Financial News Update we 30/04/2010

I hope you have had a good week?...

Well, it looks as though we are down to two candidates now or is it just the one?... http://news.bbc.co.uk/1/hi/uk_politics/election_2010/8652354.stm

Other than that, some interesting pieces, including news on how much is still wasted on Inheritance Tax as well as the fears over social care funding.

Also how badly affected are our pensions?...

Have a great Bank Holiday weekend!...

Estate Planning

Millions wasted in poor Inheritance tax planning http://ow.ly/17c1L2

Long Term Care

Fears Tories would take axe to social care funding http://bit.ly/bEAu70
Talks extended on NHP £1.1bn Debt shake-up http://bit.ly/cxHyAD

Retirement

How the recession bruised our pensions http://ow.ly/179Frc
Pensioners lose out by delaying annuities too long http://ow.ly/17akVF
Home reversion - Equity release explained - Your money - Which? Advice http://ow.ly/17buRh

Investments

FTSE holds firm amid downbeat news http://bit.ly/c4MqJO
FSA investigates RBS and Lloyds over complaints handling http://bit.ly/abZv5T
UK should start saving now for next crisis http://bit.ly/933WCZ

Regards
Kieron

Financial News Update we 09/04/2010

Well, I hope you had a good Easter and have recovered from any chocolate overload?... We now have enough chocolate to feed a small army although I am assured by my wife and children that it “won’t last long…”?!!

So, we have a date, or as someone else put it, the “worst kept secret” confirmed for the election on May 6th - Let’s hope the parties can actually produce a worthwhile cause to vote for… well let’s hope eh?!

Estate Planning

Will writing regulation, England and Wales http://bit.ly/dlN1XM
James Hall: Take care with charitable wills http://bit.ly/d75hSg
Parents: Hold on to your purse strings http://bit.ly/a0N5XL
Mitigation, mitigation, mitigation http://bit.ly/d8Tmfw

Long Term Care

It now costs more to keep your granny in an "average" care home for a year than it does to educate a child at Eton http://bit.ly/dr4d1r
General Election 2010: where the political parties stand on long-term care http://bit.ly/acPGtl

Retirement

Can equity release help older home-owners improve their quality of life? http://bit.ly/ccB12N
Pensions and personal tax http://bit.ly/cAnE68
General Election 2010: remove politics from pensions, urges Friends Provident http://bit.ly/9X0XXt

Investments

The Isa rip-offs that are costing us all a fortune http://bit.ly/ah4aqR
Millions prepare to count the cost of new tax regime http://bit.ly/9hJ00v
HMRC warns kick-out plans may break ISA rules http://bit.ly/9VbNDA

Have a good weekend!

Regards
Kieron

http://www.wealthifa.com

Financial News Update we 26/3/2010

So how was it for you? Perhaps you feel, as many do, it was the calm before the storm as, no doubt, there will be another as soon as we find out who is ruining, sorry running the country?!

Although there were no great surprises, as most of the announcements had already been made, there were some good, as well as some not so good, news from Wednesdays budget.

Income Tax

The fact that the Personal Allowance & Higher Rate Tax Threshold was frozen may mean that more people will fall into higher rate tax (40 per cent) purely because of normal increments in pay.

Although previously announced it is worth reminding of the new 50% top rate on income over £150,000 (dividends rate is 42.5%) as this will obviously mean the need for advice is increased too.

Some of the more pertinent announcements and the planning opportunities for those affected could include:

Estate Planning

• IHT Nil Rate Band - frozen at £325,000 and this will apply for the next 4 years which may mean if/when assets recover more people will be caught by IHT. Planning for the impact of IHT will remain an important aspect of advice for many people.
• Entrepreneurs Relief – doubled to £2m enabling a greater saving against CGT for those business owners who sell.
• CGT rate 18% - this was somewhat of a surprise given the increase in income tax rates so perhaps those affected by the higher rates should certainly consider investing for capital growth as opposed to income even if only to use their CGT annual exemption of £10,100.
• Tax Rebates paid by the beneficiaries of settlor interested trusts may have to be paid into the trust i.e. if the beneficiary is the settlor and pays a lower rate of tax than the trustees. However, this additional payment to the trust is not subject to Inheritance Tax.

Retirement

• Tax relief on investments, i.e. pensions. Even where the new anti-forestalling rules apply making sure contributions of up to £20,000 (£30,000 in some cases) are paid in 2009/10 and 2010/2011 are used to qualify for full higher rate tax relief. Anyone with relevant income below £130,000 should perhaps consider how to maximise pension contributions as this limit could be reduced in the future?
• Reducing Income through Pension contributions (Salary Sacrifice) as the Personal Allowance will be restricted by £1 for every £2 of taxable income over £100,000 – effectively a 60% rate of tax for those with income between £100,001 and £112,950
• Lifetime Allowance freezing may be of particular significance to those whose pre A-Day protected tax free cash benefit could be gradually whittling away.
• As noted above those with relevant earnings above £150,000 will find restriction in the tax relief on pension contributions. The definition of relevant income includes employer pension contributions where income excluding this is £130,000 or more.

Investments

• Maximise the use of reliefs, exemptions and lower bands of income tax with transfers to spouses/civil partners.
• ISA’s may prove even more valuable as tax rates increase and with the ISA limit increase to £10,200 per annum (for all investors from 6 April 2010), the ability to shelter more can only be a good thing?
• Offshore Bonds Investments (which offer gross roll-up and control over the time of tax payment) may also be attractive for some.

Other points to note

• National Insurance - increase by 1% for the self employed, employees and employers from April 2011.
• Stamp Duty Land Tax - increase for properties over £1,000,000 to 5% from April 2011 and a nil rate band for first time buyers up to £250,000 for the next few years.
• Possible moves to bring AIM shares in line with the advantages of an ISA investment

If you spotted any others please do let me know?

Oh well, now we just have the election hype to contend with!!

Have a good weekend…

Regards
Kieron

http://www.wealthifa.com

Financial News Update we 19/3/2010

Hope you have had a good week?

Before we look at this week’s articles, this one caught my eye, after all, how many times do you hear “no we are a very close family”?!...

Woman ordered to quit 92-year-old mother's home http://bit.ly/9QWker

Estate Planning

Law Commission proposes new Bill to sort out tainted trusts http://bit.ly/bqFWXU
Tax dispute over pension death benefit left to trust http://bit.ly/be7fp9
Non-dom status: do you qualify? http://bit.ly/dbCfNT

Long Term Care

Care providers slam CQC for handling of registration process http://bit.ly/cJQmdE
MPs: Let public decide on fully tax-funded social care http://bit.ly/9jj0aM
What a wonderful job! http://bit.ly/bepQoe

Retirement

Initial charge for new pension set at 2% http://bit.ly/93peYT
Five questions about: Pension rule changes http://bit.ly/9RTeEG

Investments

We explode the 10 most common myths about Isas http://bit.ly/9zGi09
Tax benefits draw investors to start-ups http://bit.ly/afvQRr
How can you reduce the Treasury's take? http://bit.ly/daewNc

Have a good weekend

Regards
Kieron

http://www.wealthifa.com