free from income tax and capital gains tax.

2. Review Pension Contributions

Pension contributions can reduce your taxable income and may give you valuable tax relief. For most people, the annual allowance is £60,000 (subject to earnings and tapering rules). Contributions must be paid before 5 April to count for this tax year.

Making a pension contribution could:

  • Reduce higher-rate tax liability
  • Help bring income below key thresholds
  • Boost long-term retirement savings

If you’re unsure how much you can contribute, guidance from HM Revenue & Customs can clarify the current rules or speak with us.

3. Consider Capital Gains Tax (CGT)

Everyone has an annual Capital Gains Tax exemption. If you’ve sold investments or assets this year, check whether you’ve used it.

Before year end, you might:

  • Realise gains within your allowance
  • Offset gains with losses
  • Transfer assets between spouses to use both allowances

Tax rules can change, so planning ahead is important.

4. Make Use of Inheritance Tax (IHT) Gifting Allowances

You can give away up to £3,000 each tax year free from inheritance tax. If unused, you may be able to carry forward one previous year’s allowance.

Other small gift exemptions may also apply. Regular gifting from surplus income can also be effective, if structured correctly.

5. Dividend and Income Planning (Business Owners)

If you’re a company director or business owner, review:

  • Dividend payments
  • Salary levels
  • Pension contributions from the business

Small adjustments before 5 April can make a significant difference to your overall tax position.

6. Check for Tax Traps

Some common thresholds to watch:

  • The £100,000 income level (where personal allowance starts reducing)
  • Child Benefit high-income charge
  • Pension tapering for very high earners

Even a small pension contribution before year end can sometimes restore lost allowances.

7. Don’t Leave It Too Late

Providers can become very busy in March and early April. ISA transfers, pension contributions, and investment transactions can take time to process.

Starting early gives you more options and reduces the risk of missing deadlines.

Final Thoughts

Tax year end isn’t about rushing into decisions , it’s about making sure you don’t waste valuable allowances.

A short review now could:

  • Reduce your tax bill
  • Increase long-term savings
  • Improve overall financial efficiency

If you’d like help reviewing your position before tax year end, speak with us to ensure everything is structured correctly and in line with current rules.

Intergenerational-financial-planning

Intergenerational financial planning: “We’ll deal with it later” Usually means “too late”

by Financial Planning

Let’s be honest.

Most people don’t grow up dreaming of meetings about pensions, inheritance tax, or long-term financial planning. For many in the next generation, financial advice sits somewhere between doing a tax return and organising the garage, important, but very easy to put off.

And yet, one day, it suddenly matters.

The great wealth transfer

Over the next couple of decades, a huge amount of wealth will move from one generation to the next. Property, pensions, investments, businesses etc.

The problem?
Many people receiving that wealth:

  • Don’t fully understand it
  • Haven’t been part of the conversation
  • Don’t have a relationship with an adviser they trust

So, what happens? They switch advisers… or worse, stop taking advice altogether.

Not ideal when real money and real decisions are involved.

Why the next generation switches off.

Younger adults don’t avoid advice because they’re careless, they avoid it because it often feels:

  • Too formal
  • Too technical
  • Too “this will matter when you’re 65”

Add in a healthy dose of jargon and a long PDF, and disengagement is almost guaranteed.

At Digby Associates, the average age of our advisers is 36.

That means:

  • We remember renting, student loans, career changes and childcare costs
  • We know that life rarely follows a neat financial timeline
  • We’re used to explaining complex things in plain English (without sounding like a textbook)

We don’t believe financial planning should feel like a lecture, it should feel like a conversation.

Conversations are more relaxed

Questions feel easier to ask (including the “basic” ones)

Financial planning feels relevant now, not “one day”

It also means we’re naturally focused on long-term relationships. We’re not just planning for the next review , we’re planning for the next 20 or 30 years.

Intergenerational planning without the awkwardness

Intergenerational financial planning doesn’t mean forcing family meetings around the kitchen table (unless you want to).

Done well, it’s about:

  • Gradually involving the next generation
  • Building confidence before responsibility
  • Making sure everyone understands what exists and why
  • Avoiding nasty surprises later

And yes, it’s possible to talk about money without it being uncomfortable.

Planning that grows with you

Families want to know that:

  • Their children won’t feel lost when wealth transfers
  • Decisions won’t be rushed under pressure
  • Advice will still feel relevant years from now

With an adviser team whose average age is 36, Digby Associates is built to grow with your family, not just advise one generation.

Disclaimer: Estate Planning and Inheritance Tax Planning are not regulated by the Financial Conduct Authority.

Approver Quilter Financial Services Ltd. January 2026

A person signing a document with a pen

What Is The 2026 Renters Right Act, And What Could It Mean For You?

by Financial Planning

The Renters’ Rights Act 2025 is a landmark piece of legislation in England designed to provide greater security, stability, and rights to approximately 11 million private renters. While it received Royal Assent on October 27, 2025, its primary reforms take effect in stages starting May 1, 2026.

It’s key objective is to provide tenants with greater security by abolishing “no-fault” Section 21 evictions, ending fixed-term tenancies for periodic ones, and banning rent bidding wars, while introducing stronger standards like the Decent Homes Standard and rules against discrimination.

This means more stable housing, easier challenges to unfair rent hikes (limited to once yearly), and better quality homes, though landlords can still evict for valid reasons like significant rent arrears or anti-social behaviour.

Key Changes:

  • No More “No-Fault” Evictions: Landlords need a valid reason (like rent arrears, property damage) to evict, ending easy Section 21 evictions, giving tenants more security.
  • Periodic Tenancies: All tenancies become month-to-month (or week-to-week), replacing fixed terms, allowing tenants to give notice (usually two months) to leave.
  • Rent Caps & Fairness: Rent increases are limited to once a year with two months’ notice; tenants can challenge unfair increases at a tribunal.
  • Ban on Rental Bidding Wars: Landlords must advertise a clear price and can’t accept offers above it, stopping pressure for higher bids.
  • Protection Against Discrimination: It’s illegal for landlords to refuse tenants receiving benefits or with children.
  • Improved Home Standards: The Decent Homes Standard and Awaab’s Law will require landlords to fix hazards like damp within set times, says The Law Society and BBC.
  • New Landlord Database & Ombudsman: A database will track landlords, and an Ombudsman will help resolve disputes impartially.
  • Renting with Pets: Landlords can’t unreasonably refuse tenants with pets.

What This Could Mean For You:

  • More Stability: Less fear of sudden eviction, allowing you to plan longer-term.
  • Easier to Move: Periodic tenancies and reasonable notice periods simplify ending a tenancy.
  • Fairer Rent & Conditions: Greater power to contest high rents and demand safe housing.
  • Support for Families/Benefit Recipients: Easier access to rentals for those with children or on benefits.

Longer-Term Reforms (2026–2028 and beyond)

  • Private Rented Sector (PRS) Database: A new national register of all landlords and properties in England will roll out regionally starting in late 2026.
  • Landlord Ombudsman: A new mandatory ombudsman service will be established to resolve disputes fairly without going to court. It is expected that this will be fully operational by 2028.
  • Property Standards: The “Decent Homes Standard” will be applied to the private sector to ensure homes are safe and warm. “Awaab’s Law” will also be extended to the private rental sector, setting strict timeframes for landlords to fix serious hazards like damp and mould.

In summary:

  • Tenants will gain significant protection from arbitrary eviction and more flexibility to move by giving two months’ notice. They can also challenge poor conditions or unfair rent hikes more effectively.
  • Landlords will need to move to a more evidence-based management style. Evictions will require proving a valid legal ground in court. Non-compliance with the new rules can result in civil penalties of up to £7,000 for initial breaches and up to £40,000 for serious or repeat offenses.
business brain storm meeting presentation Team discussing roadmap to product launch, presentation, planning, strategy, new business development

Why workplace sexual harassment training is a financial investment

by Business AdviceFinancial PlanningUncategorized

This year, Digby Associates undertook training with SARSAS in Understanding Sexual Harassment at Work, as part of our continued efforts to create a safe workplace where our staff can thrive.

Why the training is a financial investment

A recent survey conducted by Unite1 found that 56% of women have experienced some form of sexual harassment at work and they labelled sexual harassment as endemic across all sectors.

The Worker Protection Act 2023, which came into effect in October 2024, states that employers must take ‘reasonable steps’ to prevent sexual harassment in the workplace, one reasonable step being workplace training.

In 2021 the government estimated that the average case of a pre-court settlement or tribunal compensation for sexual harassment ranged between £10,000 to £45,0002. Now, under the Worker Protection Act, an employment tribunal has the power to increase compensation by up to 25% if it finds that an employer has breached their duty to prevent sexual harassment.

The potential legal costs and reputational damage, alongside the impact that an unhealthy workplace culture can have on worker morale, innovation, output and staff turnover rates all demonstrate the urgent moral and financial need to invest in training to create safe workplaces.

Why we chose SARSAS to deliver our training

SARSAS is a local rape crisis centre and Bristol based charity, founded in 2008, that provides trauma-informed support to thousands of survivors of rape and sexual abuse every year.

SARSAS also strives for a world without sexual violence, which is why they offer training in a variety of topics, and we felt that their expert knowledge and trauma-informed approach to the training was the right fit for helping us to approach this sensitive but important issue.

You can find out more about SARSAS here www.sarsas.org.uk

The impact of the training

The training was very engaging and was tailored to us in the financial sector, giving our team the tools to recognise sexual harassment and feel confident to speak up about it. It encouraged the team to reflect on how we can all respect boundaries and approach our work and interactions with colleagues and clients in this respectful and conscientious way.

We feel that having undertaken this training sets us apart from other advisers, not only by creating a workplace where our staff can thrive and give our clients the best service, but also to give pertinent financial advice to our business clients, enabling them to create resilient workplaces and avoid costly legal expenditures. 

1 Unite’s Zero Tolerance to Sexual Harassment Survey 2025 Sexual harassment endemic in UK workplaces, landmark Unite survey finds

2 The Business Cost of Workplace Sexual Harassment & Workplace harassment impact assessment: final stage, October 2021 – part 2 of 2 (evidence base) – GOV.UK

Hands holding a paper family

Have You Forgotten About Your Child Trust Fund? Here’s How to Find It

by Financial Planning

What is a Child Trust Fund?

A Child Trust Fund (CTF) is a special savings account the UK government gave to children born between 1 September 2002 and 2 January 2011. The government gave parents a voucher worth £250 or £500 (depending on the family’s income) to open the account, and family members could add more money over time.

The idea was to give every child a little nest egg to help them when they turned 18. But now, many young people don’t even know they have one  and millions of pounds are sitting unclaimed.

Who Can Claim the Money?

If you were born in the UK between 2002 and 2011, you might have a Child Trust Fund in your name  even if your parents never opened the account. In that case, HMRC would have opened one for you.

You can access the money from age 18. If you’re already 18 or older, you can withdraw it. If you’re 16 or 17, you can take control of it and decide what to do with it when you turn 18.

Parents or guardians can also find the account for children under 18.

How Much Money Might Be in There?

The amount in the fund depends on how much was added and how it was invested. Some accounts may have grown to £1,000 or more, especially if family added money or it earned good returns.

Even if it’s just the government’s original payment, it’s still free money!

How to Find Your Child Trust Fund

If you don’t know where your CTF is, don’t worry  the government has made it easy to find out.

You can use the official government tool here:

Find a Child Trust Fund – GOV.UK

To use the service, you’ll need:

  • Your National Insurance number
  • A Government Gateway account (you can create one if you don’t have it)

Once you’ve logged in, HMRC will search for your account and tell you where it’s held  usually with a bank or investment company. From there, you can contact them to access or manage your money.

Don’t Miss Out!

More than one million people haven’t claimed their Child Trust Funds yet  and that could be hundreds or even thousands of pounds sitting unclaimed.

So, if you (or your child) were born between 2002 and 2011, it’s worth taking a few minutes to check. It’s quick, free, and it could give you a nice financial boost!

A mature couple sat on the sofa during a meeting with a financial planner

Why working with a Financial Adviser can be one of the best decisions you make

by Financial Planning

When it comes to managing money, many people rely on instincts, internet research, or well-meaning advice from friends and family.

With life getting more complex and financial decisions having bigger consequences, there’s growing value in having a professional in your corner. That’s where a qualified financial adviser can make a real difference.

Here’s why working with a UK financial adviser isn’t just for the wealthy, it’s for anyone who wants to make smarter, more confident financial choices.

1. Clarity and confidence in your finances

Most people have multiple financial goals: saving for retirement, helping children onto the property ladder, protecting loved ones, or even just getting a handle on everyday budgeting. A financial adviser helps you prioritise these goals, understand what’s possible, and build a realistic plan to get there.

You walk away knowing where you stand and what steps to take next. That clarity brings peace of mind.

2. Regulated advice you can trust

UK financial advisers are registered with the Financial Conduct Authority (FCA)”meaning they’re held to high professional standards.

3. Tax Efficiency and Long-Term Planning

One of the biggest advantages advisers offer is helping you use tax allowances effectively, especially around pensions, ISAs, inheritance, and capital gains. Over time, this can make a big difference to your wealth.

Advisers also ensure that your plans are sustainable. Whether it’s your retirement income, passing on wealth, or managing risk, they stress-test your strategy and adjust it over time.

4. Avoiding Mistakes That Cost You More

Emotions often drive financial decisions such as pulling investments when markets fall or delaying retirement planning until it’s almost too late. An adviser acts as a buffer between you and poor decisions. They bring experience, perspective, and discipline.

In fact, studies by organisations like Vanguard suggest that working with a financial adviser can add real value, not just through better investments, but by helping clients avoid common pitfalls.

5. It’s Not Just About the Numbers

The best financial advisers don’t just focus on spreadsheets. They take time to understand your values, your family, and what really matters to you. That human connection combined with expertise is what makes great financial planning so valuable.

Final Thoughts

Engaging with a financial adviser is not about giving up control of your money, it’s about gaining a trusted partner to help you make better decisions. Whether you’re just starting to build wealth or preparing for retirement, good advice pays off financially and emotionally.

If you’re curious about how advice could benefit you, start with a no obligation conversation.

Risk warning: Please note that estate planning and Inheritance Taxation advice is not covered by the FCA.