SFIA solutions

In an ideal world, the earlier you start the better.

It is a common misconception that it is too late to start now that your children have started school, but at SFIA we believe that it is rarely ever too late to make a start.

In practice, when your children arrive and as they grow and develop, family income often reduces and extra demands are put on it. SFIA can design plans that spread the cost beyond the schooling period which makes both the fees more affordable and helps restore the standard of living.

Do you want to discuss your requirements with SFIA?

If you wish to discuss your requirements, please contact SFIA on 01628 566777 or email webenquiry@sfia.co.uk today and see how we could help to manage your finances more effectively – we look forward to hearing from you.

Planning solutions normally comprise three elements: short-term cash flow resolution, tax-efficient wealth generation and assurance of continuous education.

Cash flow

Where funds can be made available from equity in a property, this is the most efficient way to borrow capital. Flexible mortgages enable cash withdrawals when funds are required to cover fees, thus minimising the overall cost.

To find out more about our mortgage services, please visit https://www.sfia.uk/mortgages.html.

Wealth generation

Tax relief is not available on school fees directly, but there are other methods that can be structured into a plan to reclaim tax.

Investments and deposits can be arranged which do not produce any taxable income or in assets that produce income partially exempt from tax. In this way, it is possible to reduce taxable income and therefore reduce the tax bill.

Instead, investment can be structured to take advantage of the favourable tax position where investments are subject to Capital Gains Tax rather than Income Tax.

To find out more about our investment planning services, please visit https://www.sfia.uk/investment.html.

School Fees Pension Plan

Throughout our extensive history, SFIA has prided itself in making school fees less taxing for our clients through the use of educational trusts between 1970 and 1990 and more recently by the development of our School Fees Pension Plan.

For those that qualify, this is often the best option. You may build up a substantially greater pension fund and pay off your school fees. The additional tax relief gained can often be more than the original school fees!

Not everyone wishes or is permitted to use a traditional pension fund to build up additional assets for retirement. In that case, self invested pensions may be more appropriate.

Your portfolio of assets may include:

  • Direct investments in shares
  • Insurance company funds, investment trusts and unit trusts
  • Government and ‘blue chip’ corporate bonds
  • Commercial property and Real Estate Investment Trusts (or similar)
  • Cash

Self invested pensions offer investors all the advantages of a standard pension plan with the added flexibility that:

Contributions can be made when the member requires
Investments are fully controllable by the member (within broad guidelines set down by the Government)
Benefits can be taken in a highly flexible way to suit the member.

Self invested pensions put you in the driving seat.

For more details, see an illustrated example of a School Fees Pension Plan in the Case Studies section of our Website.

Other tax planning solutions

There are other strategies to reduce or recover income tax, capital gains tax and inheritance tax the proceeds of which can be put into your school fees plan.

Higher rate tax strategies

For parents fortunate enough to be paying higher or additional rates of tax, your personal allowance is eroded once income exceeds £100,000. These generous reliefs are being given to attract private investment to stimulate the economy, and at SFIA we can assist with these investments.

To find out more about our tax planning services, please visit https://www.sfia.uk/taxplanning.html.