GENERATIONAL WEALTH

When speaking to clients about establishing a financial plan, much of the discussion at Lakeside focuses on three areas:

How can we create a fund which provides for...

  • you to use in retirement?
  • you and your family if you are unable to work due to illness or injury?
  • your loved ones if you die prematurely?

For many of our clients with structured financial planning, they accumulate wealth which they are unlikely to spend in their lifetime. For these clients, a new question arises:

  • How can I protect my estate for future generations?

The details vary from person to person, but broadly, the research on generational wealth, is clear. Inherited wealth is typically lost within just a generation or two.

GENERATIONAL WEALTH

When speaking to clients about establishing a financial plan, much of the discussion at Lakeside focuses on three areas:

How can we create a fund which provides for...

  • you to use in retirement?
  • you and your family if you are unable to work due to illness or injury?
  • your loved ones if you die prematurely?

For many of our clients with structured financial planning, they accumulate wealth which they are unlikely to spend in their lifetime. For these clients, a new question arises:

  • How can I protect my estate for future generations?

The details vary from person to person, but broadly, the research on generational wealth, is clear. Inherited wealth is typically lost within just a generation or two.

We believe that the clients who benefit most from our services are those where we look after their whole family.

Where we deal with all generations of a family, a coherent plan can be put in place to make sure that parents' assets are structured to maximise their income in their old age so that they can support themselves, whilst also ensuring that, when the time comes, any investments pass as efficiently as possible to the next generation.

Also, we can help children understand how a potential inheritance might affect their planning, and structure their finances to put any inheritance they may receive to good use. Therefore, providing them and their descendants with financial security, not just for a short time, but for generations to come.

This way, we can help to ensure that the money you have worked hard to build not only provides you with the security you need, but also provides your children and your grandchildren with the security they need in an uncertain world.

There are many ways we can help with generational financial planning, such as contributing tax efficiently into investments for grandchildren, lifetime gifting strategies and trust planning. However, a key part of 'wealth preservation' is helping the next generation to really understand the benefits and risks which come along with unearned wealth so that they can plan ahead.

For more information on Lakeside services, please contact: admin@lakesidefs.co.uk

As we approach the new tax year starting on 6 April 2026, several important changes will affect individuals and small business owners. Here's what you need to know, organised by topic so you can quickly find the information most relevant to you.

FOR ALL TAXPAYERS

Income Tax Thresholds: The Freeze Continues
The tax bands remain:

  • Personal allowance: Up to £12,570 (no tax)
  • Basic rate (20%): £12,571 to £50,270
  • Higher rate (40%): £50,271 to £125,140
  • Additional rate (45%): Above £125,140

While this might sound like no change, it actually means more people will be pushed into higher tax brackets through fiscal drag as wages increase over time.

Dividend Tax Increase

From 6 April 2026, dividend tax rates will rise by 2% (with the first £500 of dividends remaining tax-free under the dividend allowance):

  • Basic rate taxpayers: Rising from 8.75% to 10.75%
  • Higher rate taxpayers: Rising from 33.75% to 35.75%
  • Additional rate taxpayers: Remains unchanged at 39.35%

What this means for you: If you hold investments outside of ISAs or take dividends from your own company, you'll pay more tax on those dividends from April onwards.

ISA Allowances: Stable for Now

For the 2026/27 tax year, the ISA allowance remains at £20,000 for adults and £9,000 for Junior ISAs. The Lifetime ISA allowance stays at £4,000 (which counts within your overall £20,000 allowance).

Note: A reduction in the cash ISA allowance to £12,000 for those under 65 will take effect in April 2027, not 2026.

STATE PENSION

Good news for pensioners: The UK state pension will rise by 4.8% in April 2026, with the full new State Pension increasing to £241.30 per week (from £230.25). This means the annual state pension will be £12,548, bringing it very close to the personal allowance threshold of £12,570.

FOR SMALL BUSINESS OWNERS AND LANDLORDS:

  • If you earn over £50,000 (combined self-employment/property), start exploring digital accounting software now.
  • Don't wait until April to implement Making Tax Digital.
  • Review your dividend strategy in light of the tax increase.

OTHER CHANGES TAKING EFFECT IN APRIL 2026

Additional changes that may affect you include:

  • VCT income tax relief falling from 30% to 20% (affecting those investing in Venture Capital Trusts).
  • Business Property Relief and Agricultural Property Relief being capped at £2.5 million per individual, with assets above this threshold receiving only 50% relief (critical for business owners and farmers planning inheritance).
  • Corporation tax late filing penalties doubling from 1 April 2026.
  • Writing down allowance for plant and machinery decreasing from 18% to 14%, though a new 40% first-year allowance for certain main pool additions will be introduced.
  • Business Asset Disposal Relief seeing the CGT rate increase from 14% to 18% when disposing of qualifying business assets.
  • Capital gains tax annual exempt amount remaining at £3,000.

This article provides general information only. Tax rules are complex and depend on individual circumstances. Always seek professional tax advice tailored to your specific situation.

DON'T MISS OUT

Use your tax allowances before they're gone.

Every year brings an opportunity to save and invest more of our money in a tax-efficient way. But there's a catch - if you don't use these allowances before the 5th of April, they disappear forever. You cannot simply carry them over to the next tax year.

What allowances are we talking about?

The two most important ones are your ISA allowance and your pension allowance.

Your ISA allowance lets you save or invest up to £20,000 each tax year completely free of tax - no tax on growth, no tax on interest, and no tax when you take money out. Your pension allowance lets you contribute up to £60,000 each tax year (subject to your earnings) and benefit from tax relief on top - meaning the government effectively adds money to your pot.

Why does this matter for your financial plan?

Think of it this way - every year you don't use your allowances is a year of tax-free growth you can never get back. Over time, those missed opportunities can add up to a significant amount of money. Making the most of your allowances each year is one of the simplest and most effective things you can do to build long-term financial security.

The 5th of April will be here before you know it

It always seems like there is plenty of time, until suddenly there isn't. Investments and pension contributions can take time to arrange, so it's important not to leave things to the last minute. We want to make sure everything is in place for you well before the deadline.

And once the new tax year starts on 6th April - use it straight away

The sooner you put your new allowances to work, the longer your money has to grow. Starting at the beginning of the tax year rather than the end could make a real difference to your wealth over time.

Contact us today

If you'd like to make the most of your allowances before the tax year ends - or plan ahead for the new one - please get in touch with us as soon as possible. We're here to help you make the right decisions for your financial future.

SERVICES

Just some services we offer at Lakeside

At Lakeside our clients benefit from bespoke financial solutions and pro-active, ongoing service as well as access to exclusive products and services with extremely competitive pricing and charge caps. We offer the following services to all our customers:

  • Investments
  • Pensions
  • Insurance
  • Mortgages and Lending Options
  • Wills
  • Lasting Powers of Attorney

Visit the ‘Information Hub’ section of our website for further articles and updates on the portfolio of services that we offer.

First published on February 26th, 2026
Last updated on June 23rd, 2026

The information provided above is believed to be correct at the time of publication and is provided for information purposes only, it does not constitute advice. Any reference to interest rates or growth rates are examples only and are for illustrative purposes only. You should seek independent financial advice before making any decisions about your finances and financial products. We accept no liability for loss as a result of any action taken based on the information on this page where appropriate independent financial advice is not taken from Lakeside FS Ltd.