Views
1 year ago

Devonshire February March 17

Devon's Countryside, Wildlife, History and Events

MANAGING your MONEY "the

MANAGING your MONEY "the hardest thing in the world to understand is income tax" Albert Einstein Celebrating 26 years of providing independent financial advice in Devon for 2017 As Einstein so rightly pointed out, "the hardest thing in the world to understand is income tax". This year however, make some resolutions to arrange your finances to minimise tax and maximise returns. Did you manage to benefit from the last round of National Saving and Investment`s 65+ bonds which were paying 4% p.a. (for a 3 year bond) and 2.8% p.a. (for a 1 year bond) ? If not, you`re likely to be kicking yourself at the moment with most banks and building societies currently offering very low rates . There is another tranch of bonds to be issued this year by National Savings. In the last Budget, the Chancellor announced that new bonds from National Savings & Investments are on the cards for spring 2017 and will be offering 2.2% p.a., allowing up to £3,000 each to be invested for those aged 16 and over. Not a large allowance but an attractive interest rate which, if you qualify for the new £1,000 savings allowance (for basic rate tax payers) or £500 savings allowance( for higher rate taxpayers) will mean a tax free return. This is an attractive option for smaller amounts in general. A more difficult task is finding an attractive home for larger cash holdings and I believe you will struggle to secure much more than 1% p.a. at the moment. Make sure you review everything and try to get the best rates. It might be that you need to produce more income, in which case you may need to consider taking more risk and looking outside the bank and building society for your returns. Don`t forget that the new cap on compensation for bank and building society deposits is now £75,000. Making use of stocks and shares ISA allowances are useful in tax planning. The interest on the underlying investments can be reclaimed for you by the ISA manager, the holdings are free from Capital Gains Tax and any income taken is non-reportable for tax purposes. Making use of a platform An often heard statement is: "I don`t believe in pensions" can also help you to make savings in charges and add the opportunity for diversity to your investments. In terms of personal pensions, I have, for many years tried to help investors understand the benefits of tax relief in this area. It`s normally woefully misunderstood by the vast majority of the British public, who still mistrust pensions and pension funds and often even make efforts to avoid this investment altogether. An often heard statement is that "I don`t believe in pensions". In fact, making a pension contribution can help in a variety of ways especially when considering such aspects as the Child Benefit Trap which affects earners of £50,000 and over. Making a pension contribution can help you avoid this trap as well as help you benefit from tax relief. At £50,000 people with children begin to lose child benefit. Additionally, company directors may find that funding a pension can help them remain tax efficient especially in view of the fact that taking dividends over £5,000 now means a tax bill. Investing in a personal pension is attractive from an IHT position as well, because wealth can now be passed down the generations in a drawdown plan. If you`ve forgotten about IHT, then you`ll be interested to know that the Capital Taxes office is taking more than ever in IHT. In the 2015/16 tax year IHT receipts reached £4.6 billion with over 40,000 estates being affected.* The reason that it has grown so much has much to do with fiscal drag (which raises extra money because tax allowances do not rise with inflation). IHT, often known as the voluntary tax, affects estates over £325,000 (£650,000 for couples) and the current tax rate for IHT is 40%. The £325,000 allowance hasn`t increased for many years and therefore many more people are paying this tax. Another reason Helen Mulvaney BA (Hons), Dip M, DipPFS Proprietor of RICHMOND INDEPENDENT Helen has been advising clients in the East Devon for the past 26 years and specialises in the provision of retirement and investment advice. richmondindependent.co.uk 01395 512166 for the increasing tax is the rise in house prices and shares. Planning is essential if you want to save tax in this area because the tax is time sensitive. However, if you are in reasonable health and aged under 90 you could benefit from using a BPR scheme which would allow you to achieve an immediate shelter from IHT. For many this could result in a substantial tax saving. Over the next 3 years, the new family home allowance will be gradually introduced, but this does have qualification rules and not everyone can benefit. * Statistics from HMRC receipts data The article is for information only, it is recommended that you seek independent advice before taking any action. Please note that investment returns can go down as well as up and you might not get back your original investment. Pensions are long term investments and pension legislation can and does change with time. Helen Mulvaney Richmond Independent is a trading name of Investment & Financial Solutions Partnership LLP which is authorised and regulated by the Financial Conduct Authority 98 Countryside, History, Walks, the Arts, Events & all things Devon at: DEVONSHIRE magazine.co.uk

“Our personal attention assures your satisfaction” REMOVALS Export Packing & Shipping Full or Part Loads Fully Insured to BAR Standards Experienced, Friendly and Reliable Staff Professional Packing Local and Nationwide Containerised Secure Storage batersremovals.co.uk gilboys.co.uk For the right move in East Devon, speak to Sue. Tipton St John, Sidmouth EX10 0JX Peter Findlay Tax Consultant & Business Adviser 01395 568568 peter_findlay@btconnect.com Unit 2, Dotton Farmstead, Newton Poppleford, Sidmouth. Tax returns from £130 (plus VAT) Accounts & tax returns from £210 (plus VAT) CHARTERED TAX ADVISER Covering all areas of accountancy - accounts preparation, tax returns, VAT, book-keeping, payroll, company and new business set-ups. Providing a friendly service for a variety of businesses large and small. Fixed fees, free initial consultation. you can place your trust in us french polishing - furniture restoration - showroom hubcast .co.u k 99

Devonshire magazine November December 2018
Devonshire September October 2018
Devonshire Oct to Dec 17
Devonshire April May 17
Devonshire December 16 January 17
Devonshire August September 16
Devonshire June July 16