FPC Budget comment
No real surprises
Aside from the controversial “granny tax” there was little to surprise us in the budget due to the advance announcements that the 50% tax rate would reduce to 45% from April 2013 and personal allowances would be increased.
The Budget impact on the economy
The pro-business sentiments may well encouraged big businesses to push more of their profits through the UK and this can only be welcomed.
We asked Peter Stanyer, our independent economic consultant to share his view of the Budget and consider its implications for the economy and investors.
Paul is in it for the long run!
Completing the Liverpool Half Marathon in under 2 hours
Paul Welsh, FPC financial planner, ran the Liverpool Half Marathon on 18th March this year in aid of the Mango Tree. He has been taking his training very seriously over the last three months, mainly by running with his childhood friend round the Crosby/Blundellsands area of Liverpool.
Pre-budget rumours
A tax on housing?
This year’s budget is on 21st March and speculation is mounting over what will be announced and how it will affect our finances and long-term planning.
One area of concern is the Lib Dem’s proposal for a Mansion Tax, or possibly extending Capital Gains Tax to main residences above a certain value.
Peter Stanyer comments on the economic and investment implications of this thorny subject.
Flying the Chartered Flag
FPC – one of the first UK firms awarded Chartered Financial Planner status – the industry’s gold standard.
If you consult an accountant, doctor or solicitor you expect them to be fully qualified to a high standard – so why should you accept anything less from a financial adviser and what qualifications should you look for in an adviser?
It’s Financial Planning Week in the UK
But, meanwhile in Europe …
Whilst the benefits of financial planning are being promoted to individuals in the UK, it is clear that the €urozone would also benefit from some comprehensive financial planning.
The politicians are still “kicking the can down the road” and with Greece, Italy and now Spain changing the team at the top we wonder who is next for the chop?
Merkel, Sarkozy and Obama all face re-election in 2012 and it would appear that as a result, rather than deal with the unpleasant consequences of their plight, they are all avoiding taking the decisive action that is required.
Index-Linked bonds – an attractive prospect… or not?
FPC has warned that inflation should be feared and the combination of high inflation and very low interest rates for money held on deposit has led many savers to look for better returns elsewhere.
Sadly, the recent issue of National Savings and Investments (NS&I) tax free Index Linked Savings Certificates proved too popular and were quickly withdrawn.
Not missing a trick, this gap in the market is being filled by similar-looking offerings from several major banks and even the National Grid and the Post Office.
But are they as attractive as they might first appear?
Start Financial Planning early
And help children learn the value of money
According to new research produced by Clydesdale and Yorkshire Banks – almost half of parents believe that teaching children the value of money is one of the most important lessons in life but very little financial education takes place at school.
Junior ISAs
Teaching a young person to operate and manage their finances with a day to day bank account is a good place to start and from 1st November, millions of children (aged under 18) also became eligible for a Junior ISA, which replaces the Child Trust Fund (CTF).
An overall annual limit of £3,600 per tax year can be invested and this limit will rise annually in line with inflation, starting in the 2013/14 tax year.
The account is opened by the person with parental responsibility for the child and from age 16 they can manage the investment until they assume full ownership from the age of 18.
Anyone starting to twitch yet?!
Secure pensions tax relief
At 50% or 60% or even more!
The maximum pension contribution on which an individual can receive tax relief has been reduced to £50,000, but there is an opportunity for some individuals to carry forward unused annual allowances from up to three previous tax years.
In certain circumstances, a contribution of up to £200,000 can be paid in the current tax year and tax relief obtained at your top rate.
This could be 50%, or 60% if you get your personal allowance back (it is progressively lost if your taxable income is between £100,000 – £115,000) or even more if you organise an employer contribution through salary sacrifice and save the employer’s NIC too!
Pensions funding for your children?
It is possible to set up a pension for your children and grandchildren and fund a stakeholder pension arrangement for them. The gift falls within your annual £3,000 allowance for Inheritance Tax purposes and is grossed up with basic rate tax relief.
But is it a good idea?
