In this edition, we collated some useful articles about how we can help you to plan for the bad (and good!) things that come your way.

• Looking at why the mini-budget nearly bankrupt pension funds, an informative piece written by Phillip Kingscott, which details why pension funds struggled to meet their collateral requirements.
• Nick Rudd dives into 5 practical steps to make the most of your valuable allowances before the tax year-end, which includes how you can make the most of your ISA allowances.
• We also cover 3 practical tax benefits of a Venture Capital Trust.
• What sideways disinheritance is and how could it affect you going forward.
• Lastly, if you are in need of a post-Christmas pick-me-up trip for yourself or the whole family, we have included an insight on which luxurious winter destinations could offer you a great skiing trip next spring

Awards

For each of you as clients, your personal experience of working with our firm and our people is the only thing that really matters.

Nevertheless, there is perhaps some value in seeing how external parties view what we’re trying to do for you and so we thought telling you a bit about some recognition and awards we have received over the course of the year, could be of some interest to you.

• FTAdvisers have included us in their Top 100 Financial Advisors for the fourth year running. FTAdvisers take into consideration multiple factors such as the length of time a company has remained in business (36 years), whether it has achieved CII chartered or CISI accredited status, as well as financial data to indicate how successfully firms are doing the right thing by their clients, no matter what shocks might hit the UK. The Top 100 is compiled using Financial Clarity data from ISS Market Intelligence and those statistics continue to form the backbone of FTAdvisers’ rankings.
• Citywire New Model Adviser’s Top 100 Adviser again. The list celebrates the best of the professional financial planning community with its own set of criteria and represents the true spectrum of sizes when it comes to financial advice firms. They do not use for example, assets under advice to calculate the points they award but prefer other factors, such as investment in new advisers and qualifications.

SME News have awarded us Best High Net Worth Wealth Planners & Investment Management as part of the Southern Enterprise Awards 2022. SME base their outcome on a variety of specific criteria’s including, client dedication, innovation, business growth, longevity, online reputation, customer feedback and business performance. The Southern Enterprise Awards started in 2018 and since then it aims to recognise all individuals that show true excellence across the southern regions.

There are around 5,000 financial advisory firms in the UK.

Charity

HFMC Wealth as lead sponsor of the historic motor sport event, Veloce, and as a supporter of numerous staff-led charitable activities, has helped raise over £200,000 during this year for the following charities: Hope for Tomorrow, Halow project, Hope House and Tŷ Gobaith and Different Strokes.

Once again, we would like to wish you seasons greetings and hope that 2023 will bring you all good health and prosperity.

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In the Autumn Statement, Jeremy Hunt continued with this theme, see our recent summary here.

So, it’s more important than ever to make the most of these valuable tax breaks when you can.

With the 5 April not that far away, now’s the time to act.

Here are five practical things you might want to do to get the most from the available tax breaks before the tax year-end.

1. Make the most of your ISA allowances

When you save or invest in an ISA you benefit from paying no Income Tax or CGT on the proceeds. So, it’s worth maximising your family’s tax-free saving every year. If you don’t use the ISA allowance, you lose it – you can’t carry forward any unused allowance to a subsequent tax year.

Remember that, as well as being able to invest up to £20,000 for you and your spouse, you can invest up to £9,000 for each child under 18 in a Junior ISA.

And, if you have children in your family aged 16 or 17, you can also contribute to an adult ISA in their name. This means you can save/invest £29,000 tax-efficiently in the child’s name before the tax year-end.

If you’re aged between 18 and 39, a Lifetime ISA (LISA) is a useful choice if you’re saving to buy your first home, or for retirement. You can save up to £4,000 each year – either in one or more lump sums or as a regular monthly saving – and you’ll receive a government bonus of 25% on your savings.

Note that if you withdraw from a LISA before age 60 for anything other than buying your first home, you’ll pay a 25% penalty to recoup the government bonus.

2. Maximise your pension contributions

Make your own contributions

If you can, make use of your pension Annual Allowance. For most people this is £40,000 gross each year, unless you earn more than £240,000 or you have started flexibly withdrawing your pension, in which case a lower allowance will likely apply.

You can make personal contributions to 100% of your earned income and tax relief is available up to your highest marginal rate of Income Tax. That’s potentially up to 45% relief – remember that if you are a higher or additional-rate taxpayer you’ll normally need to claim this relief through self-assessment.

Non-taxpayers still receive tax relief so they can be a good choice for children or grandchildren.

Even if you have no earnings at all, you can contribute £3,600 and still benefit from tax relief on the contribution at the basic rate. So, as well as contributing for you and your spouse, you can invest the same amount for each child or grandchild to build up savings for them.

If your child or grandchild is under the age of 18, you can pay up to £2,880 into a pension for them this tax year. Even though a child won’t typically pay tax, you’ll still benefit from £720 in tax relief and the child’s pension fund will then benefit from a total contribution of £3,600.

Remember that an individual can’t normally access pension savings until age 55 (rising to age 57 in 2028). So, a child or grandchild won’t be able to use these funds to achieve other life goals, such as paying for university or buying their first home.

Help out adult children or grandchildren by boosting their pension.

If you have adult children or grandchildren, you can also make pension contributions on their behalf.

Any contribution you make to their pension is treated as if it was made by them. So, if they are a basic-rate taxpayer and you pay £800 into their pension, they will get tax relief taking the total contribution to £1,000.

If your child or grandchild is a higher or additional-rate taxpayer, they can claim the additional tax relief on the contribution you make through their annual tax return.

If your child or grandchild earns between £50,000 and £60,000 and is affected by the High Income Child Benefit Charge then your pension contributions will also help them in this regard. That’s because any money you contribute to their pension will be deducted from their income before the charge is calculated, thereby potentially reducing their tax charge.

Pensions can be a tax-efficient way for business owners to withdraw profits.

If you own a business, pension contributions can be a tax-efficient method of withdrawing profits from your business, especially with the rate of Corporation Tax going up from 6 April 2023.

Don’t forget to consider “carry forward” relief, where you can potentially mop up unused relief from the previous three tax years once you have maximised your contributions in the current tax year.

A pension contribution can help you if you earn between £100,000 and £125,000

Another point to consider is where your income is between £100,000 and £125,000. Here, a pension contribution could help you get some or all of your Personal Allowance back and is consequently even more tax-efficient.

3. Crystallise some capital gains

Crystallising gains up to the CGT annual exemption has been a regular staple of tax year-end planning for many years.

The annual exemption of £12,300 is worth up to £2,460 a year (2022/23) for a higher-rate taxpayer and you can’t carry this forward.

With the changes in the Autumn Statement setting out that the CGT allowance will drop to £6,000 in April 2023 and then to £3,000 in April 2024, this will be your last opportunity to benefit at this level.

You’ve previously read about why crystallising gains each year can help you to save tax. If you accept that CGT must be paid at some point in the future, it’s essentially an argument between emotions and maths.

• If you crystallise gains now, use your annual exemption, and pay CGT at 10% or 20% you have less in the account post-reinvestment
• Or, you could have a larger amount invested but you’ll be loaded with CGT.

The compound effect of using an annual CGT allowance is significant (albeit diluted to some extent by the changes from next year), and so the allowance should be utilised, where available and practical, each year.

Of course, everyone’s circumstances are different and so we recommend speaking to us before making any decisions in this regard.

4. Use your gifting allowances, and remember to gift from income

Gifting is a great way to reduce the value of your estate, and a potential future IHT liability. So, don’t forget to use your annual gifting exemption.

You and your spouse/partner can gift up to £3,000 each tax year and if you didn’t make gifts last year, you can carry forward one year only of an additional £3,000 each.

As well as helping the recipient, this helps reduce the IHT liability on your estate after death. There are other exemptions to consider too, such as:

• Small gifts exemption of up to £250
• Gifts for a wedding or civil partnership of up £5,000 for a child, £2,500 for a grandchild or great grandchild or £1,000 for anyone else
• Gifts to charity.

One of the most valuable IHT exemptions for high earners is the exemption for “gifts from normal income”.

• You must make your gift from income (not capital).
• The gift must be part of your normal expenditure.
• The gift should leave you with sufficient income to maintain your standard of living.

For example, you might pay pension contributions for a family member or pay school fees for a grandchild.

One of the key requirements of making gifts from income is that they are regular, both in terms of frequency and value. This means that you should ensure you make your gifts from income each tax year. If you don’t, HMRC may decide that your gifts do not satisfy the requirements of this exemption.

5. Make the most of other tax-efficient investments

If you’ve utilised your ISA and pension allowances, other forms of tax-efficient investment can then be attractive to certain types of individuals.

You can normally invest up to £1 million in the Enterprise Investment Scheme (EIS) and up to £200,000 in Venture Capital Trusts (VCTs). Both offer 30% tax relief on your investment, as long as you owe sufficient other tax to fully benefit from this. You must hold an EIS for at least three years and a VCT for five years to maintain all the tax advantages.

Such investments are high risk and so not suitable for everyone. However, one particular advantage for high earners who have used up their pension and ISA allowances (and perhaps where the pension Lifetime Allowance may be an issue) is that VCTs can be used to create a tax-free income stream from dividends, supplementing future retirement income.

Get in touch

If you’d like to make the most of your tax allowances and exemptions before the end of the tax year, please get in touch.

Send us a message via the HFMC Wealth website or call us on 020 7400 4700 to find out more today.

Please note

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future results.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

The Enterprise Initiative Scheme (EIS) and Venture Capital Trusts (VCTs) are higher-risk investments. They are typically suitable for UK-resident taxpayers who are able to tolerate increased levels of risk and are looking to invest for five years or more. Historical or current yields should not be considered a reliable indicator of future returns as they cannot be guaranteed.

Share values and income generated by the investments could go down as well as up, and you may get back less than you originally invested. These investments are highly illiquid, which means investors could find it difficult to, or be unable to, realise their shares at a value that’s close to the value of the underlying assets.

Tax levels and reliefs could change, and the availability of tax reliefs will depend on individual circumstances.

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Alongside reaching your personal goals, you may have also met your financial objectives – or even surpassed them, accumulating significant wealth and sharing it with those you love.

Now, as you get older, you might be thinking more and more about how you want to provide opportunities for the next generation.

Having a blended family can make the estate planning process a little more complex. FTAdviser reports that will disputes reached an all-time high in 2021, which could indicate the importance of paying close attention to your estate plans as early as possible.

One little-reported issue some blended families might face when passing on wealth is that of “sideways disinheritance”. This phenomenon can be both financially and emotionally harmful to blended families and can lead to disputes down the line.

Read on to learn what sideways disinheritance is, how it could affect your family, and ways to protect your wealth and loved ones from this eventuality.

Sideways disinheritance could mean your children lose out on some or all of their inheritance

Sideways disinheritance refers to when someone who has children from a previous relationship remarries after the death of their partner or spouse, inadvertently disinheriting their children and denying them of their inheritance.

If you are separated from your children’s other parent and have remarried, you now share your wealth with your new spouse. Normally, your estate will go straight to them when you pass away.

If your spouse then remarries, taking their inherited wealth into a new relationship, your children from your first marriage could be cut off from accessing your wealth when either your ex-spouse or their new partner dies. This can happen for a number of reasons, both accidental and on purpose.

Of course, this situation can be both financially and emotionally painful for your children. They may be anticipating an influx of family wealth later in life, and feel blindsided and hurt by this unexpected form of disinheritance.

What’s more, sideways disinheritance could lead to a lengthy, costly will dispute.

All in all, if you have a blended family similar to the example given, it is extremely important to protect your wealth and avoid sideways disinheritance as best you can.

Fortunately, by working with an expert to put certain appropriate measures in place, you can prepare your family for this eventuality and reduce the risk of sideways disinheritance taking place.

2 ways you can help avoid sideways disinheritance before it’s too late

Establish a trust that clearly designates funds for your children

Rather than leaving all your wealth to be inherited through your will, you could instead consider putting some funds in trusts for your children or chosen beneficiaries.

Not only can trusts help mitigate the amount of Inheritance Tax (IHT) your beneficiaries will pay, but they can also clearly set out your wishes when it comes to how you wish to pass your wealth on.

Indeed, trusts can help avoid sideways disinheritance. Putting wealth in trusts for your children means the funds are controlled by the trustee, who can ensure, even after you’re gone, that your beneficiaries receive the inheritance they deserve.

Some trusts that could help avoid sideways disinheritance are:

• A discretionary trust. This type of trust allows your trustee – a relative, friend, or professional close to you – to decide when and how the funds are distributed to its beneficiaries. If you elect a trustee outside of your immediate family, this person could ensure your beneficiaries receive their inheritance after you are gone.
• An interest in possession trust. These trusts allow you to allocate funds for your spouse to receive when you pass away. Crucially, you can also dictate that once your spouse dies, the income from the trust then passes directly to your nominated beneficiaries – in this case, your children.
• A bare trust. If you wish to keep things simple, you can place funds in a bare trust that is immediately passed to your beneficiaries when you die. So, no matter what your spouse does after you pass away, your children will receive income from the bare trust you have put in place.

I will use an example scenario to illustrate how a sideways disinheritance could happen and how a Life Interest Trust can help. Mr and Mrs Adams have made mirror wills, leaving everything to each other, which then passes onto their son on death of the second person.

After Mr Adams dies, Mrs Adams remarries and she and her new spouse live in the property that Mrs Adams owns outright. She is aware that remarrying revokes a will, so she makes a new mirror will with her new husband, in which they, again, leave everything to each other, and then evenly between her son and her new husband’s three children (from a previous relationship).

When Mrs Adams eventually dies, her entire estate passes to her current husband, in line with the terms of their will. He then makes a new will and disinherits Mrs Adams’ son, leaving everything instead to his three children. Mrs Adams’ son inherits nothing from his parents’ estate.

For a further conversation about using trusts to avoid sideways disinheritance, contact your financial planner today.

Review and update your will with the help of an expert

Of course, one of the simplest and most efficient ways to avoid sideways disinheritance is to regularly review and update your will with the help of an expert.

If you wish, you can designate wealth to be passed immediately to your children when you die, rather than giving your entire estate to your spouse. By giving everyone enough to pursue their own opportunities and live comfortably, you could avoid a difficult will dispute – not to mention familial rifts – in the future.

Your financial planner can help review the terms of your will and ensure everyone you love will receive the inheritance they deserve.

Get in touch

For guidance on estate planning, ensuring that your final wishes are carried out, avoiding sideways disinheritance, and providing the next generation with a wealth of opportunities, email or contact us on 020 7400 4700.

Please note

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.

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This may be particularly welcome news if you’re looking to reduce your tax liability, as VCTs offer a potentially attractive way to do so.

VCTs are investment vehicles containing smaller, fledgling companies looking for funding to develop and expand. Typically, between 20 and 70 of these companies are packaged together in a single fund by a VCT provider that investors can then invest in all at once.

Many of these businesses will go on to become household names – property search site Zoopla, burger chain Five Guys, and meal kit company Gousto are all alumni of the scheme.

However, others will also fail entirely within their first few years. This means that VCTs can present a risk to your money, as there’s a greater probability of this happening to companies within these investment packages than to larger, more-established firms.

Whilst VCTs are generally higher risk than other investment options, investors are generously compensated in the form of various tax benefits in return for the risk they take on.

These tax benefits can make VCTs a worthwhile choice for high earners looking to reduce their tax bill. For example, VCTs are often used in retirement planning when investors are seeking a regular tax-free yield.

Read on to discover three useful tax benefits that come with VCT investments.

1. Up to £60,000 in Income Tax relief

First and foremost, one of the most notable benefits of VCT shares is that you can receive Income Tax relief on your investment.

When investing in VCTs, you can claim up to 30% Income Tax relief on up to £200,000 of investment in a single tax year.

That means you could reduce your Income Tax bill by up to £60,000 in each year that you invest in the funds.

Bear in mind that you can only claim this tax relief in the tax year that you invest, and you must hold your investment for at least five years to qualify. Otherwise, you’ll have to repay any claimed relief.

The relief you claim must also not exceed the amount of Income Tax you are subject to in that tax year.

2. There’s no Capital Gains Tax to pay on increases in value

Beyond Income Tax relief, another advantage of VCT investments is that your shares won’t be subject to Capital Gains Tax (CGT).

CGT is charged when you “dispose of” or sell an asset for a gain. Each tax year, you do have a CGT exempt amount (£12,300 in 2022/23 reducing to £6,000 in 2023/24 and £3,000 in 2024/25) before tax is due, but gains above this amount will likely be subject to tax.

Your rate of tax depends on your Income Tax band so, as you’re most likely an additional-rate taxpayer, this will be 20%, or 28% on property that isn’t your main residence.

Meanwhile, VCT shares aren’t subject to CGT at all. So, when you come to sell your VCT shares, there’ll be no CGT to pay on any gains in the value of your investment.

Of course, you’ll only benefit from this if your shares rise in value, which is not guaranteed.

3. You may receive tax-free dividends on your investment

Many VCTs also pay dividends to investors, which are entirely tax-free.

Dividend Tax rates in the UK are notably high for additional-rate taxpayers, charged at 39.75% if you receive more than your Dividend Allowance in a single tax year (£2,000 in 2022/23 falling to £1,000 in 2023/24 and £500 in 2024/25). This can see a great deal of your dividend income eaten up in tax.

But, as VCT dividends are entirely tax-free, any dividend income derived from your VCT investment in the form of dividends can go straight into your pocket. In fact, you won’t even need to declare these on your tax return.

In an environment where more and more people are finding access to pensions restricted by both the Lifetime and Tapered Annual Allowances, VCTs offer one of the few remaining non contentious tax allowances available to investors.

Not all VCTs pay dividends, so check with your adviser before you invest if you’re targeting tax-free income in the form of dividends.

There are key considerations to note when investing in VCTs

These tax benefits are no doubt highly attractive, and may have you considering purchasing VCT shares as soon as possible.

However, before you consider these investment vehicles, there are a few things to bear in mind first.

VCTs are higher risk investments

As mentioned earlier, VCTs are made up of smaller, developing businesses and, while many go on to be successful, others fail early on. As a result, there’s always a chance that you’ll lose value on your investment, negating the tax benefits of having invested in the first place.

You’ll need to be comfortable seeing your investment fluctuate more in value, and potentially even getting back less than you invested.

You can only invest during set windows

VCT providers only offer access to these investments during set windows when they are raising capital. As a result, you won’t have access to them at all times, and you’ll need to be prompt in making your investment during the periods when you are able to do so.

We can help you with this, finding the most appropriate VCTs for you and ensuring that your money is invested in them when they become available.

You must hold your investment for at least five years

There are strict rules governing the tax benefits that VCTs come with, most notably that you must hold your investment for at least five years to be eligible for tax relief. Additionally, the investments themselves must also retain VCT-qualifying status during this period.

While tax relief is paid upfront, you’ll need to repay any you’ve claimed if you sell your shares before the end of the five-year period.

So, you’ll need to be confident that you won’t need access to your money throughout these five years before you invest.

While VCTs are listed on the stock exchange, they are thinly traded as there is no initial income tax relief available on second hand shares. As such, in order to sell your shares you usually need to rely on the VCT board to buy those shares back from you when you wish to exit, which will typically be at a discount to the Net Asset Value (NAV).

Work with us

If you’d like to find out whether a VCT investment is appropriate for you, please get in touch with your financial adviser

Please note

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Venture Capital Trusts (VCT) are higher-risk investments. They are typically suitable for UK-resident taxpayers who are able to tolerate increased levels of risk and are looking to invest for five years or more. Historical or current yields should not be considered a reliable indicator of future returns as they cannot be guaranteed.

Share values and income generated by the investments could go down as well as up, and you may get back less than you originally invested. These investments are highly illiquid, which means investors could find it difficult to, or be unable to, realise their shares at a value that’s close to the value of the underlying assets.

Tax levels and reliefs could change and the availability of tax reliefs will depend on individual circumstances.

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The immediate market reaction to the statement – and former chancellor Kwasi Kwarteng’s subsequent comments about further tax cuts – sent markets into meltdown. The pound fell to an all-time low against the US dollar, while the cost of government borrowing immediately spiked.

Of course, the Growth Plan led to the premature demise of both the chancellor and prime minister, with new chancellor Jeremy Hunt having already reversed most of the measures announced in the September statement.

You may have seen the headlines immediately after the mini-Budget claiming that many pension funds were at risk of collapse. Read on to find out why pensions were affected, and whether it is true that pension funds nearly did go bankrupt.

Pension funds struggled to meet their collateral requirements

In the aftermath of the mini-Budget, there was a huge sell-off of British government bonds (“gilts”) as investors began to lose faith in the credibility of the Truss administration to run a sustainable tax and spending policy. This caused the rate of return the bonds generate (the “yield”) to dramatically increase.

This affected defined benefit (DB) or “final salary” pension funds because the pension schemes typically invest more than half of their assets in bonds, in order to pay pension liabilities decades into the future.

To avoid exposure to market volatility, these pension schemes typically hedge their positions through gilt derivatives managed by so-called “liability-driven investment” (LDI) funds overseen by major fund managers such as BlackRock, Legal & General, and Schroders.

These are largely leveraged funds. So, when they buy gilts, they frequently use them as collateral to raise cash and then use this cash to buy more gilts, then pledge the gilts again and buy more gilts, and so on.

If yields rise too far and too fast – as they did after the mini-Budget – these pension schemes need to provide more cash to the LDI funds because they end up paying out more money in the transaction than they are receiving.

The funds invested in LDI schemes faced rolling “margin calls” as the value of the bonds they had pledged as collateral collapsed.

When the value of gilts fell after the mini-Budget, pension funds had to sell more to raise the same amount of money to repay their loans. As more gilts were sold, their value fell further, and this risked creating a “doom loop” that could have left some pension funds unable to pay their debts.

These margin calls required the pension funds to provide collateral immediately, and the schemes may only have had a day or two to find this cash.

Cardano UK CEO Kerrin Rosenberg told Investment Week: “When you get these cash calls from your managers, you normally you have three or four days to respond.

“But we saw a 200-basis point rise in three days, and when managers asked for cash, instead of giving you four days, they gave you just one day to provide the cash”.

The Bank of England stepped in to calm the market

The Bank of England (BoE)’s intervention – they stepped in to buy billions of pounds of British government bonds – calmed the market, as it gave pension schemes time to process transactions in an orderly manner to secure their positions.

Essentially, the BoE intervened on 28 September and promised to buy gilts to stop their price dropping any further. This effectively acted as a backstop and put a floor on the price of a gilt and a ceiling on the yield.

This gave schemes time to sell assets in a more orderly way, such that the repricing of the gilts didn’t lead to a market bloodbath.

Did pension funds nearly go bust?

According to the BoE, many pension funds did come close to collapse.

The Guardian reports that the central bank said pension funds with more than £1 trillion invested in them came under severe strain with a “large number” in danger of going bust.

Had the BoE not intervened with a promise to buy up to £65 billion of government debt, these funds “would have been left with negative net asset value” and cash demands they could not have met.

“As a result, it was likely that these funds would have to begin the process of winding up the following morning,” the Bank said.

What this means for your pension

It’s important to note that these issues apply only to DB (or “final salary”) pensions. It doesn’t affect the State Pension or “defined contribution” (DC) – or money purchase – pension schemes. Most workplace pension schemes, and all personal pension plans are DC schemes.

As long as the employer sponsoring your pension scheme remains solvent, there is little risk of your pension not being paid in full.

One of the reasons is that that the pension regulator calculates the value of a pension scheme’s liabilities by using a discount rate on the future cash value of pensioner payments that is linked to the gilt yield. When that yield rises, the present value of those liabilities actually falls.

So, paradoxically, even though pension funds could have collapsed without BoE intervention, pension funds should emerge stronger from recent events.

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No matter where you choose to go, my experience is that a winter holiday, or some winter long weekends, bring a brilliant contrast to the dark evenings and wet weather the UK experiences at this time of year.

For many, the ideal winter getaway is not a hot, sunny location, but rather an adventure to the mountains for skiing, snowboarding, climbing or trekking. Whether you take a winter holiday every year, or are looking to start this winter, there are many stunning locations you could visit.

So, if you are looking for a new locale to hit the slopes, try a new winter sport or simply shop, eat and relax, here are my thoughts on three alternative personal winter favourites.

1. Chamonix, France

Chamonix Mont-Blanc, Haute-Savoie, Frankreich

One of France’s oldest and most established year-round resorts, Chamonix’s attractions speak for themselves. After hosting the Winter Olympics in 1924, Chamonix became a popular destination for the European elite to enjoy during the cold winter months and for summer mountain adventures.

Located below the magnificent Mont Blanc massif, close to the Swiss border, the beautiful town of Chamonix could be exactly the place you need for a winter break. A proper year-round town, whether you are a fair-weather skier or a hardcore enthusiast; or if fancy your first try at ice climbing or a beginner’s alpine ascent such as the Arrete Cosmique or the Petit Verte, Chamonix has it all. Chamonix is one of my favourite places in the world. Comprising picture-perfect views of France’s largest glacier, Mer de Glace, the daunting needle-sharp peaks of the Aiguilles du Chamonix, the sheer mass of Mont Blanc looking up nearly 4,000 metres from the valley floor, the views are spectacular.

One of the resort’s most famous runs is the Vallée Blanche, a 20km off-piste run (guide essential) snaking down the epic mountainside. If you’re a beginner, there are starter-friendly runs but really Chamonix is ideal for intermediate to advanced skiers.

When it comes to accommodation, you can choose to stay in either a town-based or mountainside chalet that provides amazing views, total luxury inside, and can be booked with a full staff of professionals to ensure a relaxing stay. There are a handful of lovely hotels too including the 5-star Premier Albert.

If you are planning a child-free getaway, there is plenty of nightlife in Chamonix, with an array of chic (and edgy!) bars, restaurants, and clubs to help you unwind after a day on the mountain. During the day you’ll find stores ranging from luxury designer to hardcore mountain equipment to browse at your leisure.

What’s more, Chamonix is only 90 minutes away from Geneva airport by car, great for a long weekend – so your travels should be conveniently quick, too.

2. Aspen, Colorado

Looking at Aspen Colorado during the winter season

If you wish to venture further afield for your ski adventure this winter, Aspen could be the ideal location for your mountain retreat.

Known as a magnet for skiers all around the US, the mountain town of Aspen, Colorado is home to a number of adjoining resorts, all with plenty to offer any group of holidaymakers looking for great skiing, luxurious accommodation, and amazing food.

Depending on your ability, and the amount you wish to ski or snowboard, any one of the Aspen ski resorts can meet your needs.

More advanced skiers tend to flock to Aspen Highlands; Snowmass is great for intermediates; whereas beginner skiers can find what they need at Buttermilk or Aspen Mountain. However, there are opportunities for everyone at each resort – and if you need them, private lessons from expert skiers are available.

Of course, when the day on the slopes is done, Aspen has a huge amount to offer off the mountain, too. Shopping opportunities are bountiful in this coveted travel spot, including stockists of world-renowned luxury jewellers, Brent Neale and Jessica McCormack. Night life abounds as do some wonderful art galleries; frankly non-skiers would find plenty to keep them occupied for a few days.

Whilst it’s a long way away we absolutely loved our week in Aspen including a bit of unexpected excitement on New Year’s Eve when the town was closed because of a bomber; the only restaurant open was an out of town take away rib shack with a 2-hour queue. When we finally got to eat our smoke baby back ribs it was one of the best meals we had ever had…!

3. Megève, France

Winter wonderland in Megève. Walk to the Nordic ski resort La Livraz and around.

Located just across the Swiss border in France, Megève attracts loyal visitors every winter and spring. Combining French mountain charm with luxurious modern amenities and unbeatable intermediate skiing, Megève has all you need for an unforgettably relaxing winter break.

Of course, the Alps are well-known for their diverse skiing and snowboarding opportunities – and nestled snugly within the Alpine range, Megève does not disappoint and is ideal for the fair-weather skier looking to mix their sport with a lengthy, elegant lunch. A change from the more adventurous culture you feel in Chamonix.

When it comes to après-ski, Megève boasts an elegant scene. Enviable restaurants, luxury designer boutiques, and gorgeous spas are abundant in this resort, attracting an international set from Paris, London, Rome, and around the world each winter.

Plus, being just an hour’s drive from Geneva airport, Megève is ideal for a mini-break, as well as a longer, more relaxing holiday. If you’re searching for a place to whisk your significant other away for a few short days for a relaxing winter holiday you can find beautiful accommodation and easy-to-access travel arrangements in and around Megève.

For me Chamonix is the tops but all three offer their own very varied attractions.

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