The formula for successful wealth and tax management can be easily encapsulated in two words – planning and reviewing. As long as this circular process is undertaken regularly, according to your individual needs, you are sure to be capitalising on your assets in the optimal way.

The key to carrying out this process correctly is taking into account all the factors surrounding your wealth that may affect your ability to preserve it in the long term whilst reaching financial as well as other goals.

Risk Management

In building up and managing a portfolio of financial investments, including shares and funds, calculating your risk is as important as calculating your return on investment. When setting up and implementing an investment strategy, it is essential to consider your stance in relation to potential risks against potential returns. It is common knowledge that taking a higher risk yields higher potential returns, however it is imperative to familiarise oneself with all the implications of this.

A standard practice that helps minimise over-exposure and unnecessary risk is diversifying your investments. In addition, circumstances, both on a personal and on a wider financial spectrum are subject to constant change. Therefore, recalibrating your portfolio and changing your investments where necessary will also minimise your risk.

Tax planning and relocation to Malta

Undoubtedly, tax is a cumbersome liability that can take a considerable toll on your returns. In order to mitigate your subjection to taxation that could have otherwise been mitigated, it is crucial to seek professional advice from experts in the field, particularly if cross-border taxation comes into play.

In the case that you are considering moving to Malta, you would also need to determine the best time to sell your assets and acquire new ones. Furthermore, do not forget to keep an open eye for planning opportunities in Malta that might be coming your way.

Related to a current scenario, applicable and avoidable tax rates should also be considered in relation to pension and retirement planning. A specialist in this domain would be able to outline the best scheme for your unique situation based on present laws and practices. Particularly if you are a UK national, you may be aware that this year is highly significant in relation to new rules and options in this regard.

Succession planning

Extraordinary events that come unplanned should be planned for in relation to further tax mitigation and to ensure a smooth hand-over of financial affairs that will reduce much burden. In this circumstance, a wealth manager may greatly help in effectively carrying out this responsibility on your behalf and that of your successors.

Another thing to take into consideration might be UK inheritance tax, currently standing at 40% of worldwide asset value on anything over nil rate exemption.

Professional advice across all these areas cannot be stressed enough in view of the fact that taxation laws and regulations are highly subject to change and experts in the field would be in the best position to design a plan that would yield the most advantageous outcomes.