Wednesday, 17 February 2010
Wealthy Tax avoiders get hit for �373 million
(My Original Blog Post: http://www.consilium-ifa.co.uk/blog/financial-news/wealthy-tax-avoiders-get-hit-for-373-million.php)
HMRC started to tighten their grip on tax avoidance last year. It has been reported that £373 million in revenue was received as a result of targeting tax avoidance schemes. This represents a 21% increase on the previous year.
Figures obtained under the Freedom of Information Act show the result of action taken by special HM Revenue & Customs' teams set up to tackle tax avoidance.
The haul was revealed by law firm McGrigors, under the freedom of information act. The increase in revenue is 360% higher than five years ago.
The campaign has been used to help plug the hole in the public finances.
It is believed that many old schemes are still being used and it is only a matter of time before HMRC catches up with them.
Investment bankers and hedge fund managers were among HMRC’s main targets, as were foreign nationals.
Tax avoidance that are designed for inheritance tax planning, capital gains tax and stamp duty have been closed down. The rules on trusts have also been given an overhaul, making it much harder to use them to reduce tax.
HMRC started to tighten their grip on tax avoidance last year. It has been reported that £373 million in revenue was received as a result of targeting tax avoidance schemes. This represents a 21% increase on the previous year.Figures obtained under the Freedom of Information Act show the result of action taken by special HM Revenue & Customs' teams set up to tackle tax avoidance.
The haul was revealed by law firm McGrigors, under the freedom of information act. The increase in revenue is 360% higher than five years ago.
The campaign has been used to help plug the hole in the public finances.
It is believed that many old schemes are still being used and it is only a matter of time before HMRC catches up with them.
Investment bankers and hedge fund managers were among HMRC’s main targets, as were foreign nationals.
Tax avoidance that are designed for inheritance tax planning, capital gains tax and stamp duty have been closed down. The rules on trusts have also been given an overhaul, making it much harder to use them to reduce tax.
Tuesday, 16 February 2010
Inflation exceeds targets
(My Original Blog Post: http://www.consilium-ifa.co.uk/blog/general-info/inflation-exceeds-targets.php)
In the twelve months to January, the consumer prices index (CPI) rose by 3.5% in the year. This was up from the 2.9% rise recorded in
December 2009.
The Bank of England has been under pressure over most of 2009. Higher than expected inflation has meant that the BOE governor – Mervyn King has had to write to the Chancellor of the Exchequer to explain why inflation has been above the Governments target of 2%.
The Bank anticipates that inflation will fall later this year. If they are proved correct it may even stay below the target for the next two years
The Governor has indicated that the recent high level of inflation have been down to the VAT change in December and increases in oil prices.
In the year to January, the all items retail prices index (RPI) which is used to negotiate salary increases rose by 3.7%, up from 2.4% in the twelve months to December as last year's interest rate cuts dropped out of the annual calculations.
Over the same period, the all items RPI excluding mortgage interest payments index (RPIX) rose by 4.6%, up from 3.8% in December.
For the latest market information go to our Market Info page
In the twelve months to January, the consumer prices index (CPI) rose by 3.5% in the year. This was up from the 2.9% rise recorded in
The Bank of England has been under pressure over most of 2009. Higher than expected inflation has meant that the BOE governor – Mervyn King has had to write to the Chancellor of the Exchequer to explain why inflation has been above the Governments target of 2%.
The Bank anticipates that inflation will fall later this year. If they are proved correct it may even stay below the target for the next two years
The Governor has indicated that the recent high level of inflation have been down to the VAT change in December and increases in oil prices.
In the year to January, the all items retail prices index (RPI) which is used to negotiate salary increases rose by 3.7%, up from 2.4% in the twelve months to December as last year's interest rate cuts dropped out of the annual calculations.
Over the same period, the all items RPI excluding mortgage interest payments index (RPIX) rose by 4.6%, up from 3.8% in December.
For the latest market information go to our Market Info page
Monday, 15 February 2010
Making a Will
(My Original Blog Post: http://ping.fm/v388E)
Don t leave your beneficiaries with extra expenses and complications.
Individuals who pass away without a valid will, or intestate, result in complications ,costs to their beneficiaries and often gift thousands of pounds to the Treasury in what may be avoidable Inheritance Tax (IHT).
The Law Society says that anyone with possessions and family or friends should make a will, regardless of their age. It is especially important if you are not married to your partner, because the law does not accord partners the same rights automatically of inheritance as spouses.
Property that is owned jointly by unmarried partners on a joint tenancy basis would still pass automatically to the surviving partner under the rules of survivorship. Under the current intestacy rules, an unmarried partner has no rights to any assets that were not jointly held (although the Law Commission has of late suggested to change this).
Affecting a will is also essential if you have children, as you can appoint guardians to look after them.
It is essential to make a list of investments, propert and debts and their approximate values. Include your properties, investments, nest egg, insurance policies and pensions.
In addition, consider details of specific bequests. Merely informing a relative that an item will be his or hers one day could cause trouble later.
You should receive professional advice on inheritance tax planning as part of writing your will. Simple measures could save the beneficiaries of wealthier householders thousands of £'s in taxation.
A vital factor of making a will is the naming of executors to ensure that your wishes are executed.
You should also review your will every five years or so and whenever your circumstances are altered by a substantial life event, such as wedding, split up or a birth or death in the immediate family. Another example would be after a house purchase or move.
Whoever makes up your will, make sure acopy is kept secure or deposit it with a probate registry
Don t leave your beneficiaries with extra expenses and complications.
Individuals who pass away without a valid will, or intestate, result in complications ,costs to their beneficiaries and often gift thousands of pounds to the Treasury in what may be avoidable Inheritance Tax (IHT).
The Law Society says that anyone with possessions and family or friends should make a will, regardless of their age. It is especially important if you are not married to your partner, because the law does not accord partners the same rights automatically of inheritance as spouses.
Property that is owned jointly by unmarried partners on a joint tenancy basis would still pass automatically to the surviving partner under the rules of survivorship. Under the current intestacy rules, an unmarried partner has no rights to any assets that were not jointly held (although the Law Commission has of late suggested to change this).
Affecting a will is also essential if you have children, as you can appoint guardians to look after them.
It is essential to make a list of investments, propert and debts and their approximate values. Include your properties, investments, nest egg, insurance policies and pensions.
In addition, consider details of specific bequests. Merely informing a relative that an item will be his or hers one day could cause trouble later.
You should receive professional advice on inheritance tax planning as part of writing your will. Simple measures could save the beneficiaries of wealthier householders thousands of £'s in taxation.
A vital factor of making a will is the naming of executors to ensure that your wishes are executed.
You should also review your will every five years or so and whenever your circumstances are altered by a substantial life event, such as wedding, split up or a birth or death in the immediate family. Another example would be after a house purchase or move.
Whoever makes up your will, make sure acopy is kept secure or deposit it with a probate registry
[Blog] Making a Will: Don t leave your beneficiaries with extra expenses and complications.
Individuals who pass away without a v... http://ping.fm/MWwMq
Individuals who pass away without a v... http://ping.fm/MWwMq
Friday, 12 February 2010
Watch out the FSA!
(My Original Blog Post: http://ping.fm/ekhWg)
It could be “all change” at the financial services authority if a conservative government gets into power later this year.
Senior conservative MP’s have confirmed that the role of the city watchdog would dramatically change if they came into power.
If elected banking supervision would be transferred from the FSA to the bank of England. The FSA have come under severe scrutiny over the last few years, especially due to the UK banking crisis.
The FSA have had a difficult week with its head (Hector Sants) resigning along with accusations of poor controls and issues regarding the proposed retail distribution review.
Mr Hoban a conservative shadow treasury spokesman said “We want the Bank to take responsibility for macro and micro prudential supervision in the first year,” Mr Hoban said in an interview with the Financial Times. Mr Hoban acknowledged that the plan had encountered significant resistance in the City in the seven months since it was proposed by George Osborne, the shadow chancellor.
There are concerns in the city that a large scale restructuring of financial regulation could cause problems.
Mr Hoban said the Tories had no intention of waiting several years before enacting the reforms. He admitted that the proposed Consumer Protection Agency to take on the FSA’s customer-related work might add to the cost of regulation. “We want to move away from a situation where the FSA is cleaning up the mess after it happens.”
Consilium Asset Management
It could be “all change” at the financial services authority if a conservative government gets into power later this year.
Senior conservative MP’s have confirmed that the role of the city watchdog would dramatically change if they came into power.
If elected banking supervision would be transferred from the FSA to the bank of England. The FSA have come under severe scrutiny over the last few years, especially due to the UK banking crisis.
The FSA have had a difficult week with its head (Hector Sants) resigning along with accusations of poor controls and issues regarding the proposed retail distribution review.
Mr Hoban a conservative shadow treasury spokesman said “We want the Bank to take responsibility for macro and micro prudential supervision in the first year,” Mr Hoban said in an interview with the Financial Times. Mr Hoban acknowledged that the plan had encountered significant resistance in the City in the seven months since it was proposed by George Osborne, the shadow chancellor.
There are concerns in the city that a large scale restructuring of financial regulation could cause problems.
Mr Hoban said the Tories had no intention of waiting several years before enacting the reforms. He admitted that the proposed Consumer Protection Agency to take on the FSA’s customer-related work might add to the cost of regulation. “We want to move away from a situation where the FSA is cleaning up the mess after it happens.”
Consilium Asset Management
[Blog] Watch out the FSA!: It could be “all change” at the financial services authority if a conservative government gets ... http://ping.fm/2Fe5T
Local MP meets Sodbury and Yate Business Association
Local MP Steve Webb met with the local business people of Chipping sodbury and Yate. Sodbury and Yate is the local chamber of commerce
Thursday, 11 February 2010
BT and BA disagree with the pensions regulator
(My Original Blog Post: http://ping.fm/hkN7L)
The Pensions regulator seems to be at loggerheads with the Trustees of one of the UK’s largest pension schemes.
It has been revealed that the BT Pension scheme has a deficit of over £9billion as at December 2008. The regulator has raised concerns about certain aspects of the plan to reduce the deficit.
The trustees of the scheme have agreed a 17 year plan to improve the current underfunding of the scheme. They have also agreed to pay an additional £500 million a year into the pension arrangement
The scheme is the largest final salary pension scheme in the UK.
BT joins British Airways in a disagreement with the Pensions Regulator over the cost of its pension obligations. BT’s pension liabilities dwarf the company’s £10.1bn market capitalisation.
For pensions and retirement advice why not contact us
The Pensions regulator seems to be at loggerheads with the Trustees of one of the UK’s largest pension schemes.
It has been revealed that the BT Pension scheme has a deficit of over £9billion as at December 2008. The regulator has raised concerns about certain aspects of the plan to reduce the deficit.
The trustees of the scheme have agreed a 17 year plan to improve the current underfunding of the scheme. They have also agreed to pay an additional £500 million a year into the pension arrangement
The scheme is the largest final salary pension scheme in the UK.
BT joins British Airways in a disagreement with the Pensions Regulator over the cost of its pension obligations. BT’s pension liabilities dwarf the company’s £10.1bn market capitalisation.
For pensions and retirement advice why not contact us
[Blog] BT and BA disagree with the pensions regulator: The Pensions regulator seems to be at l... http://ping.fm/haCcc
Can the government deliver on home care
(My Original Blog Post: http://ping.fm/GPf5g)
Every four years or so an election tends to make politicians focus on issues that are vote winners. One such issue is the current lack of care for the elderly. Long Term care is a key battleground for all the parties.
The number of people in the UK requiring long term care has been increasing over the last decade and it will continue to increase.
Whether the Government and the UK are able and willing to provide the level of care that the general public expect is another matter.
Gordon Brown was treated to a public dressing down by David Cameron this week at Prime Ministers Question Time. His announcement to improve home care was met with scepticism. The PM also avoided the question posed about how care was to be paid for. The indication it that a tax after death might be levied ranging between £17,000 and £20,000.
The plan is intended to start in October with central government picking up most of the £670 million cost, while councils will provide the remaining £250 million.
Local councils are worried that the cost of care will be too much for local authorities to pay for. A large number of councillors have written to the Times to raise their concerns.
There is no easy answer to how we should care for the elderly in our communities, but we should at least provide a better level of support and ability to finance care when compared to the current situation.
Whether any party has the gumption to tackle such an important issue we will have to wait and see.
Financial Advisers are ideally placed to help provide support and guidance in addition to charities such as help the aged and local authorities.
Every four years or so an election tends to make politicians focus on issues that are vote winners. One such issue is the current lack of care for the elderly. Long Term care is a key battleground for all the parties.
The number of people in the UK requiring long term care has been increasing over the last decade and it will continue to increase.
Whether the Government and the UK are able and willing to provide the level of care that the general public expect is another matter.
Gordon Brown was treated to a public dressing down by David Cameron this week at Prime Ministers Question Time. His announcement to improve home care was met with scepticism. The PM also avoided the question posed about how care was to be paid for. The indication it that a tax after death might be levied ranging between £17,000 and £20,000.
The plan is intended to start in October with central government picking up most of the £670 million cost, while councils will provide the remaining £250 million.
Local councils are worried that the cost of care will be too much for local authorities to pay for. A large number of councillors have written to the Times to raise their concerns.
There is no easy answer to how we should care for the elderly in our communities, but we should at least provide a better level of support and ability to finance care when compared to the current situation.
Whether any party has the gumption to tackle such an important issue we will have to wait and see.
Financial Advisers are ideally placed to help provide support and guidance in addition to charities such as help the aged and local authorities.
[Blog] Can the government deliver on home care: Every four years or so an election tends to make polit... http://ping.fm/WP6uI
[Blog] End of the Tax Year Looms: It's not very long before the ending of the tax year. It is so essential to make the... http://ping.fm/BPxgC
End of the Tax Year Looms
(My Original Blog Post: http://www.consilium-ifa.co.uk/blog/general-info/end-of-the-tax-year-looms.php)
It's not very long before the ending of the tax year. It is so essential to make the most of any allowances and tax breaks that are useable.
By using the allowances and annual exemptions you might be able to reduce your tax bill substantially. This can ordinarily be done quick and easily with the advice of a financial advisor.
Individual Savings Accounts (ISAs). If you are aged over 50 your Isa allowance for the present tax year is now £10,200. ISA's are free from capital gains tax, can be used to provide an income and are one of the most tax efficient investment products obtainable
Pensions are also a tax efficient way of saving for retirement. Most individuals can pay in up to three thousand six hundred pounds gross each yr and obtain basic rate tax relief on the payment made. Forty percent taxpayers can claim the residue on their self assessment.
If you have made profits on certain types of investments you may be able to use your yearly capital gains tax allowance. This will enable you to make gains up to this level without acquiring a liability to pay tax. In some examples it is also viable to carry forward previous year's losses.
Each individual can receive a personal allowance of £6475.00 without incurring any income tax. For married couples or civil partnerships, where one is a 40% taxpayer it is worthwhile looking to see who owns the investments and possibly look to transfer assets into the
20% twenty percent taxpayers name.Making annual gifts is also a means of cutting your liability to income tax.
Each individual can make an IHT exempt gift each year of up to Three thousand pounds in a tax year. Any unused exemption can be carried forward for 1 year only. If you are capable to make gifts out of income without it changing your standard of living you might be allowed to make gifts above the yearly exemption limit.
If you think your estate could be above the Inheritance Tax nil rate band then efficient tax planning can be used to cut back your estates likely IHT liability. This could be a suitably drafted will or instead trust planning.
Consilium Asset Management are independent financial advisers based in Bristol, South Gloucestershire.
It's not very long before the ending of the tax year. It is so essential to make the most of any allowances and tax breaks that are useable.
By using the allowances and annual exemptions you might be able to reduce your tax bill substantially. This can ordinarily be done quick and easily with the advice of a financial advisor.
Tax effective investing
Individual savings accounts
Individual Savings Accounts (ISAs). If you are aged over 50 your Isa allowance for the present tax year is now £10,200. ISA's are free from capital gains tax, can be used to provide an income and are one of the most tax efficient investment products obtainable
Pensions
Pensions are also a tax efficient way of saving for retirement. Most individuals can pay in up to three thousand six hundred pounds gross each yr and obtain basic rate tax relief on the payment made. Forty percent taxpayers can claim the residue on their self assessment.
Capital Gains Tax Planning
If you have made profits on certain types of investments you may be able to use your yearly capital gains tax allowance. This will enable you to make gains up to this level without acquiring a liability to pay tax. In some examples it is also viable to carry forward previous year's losses.
Income Tax Planning
Each individual can receive a personal allowance of £6475.00 without incurring any income tax. For married couples or civil partnerships, where one is a 40% taxpayer it is worthwhile looking to see who owns the investments and possibly look to transfer assets into the
20% twenty percent taxpayers name.Making annual gifts is also a means of cutting your liability to income tax.
IHT planning
Each individual can make an IHT exempt gift each year of up to Three thousand pounds in a tax year. Any unused exemption can be carried forward for 1 year only. If you are capable to make gifts out of income without it changing your standard of living you might be allowed to make gifts above the yearly exemption limit.
If you think your estate could be above the Inheritance Tax nil rate band then efficient tax planning can be used to cut back your estates likely IHT liability. This could be a suitably drafted will or instead trust planning.
Consilium Asset Management are independent financial advisers based in Bristol, South Gloucestershire.
Thursday, 4 February 2010
Self Invested Personal Pensions
(My Original Blog Post: http://ping.fm/hr6ll)
Ever wondered what a sipp is? We've put some information on our website to help. Clickhere for more information on Self invested personal pensions/sipps.
Ever wondered what a sipp is? We've put some information on our website to help. Clickhere for more information on Self invested personal pensions/sipps.
[Blog] Self Invested Personal Pensions: Ever wondered what a sipp is? We've put some information on our web... http://ping.fm/OXWDJ
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