Friday, 15 October 2010
Tuesday, 12 October 2010
Thursday, 7 October 2010
Tuesday, 5 October 2010
Friday, 1 October 2010
Monday, 27 September 2010
Sunday, 26 September 2010
Wednesday, 22 September 2010
Tuesday, 21 September 2010
Monday, 20 September 2010
Tuesday, 14 September 2010
Friday, 10 September 2010
Thursday, 9 September 2010
Monday, 6 September 2010
Friday, 3 September 2010
Thursday, 2 September 2010
Tax changes for Discretionary Trusts
Before the recent change of government, the previous Chancellor Alistair Darling increased the highest rate of income tax to 50%.
As a consequence the tax rate applicable to discretionary trust increased, however without the benefit of the £150,000 tax band. Any income over and above the £1000 basic rate will be taxed at the 50% level.
On top of the increase in Income tax the recent emergency budget increased capital gains tax on certain types of trustee investment from 18% to 28%.
Trusts are also disadvantaged as the CGT free threshold is only £5050.
Taking into account all of the tax changes trustees have a responsibility to review existing trust arrangements. There are a number of ways to reduce the tax paid by trusts.
Trustees should carefully consider any proposed changes. We would recommend that trustees seek independent financial advice from a specialist that deals with trustee based investments.
Before the recent change of government, the previous Chancellor Alistair Darling increased the highest rate of income tax to 50%.
As a consequence the tax rate applicable to discretionary trust increased, however without the benefit of the £150,000 tax band. Any income over and above the £1000 basic rate will be taxed at the 50% level.
On top of the increase in Income tax the recent emergency budget increased capital gains tax on certain types of trustee investment from 18% to 28%.
Trusts are also disadvantaged as the CGT free threshold is only £5050.
Taking into account all of the tax changes trustees have a responsibility to review existing trust arrangements. There are a number of ways to reduce the tax paid by trusts.
Trustees should carefully consider any proposed changes. We would recommend that trustees seek independent financial advice from a specialist that deals with trustee based investments.
Wednesday, 18 August 2010
Thursday, 12 August 2010
Monday, 24 May 2010
The Chancellor ? George Osborne news conference
(My Original Blog Post: http://ping.fm/cgHNw)
The chancellor news conference has announced a wide range of spending cuts .Mr Osborne confirmed the government’s objective of cutting wasteful spending. He went on to cover 3 principles to help reduce the current budget deficit. The principles were:
- Urgent Action is needed now- UK taking a lead in Europe to reduce debt.
- All in this together- “looking after the most vulnerable”
- Control future spending
Budget for Health, Defence, International Development have been ring fenced in addition to Schools, Sure-start and Support for 16-19 year olds.
Treasury has identified over £6.25 billion of savings.
David Laws confirmed that there were “No easy Choices”.
The Vince Cables, business dept has been asked to reduce spending in 2010/11 by £836 million
Over £1 billion will be saved by cutting outsourced consultancy work.
[Blog] The Chancellor – George Osborne news conference: The chancellor news conference has announced a wide ran... http://ping.fm/3ibiG
[Blog] The Chancellor – George Osborne news conference: The chancellor news conference has announced a wide range of spending cuts .Mr Osborne confirmed the government’s... http://ping.fm/lZR89
Friday, 7 May 2010
Taking control of your existing pensions
(My Original Blog Post: http://ping.fm/yGsMD)
Transferring your pensions to a SIPP
If you would like to have more control over your own pension fund and be able to make investment decisions yourself with the option of our professional help, a Self-Invested Personal Pension (SIPP) could be the retirement planning solution to discuss with us.
Many SIPP providers will now permit you to set up a lump sum transfer contribution from another pension with as little as £5,000, and while most traditional pensions limit investment choice to a short list of funds, normally run by the pension company’s own fund managers, a SIPP enables you to follow a more diverse investment approach.
A SIPP will typically accept most types of pension, including:
- Stakeholder Pension Plans
- Personal Pensions Plans
- Retirement Annuity Contracts
- Other SIPPs
- Executive Pension Plans (EPPs)
- Free Standing Additional Voluntary Contribution Plans (FSAVCs)
- Most Paid Up Occupational Money Purchase Plans
You can typically choose from thousands of funds run by top managers as well as pick individual shares, bonds, gilts, unit trusts, investment trusts, exchange traded funds, cash and commercial property (but not private property). Also, you have more control over moving your money to another investment institution, rather than being tied if a fund under-performs.
Investing in commercial property could be a particularly useful facility for owners of small businesses, who can buy premises through their pension funds. There are tax advantages, including no capital gains tax to pay, in using the fund to buy commercial property. The rental income is received tax-free by the fund and when the property is sold, which must be before the pension is drawn.
If you own a business and decide to use the property assets as part of your retirement planning, you would pay rent directly into your own pension fund rather than to a third party, usually an insurance company.
Ordinarily, a business property will, assuming that its value increases, generate a tax liability for the shareholders or partners. Unless, that is, you sell the property to your SIPP.
Before transferring to a SIPP it is important to check whether the benefits, such as your tax-free cash entitlement, are comparable with those offered by your existing pension. Make sure, too, that you are aware of any penalties you could be charged or any bonuses or guarantees you may lose.
If you have had an annual income of £130,000 or more since April 2007 and make regular contributions to a pension, changes announced in the 2009 Budget could affect you. Switching regular contributions to a new pension may mean future regular contributions are subject to a £20,000 limit.
You cannot draw on a SIPP pension before age 55 and you’ll need to be mindful of the fact that you’ll need to spend time managing your investments. Where investment is made in commercial property, you may also have periods without rental income, and in some cases, the pension fund may need to sell on the property when the market is not at its strongest. Because there may be many transactions moving investments around, the administrative costs are higher than those of a normal pension fund.
The value of your SIPP when you draw benefits cannot be guaranteed as it will depend on investment performance. The value of fund units can go down as well as up and investment growth is not guaranteed. The tax benefits and governing rules of SIPPs may change in the future. The level of pension benefits payable cannot be guaranteed as they will depend on interest rates when you start taking your benefits. The value of your SIPP may be less than you expected if you stop or reduce contributions, or if you take your pension earlier than you had planned.
Transferring your pensions to a SIPP
If you would like to have more control over your own pension fund and be able to make investment decisions yourself with the option of our professional help, a Self-Invested Personal Pension (SIPP) could be the retirement planning solution to discuss with us.
Many SIPP providers will now permit you to set up a lump sum transfer contribution from another pension with as little as £5,000, and while most traditional pensions limit investment choice to a short list of funds, normally run by the pension company’s own fund managers, a SIPP enables you to follow a more diverse investment approach.
A SIPP will typically accept most types of pension, including:
- Stakeholder Pension Plans
- Personal Pensions Plans
- Retirement Annuity Contracts
- Other SIPPs
- Executive Pension Plans (EPPs)
- Free Standing Additional Voluntary Contribution Plans (FSAVCs)
- Most Paid Up Occupational Money Purchase Plans
You can typically choose from thousands of funds run by top managers as well as pick individual shares, bonds, gilts, unit trusts, investment trusts, exchange traded funds, cash and commercial property (but not private property). Also, you have more control over moving your money to another investment institution, rather than being tied if a fund under-performs.
Investing in commercial property could be a particularly useful facility for owners of small businesses, who can buy premises through their pension funds. There are tax advantages, including no capital gains tax to pay, in using the fund to buy commercial property. The rental income is received tax-free by the fund and when the property is sold, which must be before the pension is drawn.
If you own a business and decide to use the property assets as part of your retirement planning, you would pay rent directly into your own pension fund rather than to a third party, usually an insurance company.
Ordinarily, a business property will, assuming that its value increases, generate a tax liability for the shareholders or partners. Unless, that is, you sell the property to your SIPP.
Before transferring to a SIPP it is important to check whether the benefits, such as your tax-free cash entitlement, are comparable with those offered by your existing pension. Make sure, too, that you are aware of any penalties you could be charged or any bonuses or guarantees you may lose.
If you have had an annual income of £130,000 or more since April 2007 and make regular contributions to a pension, changes announced in the 2009 Budget could affect you. Switching regular contributions to a new pension may mean future regular contributions are subject to a £20,000 limit.
You cannot draw on a SIPP pension before age 55 and you’ll need to be mindful of the fact that you’ll need to spend time managing your investments. Where investment is made in commercial property, you may also have periods without rental income, and in some cases, the pension fund may need to sell on the property when the market is not at its strongest. Because there may be many transactions moving investments around, the administrative costs are higher than those of a normal pension fund.
The value of your SIPP when you draw benefits cannot be guaranteed as it will depend on investment performance. The value of fund units can go down as well as up and investment growth is not guaranteed. The tax benefits and governing rules of SIPPs may change in the future. The level of pension benefits payable cannot be guaranteed as they will depend on interest rates when you start taking your benefits. The value of your SIPP may be less than you expected if you stop or reduce contributions, or if you take your pension earlier than you had planned.
[Blog] Taking control of your existing pensions: Transferring your pensions to a SIPP
If you would like to have more control over your own pension fund and be able to make ... http://ping.fm/bKAMM
If you would like to have more control over your own pension fund and be able to make ... http://ping.fm/bKAMM
[Blog] Taking control of your existing pensions: Transferring your pensions to a SIPP
If you would like to have ... http://ping.fm/vMcod
If you would like to have ... http://ping.fm/vMcod
How to invest for growth, income or both
(My Original Blog Post: http://ping.fm/5waSP)
Whether you want to grow your capital, increase your income or both, this will determine the type of investments you choose. A growth investment is designed to expand the original amount of money you’ve set WHEREAS an income-driven investment is meant to generate regular payments to you, ideally without eating into your money.
Growth investments
An investment grows in value when its price increases and you can sell it for more than you paid for it. The difference between the price you paid and the price for which you sell is known as your capital gain.
Growth investments usually suit people who are willing to keep their money tied up for five years or more. The longer you leave your money invested, the greater the likelihood that you’ll realise a capital gain when you decide to sell.
Although past performance is not an indication of future performance, investors looking to see their assets grow over time should consider investing in the stock market, which is generally considered to be the best home for a long-term investment.
Growth stocks are also less stable than their income-generating counterparts, because there is no guarantee that their value will continue to rise. Many areas of growth tend to be subject to changes in investor sentiment.
Generating An Income
Generating an income from your investment is often an important requirement for people who are retired or approaching retirement or those who need to supplement their salary.
The most popular forms of income investment are bonds (which are also known as ‘fixed income’ investments) and cash, both of which pay a regular, consistent rate of interest either annually, twice a year or four times a year. You can also obtain an income from shares in the form of dividends, and many equity funds are set up solely with the aim of generating a stable income.
Deciding between growth and income investments
How can you decide between growth and income investments? It all depends on your investment time frame, your attitude to investment risk and what you need the investment to provide for you. If you need a regular stream of income, you should focus your portfolio on assets that will help you achieve this, such as cash and bonds that will provide a fixed income. If you have a longer investment time period, or you do not need an immediate income, you should think about a larger allocation to growth-focused investments.
Whatever your preference, if you hold a variety of investments, both growth and income, you should be better prepared for whatever economic ups and downs might be ahead. As your financial situation changes over time, you should also be prepared to make the necessary adjustments to your investment portfolio and switch from growth assets to income as your investment needs change.
The value of investments and the income from them can go down as well as up and you may not get back your original investment. Past performance is not an indication of future performance. Tax benefits may vary as a result of statutory change and their value will depend on individual circumstances. Thresholds, percentage rates and tax legislation may change in subsequent finance acts.
If you feel it is important to obtain impartial investment advice please contact us.
Whether you want to grow your capital, increase your income or both, this will determine the type of investments you choose. A growth investment is designed to expand the original amount of money you’ve set WHEREAS an income-driven investment is meant to generate regular payments to you, ideally without eating into your money.
Growth investments
An investment grows in value when its price increases and you can sell it for more than you paid for it. The difference between the price you paid and the price for which you sell is known as your capital gain.
Growth investments usually suit people who are willing to keep their money tied up for five years or more. The longer you leave your money invested, the greater the likelihood that you’ll realise a capital gain when you decide to sell.
Although past performance is not an indication of future performance, investors looking to see their assets grow over time should consider investing in the stock market, which is generally considered to be the best home for a long-term investment.
Growth stocks are also less stable than their income-generating counterparts, because there is no guarantee that their value will continue to rise. Many areas of growth tend to be subject to changes in investor sentiment.
Generating An Income
Generating an income from your investment is often an important requirement for people who are retired or approaching retirement or those who need to supplement their salary.
The most popular forms of income investment are bonds (which are also known as ‘fixed income’ investments) and cash, both of which pay a regular, consistent rate of interest either annually, twice a year or four times a year. You can also obtain an income from shares in the form of dividends, and many equity funds are set up solely with the aim of generating a stable income.
Deciding between growth and income investments
How can you decide between growth and income investments? It all depends on your investment time frame, your attitude to investment risk and what you need the investment to provide for you. If you need a regular stream of income, you should focus your portfolio on assets that will help you achieve this, such as cash and bonds that will provide a fixed income. If you have a longer investment time period, or you do not need an immediate income, you should think about a larger allocation to growth-focused investments.
Whatever your preference, if you hold a variety of investments, both growth and income, you should be better prepared for whatever economic ups and downs might be ahead. As your financial situation changes over time, you should also be prepared to make the necessary adjustments to your investment portfolio and switch from growth assets to income as your investment needs change.
The value of investments and the income from them can go down as well as up and you may not get back your original investment. Past performance is not an indication of future performance. Tax benefits may vary as a result of statutory change and their value will depend on individual circumstances. Thresholds, percentage rates and tax legislation may change in subsequent finance acts.
If you feel it is important to obtain impartial investment advice please contact us.
[Blog] How to invest for growth, income or both: Whether you want to grow your capital, increase your income or both, this will determine the type of investments you choose. A... http://ping.fm/ZisEF
[Blog] How to invest for growth, income or both: Whether you want to grow your capital, increase your income or bot... http://ping.fm/h96yY
A survival guide to inflation
(My Original Blog Post: http://ping.fm/B7CLH)
Planning for inflationary pressures and the effects on your assets
Rising inflation poses a risk to any investor. Cash and gilts are the most vulnerable asset classes when it comes to erosion from inflation: cash because the returns are generally quite low and gilts because they pay a fixed interest. In contrast, rental income and company earnings tend to rise in line with inflation. Equity income funds, which invest in companies, aim to pay and grow dividends above the rate of inflation.
If you hold a spread of different asset classes you should be reasonably well protected from the return of inflation. If inflationary pressures begin to build you will need to be aware of the effects this could have on your assets. Rising inflation for savers can reduce the real value of their cash, and for those on a fixed income their purchasing power could diminish.
For savers, the rise in inflation is a real concern. Inflationary erosion can have an impact on money left in a savings account, particularly as few savings products now on the market pay a healthy level of interest. Most people only look at the interest rates they are earning and forget the effect of a rising cost of living. If inflation rises, it could decrease the spending power of your funds.
It’s important to make the most of your tax-free savings. Your cash Individual Savings Account (ISA) allowance has increased to £5,100 this year. National Savings & Investments (NS&I) savings certificates are another way to beat inflation and they offer a tax-free return.
Investing in shares is another effective strategy for sheltering your money from inflation over longer periods, as they have the potential to appreciate faster than the rate of inflation. Equity income funds, which invest in companies, can pay and grow dividends above the rate of inflation. Corporate earnings have a good track record of keeping pace with inflation as companies can raise their prices. The compounding effect of reinvesting dividends should also help your money grow ahead of inflation.
Index-linked gilts are government bonds that pay interest calculated with reference to changes in the Retail Prices Index (RPI). The capital value of the investment also changes according to movements in RPI inflation. However, if inflation turns out to be lower than anticipated, your investment value could fall and your income might be lower than expected.
Property is another investment to consider during an inflationary environment. A small exposure to commercial property may be worthwhile to help offset inflationary pressures. It is early days in the recovery, but yields could begin to look more reasonable and there is the prospect of capital growth over the longer term.
Gold also has the ability to retain value over time. It can be bought through an exchange traded fund (ETF) but there will be management charges to consider.
Historically, gold has retained its spending power over very long periods of time, whereas paper currencies are gradually eroded by inflation. An ETF tracks the price by investing in physical gold. It is bought and sold just like ordinary shares.
The impact on pensions and retirement planning will depend on whether the period of inflation is prolonged. The effects of inflation on a pension can be considerable in the long run. Also, if you are in or approaching retirement, the headline inflation rate is only ever part of the story and the actual inflation rate for those in retirement is usually much higher than the official figures.
If you’re a pensioner on a fixed income, price inflation will be a particular concern. It’s important to take the time to review the performance of your portfolio in terms of actual returns. However, if an annuity has already been selected and it is fixed, there may be little that can be done to protect against inflation.
If you are approaching retirement you have a few more options, such as an index-linked pension annuity that escalates either at a fixed rate or in line with price inflation. However, these are more expensive than level annuities and will mean starting at a lower level of income, but while the spending power of your level annuity will fall, the inflation-linked annuity should remain the same.
Another alternative is an unsecured pension, which keeps the pension fund invested while drawing an income. This could mean that you benefit from capital growth in line with inflation and could maintain your purchasing power.
Planning for inflationary pressures and the effects on your assets
Rising inflation poses a risk to any investor. Cash and gilts are the most vulnerable asset classes when it comes to erosion from inflation: cash because the returns are generally quite low and gilts because they pay a fixed interest. In contrast, rental income and company earnings tend to rise in line with inflation. Equity income funds, which invest in companies, aim to pay and grow dividends above the rate of inflation.
If you hold a spread of different asset classes you should be reasonably well protected from the return of inflation. If inflationary pressures begin to build you will need to be aware of the effects this could have on your assets. Rising inflation for savers can reduce the real value of their cash, and for those on a fixed income their purchasing power could diminish.
For savers, the rise in inflation is a real concern. Inflationary erosion can have an impact on money left in a savings account, particularly as few savings products now on the market pay a healthy level of interest. Most people only look at the interest rates they are earning and forget the effect of a rising cost of living. If inflation rises, it could decrease the spending power of your funds.
It’s important to make the most of your tax-free savings. Your cash Individual Savings Account (ISA) allowance has increased to £5,100 this year. National Savings & Investments (NS&I) savings certificates are another way to beat inflation and they offer a tax-free return.
Investing in shares is another effective strategy for sheltering your money from inflation over longer periods, as they have the potential to appreciate faster than the rate of inflation. Equity income funds, which invest in companies, can pay and grow dividends above the rate of inflation. Corporate earnings have a good track record of keeping pace with inflation as companies can raise their prices. The compounding effect of reinvesting dividends should also help your money grow ahead of inflation.
Index-linked gilts are government bonds that pay interest calculated with reference to changes in the Retail Prices Index (RPI). The capital value of the investment also changes according to movements in RPI inflation. However, if inflation turns out to be lower than anticipated, your investment value could fall and your income might be lower than expected.
Property is another investment to consider during an inflationary environment. A small exposure to commercial property may be worthwhile to help offset inflationary pressures. It is early days in the recovery, but yields could begin to look more reasonable and there is the prospect of capital growth over the longer term.
Gold also has the ability to retain value over time. It can be bought through an exchange traded fund (ETF) but there will be management charges to consider.
Historically, gold has retained its spending power over very long periods of time, whereas paper currencies are gradually eroded by inflation. An ETF tracks the price by investing in physical gold. It is bought and sold just like ordinary shares.
The impact on pensions and retirement planning will depend on whether the period of inflation is prolonged. The effects of inflation on a pension can be considerable in the long run. Also, if you are in or approaching retirement, the headline inflation rate is only ever part of the story and the actual inflation rate for those in retirement is usually much higher than the official figures.
If you’re a pensioner on a fixed income, price inflation will be a particular concern. It’s important to take the time to review the performance of your portfolio in terms of actual returns. However, if an annuity has already been selected and it is fixed, there may be little that can be done to protect against inflation.
If you are approaching retirement you have a few more options, such as an index-linked pension annuity that escalates either at a fixed rate or in line with price inflation. However, these are more expensive than level annuities and will mean starting at a lower level of income, but while the spending power of your level annuity will fall, the inflation-linked annuity should remain the same.
Another alternative is an unsecured pension, which keeps the pension fund invested while drawing an income. This could mean that you benefit from capital growth in line with inflation and could maintain your purchasing power.
[Blog] A survival guide to inflation: Planning for inflationary pressures and the effects on your assets
Rising inflation poses a risk to any investor. Cash and gilts are t... http://ping.fm/a54OX
Rising inflation poses a risk to any investor. Cash and gilts are t... http://ping.fm/a54OX
[Blog] A survival guide to inflation: Planning for inflationary pressures and the effects on your assets
Rising ... http://ping.fm/3Mgi9
Rising ... http://ping.fm/3Mgi9
Friday, 16 April 2010
[Blog] Why do I need a Will?: A will is one of the basic building blocks to effective financial planning. It's an e... http://ping.fm/ul11z
Why do I need a Will?
(My Original Blog Post: http://www.consilium-ifa.co.uk/blog/financial-news/why-do-i-need-a-will.php)
A will is one of the basic building blocks to effective financial planning. It's an emotive subject as it reminds us that we are only on this planet for a short period of time. Nobody like to think of leaving their loved ones.
A will can help with effective inheritance tax planning and will instruct your executors what should happen to your assets.
If you do not have a will then the rules of intestacy will apply. This can have serious implications to the way your assets are distributed on your death.
It is especially important if you are unmarried and have children, as your partner will not necessarily have an automatic right to your assets.
Reports over the years have indicated that 70% of the UK's populations either do not have a will or that their will is out of date.
If you are considering reviewing your will , we can offer a comprehensive will writing service. We simply take your instruction and arrange for a qualified legal representative to construct the will for you.
If you would like to contact us to discuss your will writing requirements in more depth, please feel free to contact us on 01454 321511. Alternatively you can email via the contact us page of our website.
A will is one of the basic building blocks to effective financial planning. It's an emotive subject as it reminds us that we are only on this planet for a short period of time. Nobody like to think of leaving their loved ones.
A will can help with effective inheritance tax planning and will instruct your executors what should happen to your assets.
If you do not have a will then the rules of intestacy will apply. This can have serious implications to the way your assets are distributed on your death.
It is especially important if you are unmarried and have children, as your partner will not necessarily have an automatic right to your assets.
Reports over the years have indicated that 70% of the UK's populations either do not have a will or that their will is out of date.
If you are considering reviewing your will , we can offer a comprehensive will writing service. We simply take your instruction and arrange for a qualified legal representative to construct the will for you.
If you would like to contact us to discuss your will writing requirements in more depth, please feel free to contact us on 01454 321511. Alternatively you can email via the contact us page of our website.
[Blog] Why do I need a Will?: A will is one of the basic building blocks to effective financial planning. It's an emotive subject as it reminds us that we are only on this pla... http://ping.fm/xSxME
Thursday, 15 April 2010
[Blog] Regular Investment updates: We have recently launced our investment bulletin. the bulletin investment bulletin will be published each month and gives a snapshot of the ... http://ping.fm/WLZmQ
[Blog] Regular Investment updates: We have recently launced our investment bulletin. the bulletin investment bullet... http://ping.fm/Geto8
Tuesday, 13 April 2010
SME's finding the road to recovery slow
(My Original Blog Post: http://www.consilium-ifa.co.uk/blog/financial-news/smes-finding-the-road-to-recovery-slow.php)
Although the UK may be emerging slowly from recession it seems that small businesses are yet to feel the benefit, according to recent research from uSwitchforBusiness.com.
Small business owners are apparently more pessimistic about the future compared to the end of 2009. Over 50% confirmed that it will take their business more than a year to get back to normal again after the recession, compared to just 26 per cent in Q4 2009.
There is however more optimism in certain sectors. 10% confirmed they are better off than before the downturn. 41 per cent said the recession has left them slightly the worse for wear but believe they are now over the worst, 17 per cent saying that the damage will take some time to overcome.
The findings come from the latest uSwitchforBusiness.com SME Confidence Survey, which tracks small business confidence over time and highlights current issues and concerns facing Britain's small traders.
With recovery now in sight, the biggest challenge facing 43 per cent of businesses is increasing sales and turnover, while getting over the recession is the biggest hurdle for 15 per cent followed by dealing with regulation and red tape - the main challenge for 13 per cent of small businesses this year.
Jake Ridge, small business expert at www.uswitchforbusiness.com, said: "The green shoots of recovery are yet to reach Britain's SMEs and as a result many are finding trading even tougher now than before. They've been through a white knuckle ride and most are not expecting a smooth landing. In fact, 62 per cent are bracing themselves for a further downturn in the economy before it starts to pick up steam again.
"And that's when the real work starts in trying to rebuild their business and boosting sales and turnover – 44 per cent of small businesses anticipate that this process of getting back onto an even keel will take them over a year. The main message coming through is that Britain's small businesses face a long and fragile recovery, but 83 per cent are confident of surviving 2010, suggesting that the majority will get there in the end.”
To talk to us about our small business advice service please contact us on 01454 321511
Although the UK may be emerging slowly from recession it seems that small businesses are yet to feel the benefit, according to recent research from uSwitchforBusiness.com.
Small business owners are apparently more pessimistic about the future compared to the end of 2009. Over 50% confirmed that it will take their business more than a year to get back to normal again after the recession, compared to just 26 per cent in Q4 2009.
There is however more optimism in certain sectors. 10% confirmed they are better off than before the downturn. 41 per cent said the recession has left them slightly the worse for wear but believe they are now over the worst, 17 per cent saying that the damage will take some time to overcome.
The findings come from the latest uSwitchforBusiness.com SME Confidence Survey, which tracks small business confidence over time and highlights current issues and concerns facing Britain's small traders.
With recovery now in sight, the biggest challenge facing 43 per cent of businesses is increasing sales and turnover, while getting over the recession is the biggest hurdle for 15 per cent followed by dealing with regulation and red tape - the main challenge for 13 per cent of small businesses this year.
Jake Ridge, small business expert at www.uswitchforbusiness.com, said: "The green shoots of recovery are yet to reach Britain's SMEs and as a result many are finding trading even tougher now than before. They've been through a white knuckle ride and most are not expecting a smooth landing. In fact, 62 per cent are bracing themselves for a further downturn in the economy before it starts to pick up steam again.
"And that's when the real work starts in trying to rebuild their business and boosting sales and turnover – 44 per cent of small businesses anticipate that this process of getting back onto an even keel will take them over a year. The main message coming through is that Britain's small businesses face a long and fragile recovery, but 83 per cent are confident of surviving 2010, suggesting that the majority will get there in the end.”
To talk to us about our small business advice service please contact us on 01454 321511
[Blog] SME's finding the road to recovery slow: Although the UK may be emerging slowly from recession it seems that small businesses are yet to feel the benefit, according to ... http://ping.fm/yap2f
Monday, 12 April 2010
It?s the start of the Isa season
(My Original Blog Post: http://ping.fm/JanuF)
Why Isa providers concentrate on selling Isa investments to clients at the end of the tax year just doesn’t make sense.
Admittedly most investments are made towards the end of the tax year at the last minute, but there are advantages to making an investment at the start of the tax year.
Since March 2009 stock markets globally have produced healthy returns as major economies come out of recession.
Clients that had invested there Isa allowance in April 2009 would possibly have seen a good return on their investments.
If another good year of returns is achieved then those clients would have had the benefits of two lots of Isa investments made in years where the returns were substantially more than cash.
If they were married and both over the age of fifty, in theory they could have invested up to £40,800 in stocks and shares Isa’s for the two tax years.
However if they invest at the end of the tax year they would have missed out on last years growth and not invest their allowance for the current tax year until 2001.
If you are looking to make the most of your Isa allowances each year then it might be more appropriate to invest at either the beginning of the tax year or alternatively on a regular monthly basis.
Why Isa providers concentrate on selling Isa investments to clients at the end of the tax year just doesn’t make sense.
Admittedly most investments are made towards the end of the tax year at the last minute, but there are advantages to making an investment at the start of the tax year.
Since March 2009 stock markets globally have produced healthy returns as major economies come out of recession.
Clients that had invested there Isa allowance in April 2009 would possibly have seen a good return on their investments.
If another good year of returns is achieved then those clients would have had the benefits of two lots of Isa investments made in years where the returns were substantially more than cash.
If they were married and both over the age of fifty, in theory they could have invested up to £40,800 in stocks and shares Isa’s for the two tax years.
However if they invest at the end of the tax year they would have missed out on last years growth and not invest their allowance for the current tax year until 2001.
If you are looking to make the most of your Isa allowances each year then it might be more appropriate to invest at either the beginning of the tax year or alternatively on a regular monthly basis.
[Blog] It’s the start of the Isa season: Why Isa providers concentrate on selling Isa investments to clients at the end of the tax year just doesn’t make sense.
Admitte... http://ping.fm/nKe9e
Admitte... http://ping.fm/nKe9e
[Blog] It’s the start of the Isa season: Why Isa providers concentrate on selling Isa investments to clients at t... http://ping.fm/nln6B
Thursday, 8 April 2010
UK interest rates stay at 0.5%
(My Original Blog Post: http://www.consilium-ifa.co.uk/blog/investment-advice/uk-interest-rates-stay-at-0-5.php)
The Bank of England have confirmed that interest rates will remain at 0.5%.
Whilst this might be a good time for mortgage holders , the same cannot be said for savers.With savings rates at an all time low you are lucky if you can get 3% on bank based deposits. Savers relying on income may find that they are eating into capital to maintain their standard of living.
A useful resource is the website moneyfacts. They have a comprehensive list of the most current rates available.
An alternative is to look at investing in a broader range of assets such as Bonds, Fixed Interest and Gilts. This might help low risk savers to obtain a potentially better return, but there is a risk of capital depreciation. Although it is not possible to elimate risk from an investment portfolio it is possible to reduce the level of risk with an investment. A carefully constructed investment portfolio can help savers to maintain their level of income , whilst taking a cautious approach to investing.
To find out more about investment advice and how to get a better return on your savings why not contact us.
Consilium Asset Management are Independent Financial Advisers based in chipping Sodbury, Bristol, South Gloucestershire.
The Bank of England have confirmed that interest rates will remain at 0.5%.
Whilst this might be a good time for mortgage holders , the same cannot be said for savers.With savings rates at an all time low you are lucky if you can get 3% on bank based deposits. Savers relying on income may find that they are eating into capital to maintain their standard of living.
A useful resource is the website moneyfacts. They have a comprehensive list of the most current rates available.
An alternative is to look at investing in a broader range of assets such as Bonds, Fixed Interest and Gilts. This might help low risk savers to obtain a potentially better return, but there is a risk of capital depreciation. Although it is not possible to elimate risk from an investment portfolio it is possible to reduce the level of risk with an investment. A carefully constructed investment portfolio can help savers to maintain their level of income , whilst taking a cautious approach to investing.
To find out more about investment advice and how to get a better return on your savings why not contact us.
Consilium Asset Management are Independent Financial Advisers based in chipping Sodbury, Bristol, South Gloucestershire.
[Blog] UK interest rates stay at 0.5%: The Bank of England have confirmed that interest rates will remain at 0.5%.
Whilst this might be a good time for mortgage holders , t... http://www.consilium-ifa.co.uk/blog/investment-advice/uk-interest-rates-stay-at-0-5.php
Whilst this might be a good time for mortgage holders , t... http://www.consilium-ifa.co.uk/blog/investment-advice/uk-interest-rates-stay-at-0-5.php
[Blog] UK interest rates stay at 0.5%: The Bank of England have confirmed that interest rates will remain at 0.5%.
... http://www.consilium-ifa.co.uk/blog/investment-advice/uk-interest-rates-stay-at-0-5.php
... http://www.consilium-ifa.co.uk/blog/investment-advice/uk-interest-rates-stay-at-0-5.php
Wednesday, 7 April 2010
Self invested personal pension
It's a new tax year and the 50% tax rate has just kicked in.
If you're earning over £130,000 your next pay packet will probably give you a shock.
One way to make use of tax efficient investment opportunities is to use pensions as a form of retirement planning. For example a self invested personal pension ( also known as a SIPP) will allow you to construct an investment portfolio that you can tailor to meet your investment objectives. Pensions contributions attract tax relief and the funds once invested grow in a tax efficient manner.
Any income that you take however is taxable as income , part from any tax free cash you might be entitled to.
A sipp can also be used to help plan post retirement as you can use it to take unsecured income rather than purchasing an annuity. Additionally if your religious belief prevent you from purchasing an annuity, at the age of 75 you can continue to take an income in the form of alternatively secured pension benefits.
If you would like to find out about our pension advice service please feel free to contact Consilium Asset Management , or alternatively visit our website at www.consilium-ifa.co.uk .
This article should not be construed as advice. For specific advice on your own personal circumstances please contact us.
If you're earning over £130,000 your next pay packet will probably give you a shock.
One way to make use of tax efficient investment opportunities is to use pensions as a form of retirement planning. For example a self invested personal pension ( also known as a SIPP) will allow you to construct an investment portfolio that you can tailor to meet your investment objectives. Pensions contributions attract tax relief and the funds once invested grow in a tax efficient manner.
Any income that you take however is taxable as income , part from any tax free cash you might be entitled to.
A sipp can also be used to help plan post retirement as you can use it to take unsecured income rather than purchasing an annuity. Additionally if your religious belief prevent you from purchasing an annuity, at the age of 75 you can continue to take an income in the form of alternatively secured pension benefits.
If you would like to find out about our pension advice service please feel free to contact Consilium Asset Management , or alternatively visit our website at www.consilium-ifa.co.uk .
This article should not be construed as advice. For specific advice on your own personal circumstances please contact us.
Consilium launch risk rated funds
(My Original Blog Post: http://ping.fm/CjKvD)
We have recently reviewed how ifa's recommend investment funds.
Following a number of months research we have launched a range of risk rated portfolios for our clients.
Our aim was to produce a low cost range of investment portfolios that can be used in a wide range of products such as pensions, isas, collective investments and lump sum investment bonds.
The ten portfolios are rated from low risk to high risk. Each portfolio is rebalanced each quarter to maintain the ideal investment split.
A combination of passive and active investments are used within each portfolio.
If you would like to find out more about our range of risk rated portfolios please contact us.
Consilium Asset Management provide investment management in Bristol
We have recently reviewed how ifa's recommend investment funds.
Following a number of months research we have launched a range of risk rated portfolios for our clients.
Our aim was to produce a low cost range of investment portfolios that can be used in a wide range of products such as pensions, isas, collective investments and lump sum investment bonds.
The ten portfolios are rated from low risk to high risk. Each portfolio is rebalanced each quarter to maintain the ideal investment split.
A combination of passive and active investments are used within each portfolio.
If you would like to find out more about our range of risk rated portfolios please contact us.
Consilium Asset Management provide investment management in Bristol
[Blog] Consilium launch risk rated funds: We have recently reviewed how ifa's recommend investment funds.
Following a number of months research we have launched a range of ... http://ping.fm/bWlpN
Following a number of months research we have launched a range of ... http://ping.fm/bWlpN
[Blog] Consilium launch risk rated funds: We have recently reviewed how ifa's recommend investment funds.
Follow... http://ping.fm/aFyKc
Follow... http://ping.fm/aFyKc
Wednesday, 31 March 2010
Time to review your will?
(My Original Blog Post: http://ping.fm/84EGu)
Don t leave your beneficiaries with additional heartache and hassle.
People who pass away without an up to date will, or intestate, leave costs and worry to their family and often gift lots of money to the State in what may be avoidable Inheritance Tax (IHT).
The Law Society says that anyone with assets and family or friends should make a will, no matter 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 existing spouse under the rules of survivorship. Under the current intestacy rules, an unmarried partner has no rights to property and assets that were not jointly owned (although the Law Commission has lately proposed to change this).
Making a will is also critical if you have children, as you can propose guardians to look after them.
It is vital to produce a list of assets and debts and their approximate values. Include your properties, investment, nest egg, insurance policies and pensions.
In addition, consider details of specific bequests. Just informing a relative that an item will be his or hers one day could cause problems later.
You should take professional advice on estate planning as part of writing your will. Simple steps could save the beneficiaries of more well-to-do householders thousands of £'s in tax.
An important element of affecting a will is the naming of executors to make sure that your will instructions are executed.
You should also review your will every 5 years or so and whenever your situation are altered by a substantial life event, such as marriage, divorce or a birth or death in the immediate family. Another instance would be after a house purchase or move.
Whoever draws up your will, make sure one copy is kept secure or deposit 1 with a probate registry.
To find out more about our will writing service please go to our website
Don t leave your beneficiaries with additional heartache and hassle.
People who pass away without an up to date will, or intestate, leave costs and worry to their family and often gift lots of money to the State in what may be avoidable Inheritance Tax (IHT).
The Law Society says that anyone with assets and family or friends should make a will, no matter 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 existing spouse under the rules of survivorship. Under the current intestacy rules, an unmarried partner has no rights to property and assets that were not jointly owned (although the Law Commission has lately proposed to change this).
Making a will is also critical if you have children, as you can propose guardians to look after them.
It is vital to produce a list of assets and debts and their approximate values. Include your properties, investment, nest egg, insurance policies and pensions.
In addition, consider details of specific bequests. Just informing a relative that an item will be his or hers one day could cause problems later.
You should take professional advice on estate planning as part of writing your will. Simple steps could save the beneficiaries of more well-to-do householders thousands of £'s in tax.
An important element of affecting a will is the naming of executors to make sure that your will instructions are executed.
You should also review your will every 5 years or so and whenever your situation are altered by a substantial life event, such as marriage, divorce or a birth or death in the immediate family. Another instance would be after a house purchase or move.
Whoever draws up your will, make sure one copy is kept secure or deposit 1 with a probate registry.
To find out more about our will writing service please go to our website
[Blog] Time to review your will?: Don t leave your beneficiaries with additional heartache and hassle.
People who ... http://ping.fm/pKjX8
People who ... http://ping.fm/pKjX8
Tuesday, 30 March 2010
[Blog] : Wherever you are with your retirement plans, do not be put off from taking action, it s not too late. There are still steps you can put into place to increase the pen... http://ping.fm/lEuML
[Blog] : Wherever you are with your retirement plans, do not be put off from taking action, it s not too late. Ther... http://ping.fm/5s7L2
Monday, 29 March 2010
Is it time to review your IHT planning
(My Original Blog Post: http://ping.fm/VoMdB)
If you have an investment or property portfolio, perhaps its time to review your estate. The Chancellors recent announcement to hold the threshold for Inheritance tax planning at £325,000, for the next four years may prompt the move.
Alistair Darling’s decision not to raise the IHT limit is expected to encourage many families and investors with assets over the threshold to review their situation.
Assets such as investments and property could possibly increase in value over the next few years. Effective tax planning could help offset the possible increase in Tax.
Making regular gifts to heirs is another way of reducing your estate liability to inheritance tax.
Another planning measure is making charitable donations, as these are fully exempt upon death.
After the first £325,000 in value of your estate called the “nil-rate” band is reached, the balance is taxed at 40 per cent.
If you would like to discuss any specific tax planning issues please contact us.
Consilium Asset Management is an IFA practice based in Bristol, South Gloucestershire.
If you have an investment or property portfolio, perhaps its time to review your estate. The Chancellors recent announcement to hold the threshold for Inheritance tax planning at £325,000, for the next four years may prompt the move.
Alistair Darling’s decision not to raise the IHT limit is expected to encourage many families and investors with assets over the threshold to review their situation.
Assets such as investments and property could possibly increase in value over the next few years. Effective tax planning could help offset the possible increase in Tax.
Making regular gifts to heirs is another way of reducing your estate liability to inheritance tax.
Another planning measure is making charitable donations, as these are fully exempt upon death.
After the first £325,000 in value of your estate called the “nil-rate” band is reached, the balance is taxed at 40 per cent.
If you would like to discuss any specific tax planning issues please contact us.
Consilium Asset Management is an IFA practice based in Bristol, South Gloucestershire.
[Blog] Is it time to review your IHT planning: If you have an investment or property portfolio, perhaps its time to review your estate. The Chancellors recent announcement to ... http://ping.fm/9vC9E
[Blog] Is it time to review your IHT planning: If you have an investment or property portfolio, perhaps its time to... http://ping.fm/3E1T0
Friday, 26 March 2010
Slight increase to ISA allowances
(My Original Blog Post: http://ping.fm/voggF)
In the recent Budget the Chancellor announced that the ISA allowance is to increase by inflation each year.
Cash ISAs currently offer poor rates of interest however they protect investors from market fluctuations, but not inflation.
The ISA allowances have recently increased as a result of the last pre budget. The allowance moved from £7,200 a year to £10,200 with half of this amount being in cash.
The announcement will add to this by increasing the allowance each year in line with inflation.
The change will be effective from 06 April 2011.
‘The ISA is and should remain the key non-retirement savings vehicle for all. We therefore welcome the government's announcement that the limit will increase each year in line with inflation,’ said Richard Saunders, chief executive of IMA.
In the recent Budget the Chancellor announced that the ISA allowance is to increase by inflation each year.
Cash ISAs currently offer poor rates of interest however they protect investors from market fluctuations, but not inflation.
The ISA allowances have recently increased as a result of the last pre budget. The allowance moved from £7,200 a year to £10,200 with half of this amount being in cash.
The announcement will add to this by increasing the allowance each year in line with inflation.
The change will be effective from 06 April 2011.
‘The ISA is and should remain the key non-retirement savings vehicle for all. We therefore welcome the government's announcement that the limit will increase each year in line with inflation,’ said Richard Saunders, chief executive of IMA.
[Blog] Slight increase to ISA allowances: In the recent Budget the Chancellor announced that the ISA allowance is t... http://ping.fm/aGsAv
ISA surgery, use it or lose it
(My Original Blog Post: http://ping.fm/cZBdy)
If you have not already talked to us about using your 2009/10 Individual Savings Account (ISA) allowance, time is running out. Any unused ISA allowance from this current tax year cannot be rolled over to the next tax year and will be lost forever.
An ISA is a tax-efficient wrapper in which you can hold investments such as cash, shares and stock market funds.
ISAs can be used to save cash and the interest will be tax-free. If you invest in shares or funds, any capital growth will be tax-free and there is no further tax to pay on any dividends you receive.
Your ISA questions answered
Q: Since the ISA contribution limit changes, how much can I now invest?
A: If you were born on or before 5 April 1960 (that is, aged 50 or over during the current tax year) you can save up to £10,200. The full £10,200 can be invested in a stocks and shares ISA with one provider or up to £5,100 can be saved in a cash ISA with one provider, with the remainder being saved in a stocks and shares ISA with either the same provider or another. From 6 April this year, the under 50’s ISA limit will increase to £10,200, up to £5,100 of which can be saved in cash for all ISA investors.
Q: Can I invest the full £10,200 in a cash ISA?
A: No. Although ISA limits have been extended, there are still separate limits for cash ISAs and stocks and shares ISAs. The maximum amount you can save in a cash ISA if you are over 50 is £5,100. If you are under 50 the current limit remains at £3,600. However, from 6 April 2010 this will increase to £5,100 for everyone.
Q: Can I save in a cash ISA and also invest in a stocks and shares ISA at the same time?
A: The limits may have changed but the principle behind ISAs remains the same. From 5 October last year, if you were saving the maximum amount allowable in a cash ISA, at the same time you could also invest the rest of your allowance in a separate stocks and shares ISA – up to the permitted limits.
Q: I am over 50 and have already taken out an ISA this year. Will I be able to increase my ISA?
A: In the vast majority of cases you should be able to pay more into your ISA, up to the new limits. If you already have £3,600 saved in your cash ISA, you should be able to increase this by a further £1,500.
If you would like to discuss Isa Investments in more depth please feel free to contact us on 01454 321511.
If you have not already talked to us about using your 2009/10 Individual Savings Account (ISA) allowance, time is running out. Any unused ISA allowance from this current tax year cannot be rolled over to the next tax year and will be lost forever.An ISA is a tax-efficient wrapper in which you can hold investments such as cash, shares and stock market funds.
ISAs can be used to save cash and the interest will be tax-free. If you invest in shares or funds, any capital growth will be tax-free and there is no further tax to pay on any dividends you receive.
Your ISA questions answered
Q: Since the ISA contribution limit changes, how much can I now invest?
A: If you were born on or before 5 April 1960 (that is, aged 50 or over during the current tax year) you can save up to £10,200. The full £10,200 can be invested in a stocks and shares ISA with one provider or up to £5,100 can be saved in a cash ISA with one provider, with the remainder being saved in a stocks and shares ISA with either the same provider or another. From 6 April this year, the under 50’s ISA limit will increase to £10,200, up to £5,100 of which can be saved in cash for all ISA investors.
Q: Can I invest the full £10,200 in a cash ISA?
A: No. Although ISA limits have been extended, there are still separate limits for cash ISAs and stocks and shares ISAs. The maximum amount you can save in a cash ISA if you are over 50 is £5,100. If you are under 50 the current limit remains at £3,600. However, from 6 April 2010 this will increase to £5,100 for everyone.
Q: Can I save in a cash ISA and also invest in a stocks and shares ISA at the same time?
A: The limits may have changed but the principle behind ISAs remains the same. From 5 October last year, if you were saving the maximum amount allowable in a cash ISA, at the same time you could also invest the rest of your allowance in a separate stocks and shares ISA – up to the permitted limits.
Q: I am over 50 and have already taken out an ISA this year. Will I be able to increase my ISA?
A: In the vast majority of cases you should be able to pay more into your ISA, up to the new limits. If you already have £3,600 saved in your cash ISA, you should be able to increase this by a further £1,500.
If you would like to discuss Isa Investments in more depth please feel free to contact us on 01454 321511.
[Blog] ISA surgery, use it or lose it: If you have not already talked to us about using your 2009/10 Individual Savings Account (ISA) allowance, time is running out. Any unuse... http://ping.fm/e9r3o
[Blog] ISA surgery, use it or lose it: If you have not already talked to us about using your 2009/10 Individual Sav... http://ping.fm/vEkb0
Thursday, 25 March 2010
Record amounts paid into investment funds last year
(My Original Blog Post: http://ping.fm/G8fX5)
Many savers turned their back on high street deposit accounts last year as new figures show a record year for investments.
According to figures from The Investment Management Association (IMA), a record amount was paid into investment funds last year. Consumers invested £25.8bn in unit trusts and open-ended investment companies (OEICs), types of investments that allow individuals to pool money together to buy stocks and bonds.
The figures are the highest since records began in 1992 and 45 per cent higher than the previous record set in 2000, when new investments totalled £17.7bn.
An IMA spokeswoman said: ‘A combination of factors led to this significant increase in 2009. Low returns on savings accounts caused people to look at putting their money into other assets. At the same time, the recession caused them to increase their savings levels.’
In total, £9.9bn was invested in bonds during the year, while £7.3bn went into shares, compared to 2008, when people withdrew £1.3bn more from equities than they invested.
The increase in investments, combined with strong stock market growth during the year, also helped to push up the value of funds under management to record levels.
Many savers turned their back on high street deposit accounts last year as new figures show a record year for investments.According to figures from The Investment Management Association (IMA), a record amount was paid into investment funds last year. Consumers invested £25.8bn in unit trusts and open-ended investment companies (OEICs), types of investments that allow individuals to pool money together to buy stocks and bonds.
The figures are the highest since records began in 1992 and 45 per cent higher than the previous record set in 2000, when new investments totalled £17.7bn.
An IMA spokeswoman said: ‘A combination of factors led to this significant increase in 2009. Low returns on savings accounts caused people to look at putting their money into other assets. At the same time, the recession caused them to increase their savings levels.’
In total, £9.9bn was invested in bonds during the year, while £7.3bn went into shares, compared to 2008, when people withdrew £1.3bn more from equities than they invested.
The increase in investments, combined with strong stock market growth during the year, also helped to push up the value of funds under management to record levels.
[Blog] Record amounts paid into investment funds last year: Many savers turned their back on high street deposit accounts last year as new figures show a record year for inves... http://ping.fm/9kcrb
[Blog] Record amounts paid into investment funds last year: Many savers turned their back on high street deposit ac... http://ping.fm/8qKvq
[Blog] No change for IHT and CGT: The budget as expected was a bit of a damp squibb. With the state of the public finances it’s no surprise that yesterdays budget has been d... http://ping.fm/Ce7y2
No change for IHT and CGT
(My Original Blog Post: http://www.consilium-ifa.co.uk/blog/financial-news/no-change-for-iht-and-cgt.php)
The budget as expected was a bit of a damp squibb. With the state of the public finances it’s no surprise that yesterdays budget has been described as boring.
One surprise was that CGT has not been altered
The rate of tax for mainstream CGT remains at 18% and the annual exempt amount of £10,100 remains unchanged. This means that higher rate taxpayers that have assets that could potentially be subject to CGT will for the time being remain unaffected. Whether this will be the case after the election, we will have to wait and see. However if a labour government is re-elected I would not be surprised if a new budget is announced in the next term of Parliament and changes are then announced.
If you are a higher rate taxpayer with substantial capital gains for example on property or collective investments, it might be worth seeking advice on your tax position.
Inheritance Tax
The 2009 Pre-Budget Report announced that legislation will be introduced in Finance Bill 2010 to freeze the IHT nil-rate band limit for the tax year 2010/11 at the current level of £325,000. This will now be extended to cover the tax years 2011/12 to 2014/15.
However a review on Inheritance tax and Estate planning has been pencilled in for 2011. How this will affect existing Tax planning strategies ,we will have to wait and see.
The budget as expected was a bit of a damp squibb. With the state of the public finances it’s no surprise that yesterdays budget has been described as boring.
One surprise was that CGT has not been altered
The rate of tax for mainstream CGT remains at 18% and the annual exempt amount of £10,100 remains unchanged. This means that higher rate taxpayers that have assets that could potentially be subject to CGT will for the time being remain unaffected. Whether this will be the case after the election, we will have to wait and see. However if a labour government is re-elected I would not be surprised if a new budget is announced in the next term of Parliament and changes are then announced.
If you are a higher rate taxpayer with substantial capital gains for example on property or collective investments, it might be worth seeking advice on your tax position.
Inheritance Tax
The 2009 Pre-Budget Report announced that legislation will be introduced in Finance Bill 2010 to freeze the IHT nil-rate band limit for the tax year 2010/11 at the current level of £325,000. This will now be extended to cover the tax years 2011/12 to 2014/15.
However a review on Inheritance tax and Estate planning has been pencilled in for 2011. How this will affect existing Tax planning strategies ,we will have to wait and see.
[Blog] No change for IHT and CGT: The budget as expected was a bit of a damp squibb. With the state of the public f... http://ping.fm/mWNsa
Wednesday, 10 March 2010
[Blog] Budget Day Announced: Alistair Darling and the Treasury have confirmed that the date of the budget is to be ... http://ping.fm/PZbAH
[Blog] Budget Day Announced: Alistair Darling and the Treasury have confirmed that the date of the budget is to be the 24th March.
The Chancellor will hopefully provide the... http://ping.fm/wi6GN
The Chancellor will hopefully provide the... http://ping.fm/wi6GN
Budget Day Announced
(My Original Blog Post: http://ping.fm/WpsOr)
Alistair Darling and the Treasury have confirmed that the date of the budget is to be the 24th March.
The Chancellor will hopefully provide the UK with details on how Britain’s £178 billion deficit will be tackled. He is due to make a speech on the economy today.
The Budget date makes it more likely that the general election will happen on the 6 May. Council Polls are also to take place on this date.
A detailed Budget summary will appear on our site www.consilium-ifa.co.uk
Alistair Darling and the Treasury have confirmed that the date of the budget is to be the 24th March.
The Chancellor will hopefully provide the UK with details on how Britain’s £178 billion deficit will be tackled. He is due to make a speech on the economy today.
The Budget date makes it more likely that the general election will happen on the 6 May. Council Polls are also to take place on this date.
A detailed Budget summary will appear on our site www.consilium-ifa.co.uk
Monday, 8 March 2010
Not long till the end of the isa season
(My Original Blog Post: http://ping.fm/07Nri)
Considering making an isa investment for the current tax year.
Our ISA guide is available free to download here.
Considering making an isa investment for the current tax year.
Our ISA guide is available free to download here.
[Blog] Not long till the end of the isa season: Considering making an isa investment for the current tax year.
Our ISA guide is available free to download here. http://ping.fm/TzSN1
Our ISA guide is available free to download here. http://ping.fm/TzSN1
[Blog] Not long till the end of the isa season: Considering making an isa investment for the current tax year.
O... http://ping.fm/LKMrY
O... http://ping.fm/LKMrY
[Blog] Stroud and Swindon Merger: Coventry Building Society has held talks with Stroud & Swindon over a possible merger.
Both Societies are mutuals. A merger between Co... http://ping.fm/Me1xf
Both Societies are mutuals. A merger between Co... http://ping.fm/Me1xf
Stroud and Swindon Merger
(My Original Blog Post: http://ping.fm/zC0TL)
Coventry Building Society has held talks with Stroud & Swindon over a possible merger.
Both Societies are mutuals. A merger between Coventry,which is the third largest building society in the UK, and Stroud and Swindon , which is much smaller rival will create an organisation with £21 billion of assets and 1.2 million customers.
Stroud and Swindon have confirmed that talks are at a very early stage.
Stroud has £3 billion in assets with 265,000 members.
Coventry have recently reported pre-tax profits of £56.2 million.
Consilium Asset Management are Financial Advisers based in Bristol
Coventry Building Society has held talks with Stroud & Swindon over a possible merger.
Both Societies are mutuals. A merger between Coventry,which is the third largest building society in the UK, and Stroud and Swindon , which is much smaller rival will create an organisation with £21 billion of assets and 1.2 million customers.
Stroud and Swindon have confirmed that talks are at a very early stage.
Stroud has £3 billion in assets with 265,000 members.
Coventry have recently reported pre-tax profits of £56.2 million.
Consilium Asset Management are Financial Advisers based in Bristol
[Blog] Stroud and Swindon Merger: Coventry Building Society has held talks with Stroud & Swindon over a possibl... http://ping.fm/YmZ4u
Tuesday, 2 March 2010
NEST - What is it?
(My Original Blog Post: http://ping.fm/31peY)
The Personal Accounts Delivery Authority (Pada) confirmed which company is to administer the new NEST Scheme (formerly Personal accounts).
PADA confirmed that Tata Consultancy Services (TCS) will provide the administration of the scheme when it is launched. Pada will sign a contract with TCS later this month.
The NEST will force employers to contribute to a pension arrangement on behalf of their employees. Employees will also be required to contribute.
Employers will either automatically enrol employees into the scheme or provide an alternative arrangement that meets certain criteria.
To find out more about pension advice and employers responsibility when the Nest scheme is launched click on the links.
Angela Eagle, minister of state for pensions, said: 'Together with automatic enrolment, Nest will help millions of people save for their retirement, with a guaranteed employer and Government contribution.'
The Personal Accounts Delivery Authority (Pada) confirmed which company is to administer the new NEST Scheme (formerly Personal accounts).
PADA confirmed that Tata Consultancy Services (TCS) will provide the administration of the scheme when it is launched. Pada will sign a contract with TCS later this month.
The NEST will force employers to contribute to a pension arrangement on behalf of their employees. Employees will also be required to contribute.
Employers will either automatically enrol employees into the scheme or provide an alternative arrangement that meets certain criteria.
To find out more about pension advice and employers responsibility when the Nest scheme is launched click on the links.
Angela Eagle, minister of state for pensions, said: 'Together with automatic enrolment, Nest will help millions of people save for their retirement, with a guaranteed employer and Government contribution.'
Monday, 1 March 2010
Pru clinches mega deal
(My Original Blog Post: http://ping.fm/u0Grg)
Prudential, the UK life insurer, has agreed to buy the Asian operations of AIG. An agreed price of $35.5bn in cash and shares makes it one of the largest deals in UK history.
The deal combines the largest insurance businesses in Asia. The deal doubles the size of Prudential and will make the region a key contributor to profits within the group.
The deal will be structured as an acquisition of both Prudential and AIA by a new company, to be known initially as New Prudential.
It is reported that Prudential will pay $25bn in cash and 10.5bn in shares of the enlarged company. The company headquarters will be in the UK and will be listed on the UK Stock Exchange. It is also anticipated that the company will also be listed on the US stockmarkets
AIG has planned a partial floatation of the Asian part of the group, but shelved the idea in preference to the deal with the Pru.
“I think that transformational is an overused word but this deal is truly transformational,” said Tidjane Thiam, chief executive of Prudential. “We have the full support of the AIG board and the US authorities,” he added.
The takeover increases Prudential’s exposure to Asia, which accounted for 44 per cent of new business in 2009. Prudential have confirmed that the UK life assurance sector is still an important part of the groups overall activity.
Prudential, the UK life insurer, has agreed to buy the Asian operations of AIG. An agreed price of $35.5bn in cash and shares makes it one of the largest deals in UK history.The deal combines the largest insurance businesses in Asia. The deal doubles the size of Prudential and will make the region a key contributor to profits within the group.
The deal will be structured as an acquisition of both Prudential and AIA by a new company, to be known initially as New Prudential.
It is reported that Prudential will pay $25bn in cash and 10.5bn in shares of the enlarged company. The company headquarters will be in the UK and will be listed on the UK Stock Exchange. It is also anticipated that the company will also be listed on the US stockmarkets
AIG has planned a partial floatation of the Asian part of the group, but shelved the idea in preference to the deal with the Pru.
“I think that transformational is an overused word but this deal is truly transformational,” said Tidjane Thiam, chief executive of Prudential. “We have the full support of the AIG board and the US authorities,” he added.
The takeover increases Prudential’s exposure to Asia, which accounted for 44 per cent of new business in 2009. Prudential have confirmed that the UK life assurance sector is still an important part of the groups overall activity.
[Blog] Pru clinches mega deal: Prudential, the UK life insurer, has agreed to buy the Asian operations of AIG. An agreed price of $35.5bn in cash and shares makes it one of th... http://ping.fm/RDHCN
[Blog] Pru clinches mega deal: Prudential, the UK life insurer, has agreed to buy the Asian operations of AIG. An a... http://ping.fm/Czmcx
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