Discretionary Management

Your investments will be managed entirely by our professional Portfolio Management Team. We will buy and sell investments on your behalf but always adhering to your investment requirements and attitude to risk, which will be clearly stated in our client questionnaire at the start of our relationship. Any income generated on investments can either be retained for reinvestment or paid out as required. We will report performance periodically and we will assess your ongoing expectations and needs so that the portfolio adapts and changes with your lifestyle over time.

Tax Efficient Investments

There have been a number of major changes in personal taxation over the last decade. With the continuing rise in the rate of personal taxation we believe that it is important for clients to maximise use of tax efficient solutions which are available under present tax legislation.

We have considerable experience in the management of ISA, SIPP, SSAS and IHT AIM portfolios.


An Individual Savings Account (“ISA”) is a UK savings account on which the return is tax-free, and which need not be declared in the investor’s tax return. There are two components: cash, and stocks and shares. S&T only offer “Stocks and Shares” ISA’s.

At S&T we believe that it is our responsibility to maximise returns on our clients’ investments, and therefore regard the ISA accounts which we operate as part of a client’s overall portfolio. Many people view an ISA as a standalone product but, with careful management and consideration, the tax advantages can be incorporated within an overall portfolio strategy.

By utilising the allowance each year investors are able to shelter a sizeable amount from taxation which often comes in extremely useful upon retirement, when the investment requirement might change from being one of capital growth to that of income.

With effect from 5th August 2013, shares quoted on the Alternative Investment Market (“AIM”) became eligible to be held within ISAs. Certain shares quoted on AIM can be exempt from Inheritance Tax upon death if held for a period of more than two years.

SIPPs and SSAs

Self Invested Personal Pensions (“SIPPs”), provide a tax efficient way of making provision for retirement. Clients are free to make their own investment decisions, within the range of investments allowed by the SIPP administrator.

Usually the government will boost your contributions and not charge any UK capital gains or further income tax on your SIPP earnings. This can be used to build up a useful income on retirement with the option also to take out, subject to present legislation, part of the fund as a tax free capital sum on retirement.

Small Self Administered Schemes (“SSAS”) are occupational pension schemes sponsored by an employer. They are established under trust for at least one employee. These structures are very complex and membership is restricted to company directors and members of their families. Normally such schemes have fewer than 12 members, all of whom are normally appointed as trustees. They can invest in a much wider range of assets than SIPPs, including unquoted investments, authorised loans to the employer and the purchase of commercial property, which can then be leased back to the employer.

Inheritance Tax AIM Portfolio

Inheritance Tax (“IHT”) is currently levied at a rate of 40%. Our Inheritance Tax Portfolio provides individual investors with the opportunity to obtain full IHT relief after only two years.

The portfolio comprises companies which qualify for Business Property Relief (“BPR”). Under current tax rules private investors can benefit from unlimited exemption from IHT if they have held shares in a qualifying company for two years at the date of death.

All services quoted on the Alternative Investment Market (“AIM”) are treated as high risk investments.

We have successfully researched and created a portfolio of companies which we believe will qualify for business property relief. As these companies are generally smaller in size and hence have a higher risk we seek to manage that risk by having a well diversified portfolio. Additionally, only companies that have paid a dividend for the last 2 years are included.

Capital invested in an AIM portfolio can be withdrawn at any time and AIM portfolios can be included in an ISA.

You should be aware that smaller companies are generally considered to be a higher risk than larger companies. Before investing we will discuss with you whether this portfolio is suitable for you.

Execution Only Dealing Service

We can also provide an Execution Only service for clients where we simply buy or sell investments on their behalf when instructed to do so.

We can provide access to UK and overseas equity markets and various asset classes and our service is ideal for clients who want to talk to a qualified broker before executing a trade.

Nominee and Safe Custody

With stock exchange transactions now settling in two working days, it is almost impossible for clients to return the paperwork in time for settlement unless special arrangements are made in advance. This is further complicated where clients have overseas holdings where settlement is often more difficult.

We offer a full Nominee Service through our external clearing agents, Pershing Securities, whereby all holdings will be electronically held facilitating fast and efficient delivery, even when a client is out of contact. All dividends will be credited to the client’s account with us which can then be paid away to their bank account periodically or alternatively retained on account pending reinvestment.

Following the tax year end, all nominee clients will receive a Consolidated Tax Voucher (“CTV”) detailing all income received from dividends and interest in the year which can then be simply entered on their tax return.

Client Reporting

For each service clients will receive a contract note for each investment which we make on their behalf giving full details. In addition to the cash statements, we will provide periodic portfolio valuations which allows clients to see how their portfolio is performing and keep track of its overall value.

For clients who wish to reduce paperwork we can, upon written instruction, refrain from sending contract notes for each transaction, as well as quarterly statements. This information will then be reflected in the half yearly report.

For all clients who elect to use our nominee service a CTV will be issued annually detailing all income received in the period.

Capital Gains Tax

We appreciate that many clients use the services of accountants, but have historically found there is a requirement for investment managers to calculate a year end capital gains position on investments which we manage. Provided we are supplied with all the acquisition history, we can calculate all capital gains and losses within one report shortly after the tax year end to help investors complete their returns. For clients with more complex tax affairs we will be happy to supply a copy of this to their accountant if so required. This service forms part of the reporting package for all discretionary clients.