mra money september october 2013

7/29/2019 MRA Money September October 2013

1/12

Mike Robertson Associates Ltd

30a High Steet, High Street, Battle, East Sussex, TN33 0EA

Tel: 01424 777156 Fax: 01424 775668

Email: [email protected] Web: www.mraltd.com


2/12

IN THIS

ISSUE

CONTENTS

02

Wlcom to th latst iss o

or magazin crammd ll o

articls abot how w can hlp

o grow and protct or walth.

Som instors ma ha

had a rollr-coastr rid in

rcnt ars. A mart all can

happn at an tim. In ars

past, th bn triggrd b

natral disastrs, oil pric spis,

wars, ban collapss and now

thrs th rozon dbt crisis.Th ralit is that mart swings

happn otn, and whn th

do, it can b nsttling or man

instors. On pag 06 w loo at

how o can rdc th pas

and troghs o insting.

Th diagnosis o a srios

illnss can man a r diclt

tim or or halth and or

walth. On pag 08 w loo at

how critical illnss cor can

proid ital nancial scrit

whn o nd it most. Most

hombrs prchas li

assranc whn th arrang a

mortgag, bt orloo critical

illnss cor, anothr orm o

nancial protction that w ar

statisticall mor lil to nd

bor raching rtirmnt.

On pag 10 w also amin

wh ting th not can bring

nancial adantags to th

rlationship. Ta and pnsions

ar probabl th last romantic

rasons or gtting marrid, bt

w considr or was to bnt

rom or marital stats.

A ll list o all th articls atrd

in this dition appars opposit.

We hope you enjoy

reading the magazine.

to discuss your

financial planning

requirements or

to obtain furtherinformation, please

contact us.

Th contnt o th articls atrd in this pblication is or or gnral inormation and s onl and is not intndd to addrss or particlar

rqirmnts. Articls shold not b rlid pon in thir ntirt and shall not b dmd to b, or constitt, adic. Althogh ndaors ha

bn mad to proid accrat and timl inormation, thr can b no garant that sch inormation is accrat as o th dat it is rcidor that it will contin to b accrat in th tr. No indiidal or compan shold act pon sch inormation withot rciing appropriat

prossional adic atr a thorogh amination o thir particlar sitation. W cannot accpt rsponsibilit or an loss as a rslt o acts or

omissions tan in rspct o an articls. Thrsholds, prcntag rats and ta lgislation ma chang in sbsqnt Financ Acts. Lls and

bass o, and rlis rom, taation ar sbjct to chang and thir al dpnds on th indiidal circmstancs o th instor. Th al o

or instmnts can go down as wll as p and o ma gt bac lss than o instd.

New offshore horizoNsTa or mon whn it sits o

estate preservatioNHlping o to loo atr and maintain

or walth in th most cint wa

BuildiNg New uNtouchedpeNsioN saviNgsAn opportnit to potntiall

impro ta-cinc

surviviNg

iNvestmeNt volatilityRsisting th tmptation to ma

short-trm adjstmnts

real help wheNyou Need it mostA r diclt tim or or halth

and or walth

we caNt coNtrolfate But we caNcoNtrol our fiNaNcesLaing or proprt and possssions

to or lod ons

BaNd of goldAr o bnting nanciall

rom or marital stats?

time to aimfor higher returNsTaing a dirnt approach to

instmnts can gnrat

gratr walth

03 09

10

12

04

05

06

06

08

coNteNts SEPTEMBER/OCTOBER 2013

to discuss your fiNaNcial

plaNNiNg requiremeNts or to

oBtaiN further iNformatioN,

please coNtact us.

09

04

05


3/12

INvESTmENT

n Arranging a nancial walth chc

n Bilding an instmnt portolio

n Gnrating a biggr rtirmnt

incom

n O-shor instmnts

n Ta-cint instmnts

n Famil protction in th nt oprmatr dath

n Protction against th loss

o rglar incom

n Proiding a capital sm i Im diagnosd

with srios illnss

n Proision or long-trm halth car

n School s/rthr

dcation nding

n Protcting m stat rom

inhritanc ta

n Capital gains ta planning

n Corporation ta/incom ta planningn Dirctor and mplo

bnt schms

n Othr (plas spci)

FOR MORe INFORMATION PLeASe TICk THeAPPROPRIATe BOx OR BOxeS BeLOW,

INCLuDe yOuR PeRSONAL DeTAILS ANDReTuRN THIS INFORMATION DIReCTLy TO uS.

You voluntarily choose to provide your personal details. Personal inormation will be treated as condential by us and held in accordance with the Data

Protection Act. You agree that such personal inormation may be used to provide you with details and products or services in writing or by telephone or email.

want to make more

of your moNey iN 2013?

neW offshore horizonst h

Oshor bonds proid an

opportnit or or assts to grow

in a ta-r nironmnt. Th

also allow o to choos whn an

ta liabilit bcoms paabl. Thr

ar a nmbr o othr ta bnts with oshor

bonds, spciall i o ha spnt tim liing

abroad. Bt th ar compl strctrs that

rqir prossional nancial adic.

Whil man instors will b awar that

insting in an Indiidal Saings Accont

(ISA) or pnsion can hlp rdc thir ta

bill, o ma b lss amiliar with oshor

bonds. Li pnsions and ISAs, oshor

bonds ar ctil wrapprs into which

o plac or instmnts, or ampl,

nds or cash. Th ar ord b li

insranc companis which oprat rom

intrnational nanc cntrs.

Th main ta bnt o insting in an

oshor bond is gross roll-p. This mans that

an ndrling instmnt gains ar not sbjct

to ta at sorc apart rom an lmnt o

withholding ta. With an onshor bond, li nd

ta is paabl on incom or gains mad b th

ndrling instmnt. This mans or oshor

instmnt has th potntial to grow astr than

on in a tad nd.

As long as instmnts ar hld within th

oshor bond wrappr, o dont pa an incom

ta or capital gains ta on thm and o can

switch btwn dirnt nds ta-r. Whil

o do ha to pa ta on an gains whn o

withdraw assts, thr ar a nmbr o was o

can potntiall rdc th amont o pa.

yo can withdraw p to 5 pr cnt o or

initial instmnt r ar or 20 ars, and

dr paing ta ntil a latr dat. I o ar a

highr-rat tapar now bt pct to bcom

a basic-rat tapar whn o rtir, o can

dr cashing in or assts ntil rtirmnt and

possibl pa hal th ta d on an gain ralisd.

yo can assign (transr ownrship) an

oshor bond or parts o it as a git withot

th rcipint incrring an incom or capital gainsta, althogh this ma cas an Inhritanc Ta

(IHT) liabilit i o wr to di within sn ars.

All tr ta on withdrawals will b chargd

at th nw ownrs ta rat, i an. This can b

a ta-cint wa to hlp nd or childrns

nirsit s, or ampl, sinc or childrn

ar lil to b low or non-arnrs as stdnts.

Ptting an oshor bond in a trst cold

hlp or amil rdc or aoid IHT, proidd

o li or sn ars atr stting it p. n

Thresholds, percentage rates and tax

legislation may change in subsequent Finance

Acts. Levels and bases o, and relies rom,

taxation are subject to change and their value

depends on the individual circumstances o the

investor. The value o your investments can go

down as well as up and you may get back less

than you invested.

Finding th right oshor instmnts can b a actor in maing th most

o or walth, and its not onl or th walthist o instors. With a w

wll-adisd dcisions o cold broadn or instmnt portolio.

as loNg as iNvestmeNts areheld withiN the offshore BoNd

wrapper, you doNt pay aNyiNcome tax or capital gaiNs taxoN them.

Nam

Addrss

Postcod

Tl. (hom)

Tl. (wor)

Mobil

email

seek professioNal advice

For mor inormation on insting

with s, or to discss or

rqirmnts, plas contact s.


4/12

waNt to give your familylastiNg BeNefits?

Th strctrs into which o can transr or

assts can ha lasting consqncs or o

and or amil and it is crcial that o choos

th right ons. Th right strctrs can protct

assts and gi or amil lasting bnts. To

discss how w cold hlp o, plas contact

s or rthr inormation.

04

PROTECTiOn

EStatE

PReSeRvATIONH d h h f

make provisioNs for a willIn th uk, i o dont ha a will, or stat will b

distribtd according to rls st ot b law. Ths

ar nown as th Rls o Intstac. For ampl,

in england and Wals, i or marrid with childrn,th rst 250,000 o or stat (pls an prsonal

possssions) wold pass to or spos. Th

rmaindr wold b split, hal going to or childrn

whn th rach th ag o 18 and th othr hal

sd to gnrat an incom or or spos, passing

to th childrn on or sposs dath.

I or not marrid, or stat will go to or

blood rlatis, n i o bn liing with

somon or sral dcads. This cold b ar

rom what o wish. Thin abot whr o want

or mon to go and wh. A will mas or

wishs concrt and claris who shold gt what,

bt can also b riwd or tim.

life assuraNceLi assranc can pla a big part in or stat

prsration stratg. Rathr than rdc a potntial

IHT liabilit, b taing ot a plan to cor or stats

potntial IHT liabilit and writing it in an appropriat

trst, th paot can b sd to mt an bills. Mor

importantl, b ptting it in an appropriat trst, it will

b otsid or stat so it wont orm part o or

stat and will not b liabl or IHT.

give it awayGiing or walth awa to anothr indiidal whil

o ar still ali cold also rdc or stats

posr to an IHT liabilit. Ths transrs ar

potntiall mpt rom IHT and thr is no limit on

sch transrs. This is an cllnt wa o transrring

assts that o do not nd to p in or stat.

Howr, it ma b adisabl to cor sbstantial

gits b insranc against dath within sn ars.

An gits o ma to indiidals will b mpt

rom IHT as long as o li or sn ars atr

maing th git. I o gi an asst awa at an

tim bt p an intrst in it or ampl,o gi or hos awa bt contin to li

in it rnt-r this git will not b a Potntiall

empt Transr.

I o di within sn ars and th total al

o gits o mad is lss than th IHT thrshold,

thn th al o th gits is addd to or stat

and an ta d is paid ot o th stat.

Som gits ar immdiatl otsid or stat. yocan gi as man popl as o li p to 250 ach

in an ta ar. I o want to gi largr gits, ithr

to on prson or sral, th rst 3,000 o th total

amont o gi will b mpt rom ta. yo can also

ma a rglar git as long as it is ot o or incom

and dosnt act or standard o liing. A wdding

or rgistrd ciil crmon can also b a good

cs or an IHT-mpt git. A parnt can gi p to

5,000, a grandparnt 2,500 and anon ls 1,000.

trust iN your futureutilising a trst cold b sl i o want to gi

som mon to, or ampl, or childrn or

grandchildrn bt ar concrnd th might not

spnd it wisl dring thir tnag ars. Or, i o

wantd to gi awa capital whil ping control

or how it is managd and, in som instancs, still

bing abl to rci an incom rom it.

Ta chargs can also com into pla on th mon

placd in trst; howr, gnrall, i this rmains blow

th nil-rat band, o wont nd to pa an ta, and in

man cass it is lil that th ll o ta srd will

b lss than th 40 pr cnt hadlin IHT rat. n

Thresholds, percentage rates and tax legislation may

change in subsequent Finance Acts. Levels and bases o,and relies rom, taxation are subject to change and their

value depends on the individual circumstances o the

investor. The value o your investments can go down as

well as up and you may get back less than you invested.

I o ar uk domicild,

Inhritanc Ta (IHT) is

crrntl chargd at

40 pr cnt and is paabl

on or stat onc

or nt assts cd

325,000. For som

marrid copls and

rgistrd ciil partnrs, an

nsd prcntag o th

aailabl allowanc romth stat o th rst to

pass awa ma b claimd

whn th scond spos

dis. Onc th domain o

th spr-rich, wid-scal

hom ownrship and rising

proprt als ha mant

that mor and mor popl

nd to implmnt an

stat prsration stratg

to protct thir walth.

giviNg your wealthaway to aNotheriNdividual while youare still alive couldalso reduce yourestates exposure toaN iht liaBility.


5/1205

RETiREMEnT

building neW untouchedpension savingsa x-f

Drawdown is th main altrnati to a scr annit incom. It is mor

fibl than an annit bt is also mor compl and highr ris. Figrs

rom Sandia (08 Jl 2013) show onl on third (35 pr cnt) o popl in

drawdown ar actall taing thir ll incom allowanc.

T

his mans two thirds (65 pr cnt)

o popl with mon prchas

pnsion saings ha th

opportnit to potntiall improthir ta-cinc, and hnc

thir orall long-trm walth. This can b

achid b opting to s som or all o

thir aailabl pnsion incom to bild nw

ntochd pnsion saings.

qualify for tax reliefIndiidals ndr 75 can crrntl achi ta

rli on contribtions into a pnsion o p to

3,600 ach ar, n i th ar not woring.

I somon is woring th will qali or ta

rli on rthr contribtions, sbjct to th

annal contribtion allowanc and th ll o

thir arnings.

New peNsioN saviNgsusing th pnsion incom to inst into nw

pnsion saings can ha man bnts and

no ral downsid. Th incom ta paid whnmon is tan rom th isting pnsion is

ost b th ta rli rcid whn it is

instd as nw pnsion saings.

future retiremeNt iNcomeutilising nsd drawdown incom in this

wa, th nw pnsion nd is not dmd

to b in drawdown and is not sbjct to th

55 pr cnt ta liabilit on lmp sms paid

to bnciaris on dath bor ag 75. Th

nwl cratd pnsion nd will proid a

rthr 25 pr cnt ta-r lmp sm as part

o thir tr rtirmnt incom (proidd th

saings ar within th Litim Allowanc).

tax-free sumFor thos in drawdown who ha tan thir

ta-r lmp sm bt ar not sing all o

thir aailabl incom to impro th ta-

cinc o thos saings with no ral cost

to thmsls, not onl dos this planning

rdc th potntial ta liabilit or thir

bnciaris on an aailabl lmp sm i th

di bor 75, it will also bild anothr 25 prcnt ta-r lmp sm, hlping to proid

gratr incom in th longr trm. This is good

nws or appropriat pnsionrs who ma

not b taing th maimm incom allowanc

ach ar to bild a mor cti rtirmnt

incom stratg. n

Drawdown is a complex product. I you are

at all uncertain about its suitability or your

circumstances, you should seek proessional

nancial advice. Your income is not secure. You

control and must review where your pension is

invested, and how much income you draw. Poor

investment perormance and excessive income

withdrawals could deplete the und.

By utilisiNg uNuseddrawdowN iNcome iN this

way, the New peNsioNfuNd is Not deemed to BeiN drawdowN aNd is NotsuBject to the 55 per ceNt tax

liaBility oN lump sums paidto BeNeficiaries oN deathBefore age 75.

waNt to coNsider yourdrawdowN optioNs?

To discor i drawdown cold orm part

o or rtirmnt incom stratg, plas

contact s to discss or rqirmnts.


6/1206

invESTMEnT

surviviNginvestment

volatilityr h h- djSom instors ma ha had a rollr-coastr rid in rcnt

ars. A mart all can happn at an tim. In ars past,

th bn triggrd b natral disastrs, oil pric spis,

wars, ban collapss and now thrs th rozon dbtcrisis. Th ralit is that mart swings happn otn, and

whn th do, it can b nsttling or man instors.


7/1207

invESTMEnT

nothing ignits th ar o losing

ons hard-arnd mon li ashort-trm mart corrction.

A natral raction to that ar

might b to rdc or liminat

an posr to th stocs, thining it will

stm rthr losss and calm or ars.

Bt disciplind instors tpicall do jst th

opposit: th tr to maintain an appropriat,

dirsid mi o instmnts and rsist th

tmptation to ma short-trm adjstmnts.

Th simpl trth is that olatilit is a act o

insting li and or otn bttr srd

staing in th marts or th long trm than

plling ot. Hrs wh, and how, o can do it.

toleraNce for riskundrstandabl, som instors ma

orract to short-trm mart olatilit

that isnt sall rlant to thir long-trm

goals. yor tim horizon, goals and tolranc

or ris ar actors in hlping to nsr

o ha an instmnt stratg that wors

or o. yor tim horizon is th nmbr o

ars ntil o will bgin to s what o

instd. yor tolranc or ris shold ta

into accont or broadr nancial sitation

sch as or saings, incom and dbt and

how o l abot it all. Looing at th whol

pictr can hlp o dtrmin whthr or

stratg shold b aggrssi, consrati

or somwhr in btwn.

set realistic expectatioNsI o ar nros whn th mart gos down,

o ma not b in th right instmnts. en

i or tim horizon is long nogh to warrant

a mor aggrssi portolio, o ha to b

comortabl with th short-trm ps and downsoll ncontr. I watching or balancs

fctat is too nr-racing or o, thin

abot r-alating or instmnt mi to

nd on that ls right. Bt b war o bing

too consrati, spciall i o ha a longtim ntil o nd th mon. St ralistic

pctations, too. That wa it ma b asir to

stic with or long-trm instmnt stratg.

extreme market volatilityTh to long-trm instmnt sccss is

haing a balanc to or instmnts. Haing

all o or mon instd in on asst

class can b a r high ris approach. On

o th most important things o can do to

hlp protct or portolio rom olatilit and

down marts is to dirsi. Whil it wont

garant that o wont ha losss, it can

hlp limit thm. It was pt to th tst dring

th trm mart olatilit dring th global

crdit crisis in 2008.

core asset classesSo how do o dirsi? First, considr

sprading or instmnts among at last th

thr cor asst classs: stocs, bonds and

short-trm instmnts. yo ma also want to

incld othr assts that ar not alwas closl

corrlatd with th cor asst classs. Thn,

to hlp ost ris n mor, dirsi th

instmnts within ach asst class. Chc

whr or nds ar instd and sprad

holdings or dirnt sctors and gographical

aras. Riw th balanc o or assts: ar

o posd to too mch or too littl ris?

yo shold also chc to s i nw asst

allocations match or ris prol.

smooth out riskAttmpting to mo in and ot o th

mart can b costl, particlarl bcas a

signicant portion o th marts gains ortim ha tndd to com in concntratd

priods. Man o th bst priods to inst

in stocs ha bn thos nironmnts that

wr among th most nnring. Drip-ding

mon into instmnts at rglar intralscan allow instors to smooth ot ris

throgh pond-cost araging. This rqirs

o to inst in all conditions, thrb hlping

to aoid th poor dcisions that som popl

ma ma whn tring to scond-gss th

mart. Whn th mart alls, or pamnt

will b mor shars or nits in a nd so

oll ha a biggr holding at th point

marts rcor.

the right mixLoo at th tp o instmnt nds o hold

and ma sr th ar bst placd to gi

o som protction i marts all, bt also to

bnt whn th ris. Good qalit d-

intrst nds ar lil to b rlatil stabl,

whras qit nds can b mor olatil, so

i appropriat to or particlar sitation, o

cold considr holding a combination in th

right mi or o. n

Past perormance is not necessarily a guide to

the uture. The value o investments and the income

rom them can all as well as rise as a result o marketand currency fuctuations and you may not get back

the amount originally invested. Tax assumptions are

subject to statutory change and the value o tax relie

(i any) will depend upon your individual circumstances.

helpiNg you grow yourwealth is aN importaNt

part of what we doThr ar man dirnt was to grow

or walth. Or sill is in hlping o to

ndrstand or choics, and thn hlping

o to ma th instmnt dcisions that

ar right or o. That dpnds on or li

prioritis, or goals and or attitd to

ris. To discss how w cold hlp o,

plas contact s or mor inormation.

uNderstaNdaBly, some iNvestors

may overreact to short-term marketvolatility that isNt usually relevaNtto their loNg-term goals. your timehorizoN, goals aNd toleraNce forrisk are key factors iN helpiNg toeNsure you have aN iNvestmeNtstrategy that works for you.


8/1208

PROTECTiOn

real Help wHen

you need it mosta df hh d h

Th diagnosis o a srios illnss can

man a r diclt tim or or

halth and or walth. Bt critical

illnss cor can proid ital nancial

scrit whn o nd it most. Most

hombrs prchas li assranc

whn th arrang a mortgag, bt

orloo critical illnss cor, anothr

orm o nancial protction that w ar

statisticall mor lil to nd bor

raching rtirmnt.

somethiNg criticalCritical illnss assranc pas a ta-r

lmp sm on diagnosis o an on o a list o

spcid srios illnsss, inclding cancr and

hart attacs. Th good nws is that mdical

adancs man mor popl than r arsriing li-thratning conditions that might

ha illd arlir gnrations. Critical illnss

cor can proid cash to allow o to prs

a lss strssl listl whil o rcor rom

illnss, or o can s it or an othr prpos.

core specified coNditioNsAll policis shold cor sn cor spcid

conditions. Ths ar cancr, coronar artr

bpass, hart attac, idn ailr, major

organ transplant, mltipl sclrosis and

stro. Th will also pa ot i a policholdr

bcoms prmanntl disabld as a rslt o

injr or illnss.

Bt not all conditions ar ncssaril

cord. Th Association o British Insrrs

(ABI) introdcd a st o bst practic

gidlins. In Ma 2003, th ABI introdcd

othr masrs. Ths incldd conditions

sch as non-inasi sin cancrs and lss

adancd cass o prostat cancr. Tmors

that ha not t inadd th organ or tiss,

and lmphoma or kaposis sarcoma in th

prsnc o HIv ar cldd.

Thr ar also mor rstricti conditions

or hart attacs. Thr has to b idnc

o tpical chst pain, or changs in th

lctrocardiogram (eCG), or ampl, i a

claim is to b sccssl. Cardiac conditions,

sch as angina, will not b cord.

gettiNg it coveredWhil li assranc is otn th priorit

o thos with dpndant amil mmbrs,

critical illnss cor can b ital i o ar th

sol bradwinnr, rl hail on or incom

or ar singl. It proids a wlcom nancial

boost at a tim o motional strss and

nancial hardship.

Bor o ta ot critical illnss cor,

o nd to obtain prossional nancial

adic to ma sr that it is right or o and

ors scint cor. ncritical illNessassuraNce pays atax-free lump sum oNdiagNosis of aNy oNeof a list of specifiedserious illNesses,iNcludiNg caNcer aNdheart attacks.

do you have peaceof miNd should theworst happeN?

No on r lis to thin abot gtting ill,

bt how wold o and or amil cop

i o bcam too ill to wor? To tal to s

abot or concrns, plas contact s

w loo orward to haring rom o.


9/1209

WEalTh PROTECTiOn

l d d

Thr ar complling nancial and motional rasons or maing

a will. Bt wh do so man o s sh awa rom it?

Whn it coms to important

dcisions particlarl nancial

ons w tnd to pt thm o,

or ma css: thrs plnt

o tim or its too big a job.

Non o s lis to thin abot ding, bt

what happns i o pt o maing or

will? At th r worst, th stat cold p

rthing o own lod ons gt nothing.

Whn o ma a will, rthing or which

o ha word so hard (inclding or hom)

is protctd; all or hard-arnd assts will go

to actl th popl o want to ha thm. An

p-to-dat will, thror, complts th circl o

all th nancial planning o ndrtan.

my family situatioN iscomplicated, i doNt kNowwhere to start

This is a common problm, bt a compl

amil sitation shold b an incnti to ma

a will. I or not marrid bt liing with

somon, or assts will atomaticall go to

blood rlatis not or partnr in th nto or dath.

Th intstac rls dtrmin who will

bnt rom or stat i o di withot

maing a alid will. I o ar sparatd bt

not diorcd, or spos will still inhrit

rgardlss o or intntions. In england and

Wals th wold b ntitld to or prsonal

possssions, th rst 250,000 o or

stat and wold ha a li intrst in hal o

anthing atr that. Childrn wold inhrit onl

i th stat is worth mor than 250,000 and

an nw nmarrid partnr wold gt nothing.

I o ha no will, two things ollow. Firstl,

its mch hardr or or griing rlatis to

gt control o or assts; scondl, rigid rls

stp in to ll th oid and dcr who gts

what. A painl, practical consqnc o that is

sall a highr ta bill. unmarrid partnrs ar

th biggst losrs.

i doNt Need a will, i owNeverythiNg joiNtly withmy spouse/registeredcivil partNerIts somtims tr that proprt and instmnts

wold go to or spos or rgistrd ciil

partnr, bt what abot an prsonal possssions

that o might wish to pass on?A will also gos rthr than jst daling with

proprt. It allows o to appoint ctors

to dal with paprwor, organis nral

arrangmnts and gi to charit.

my circumstaNcesare chaNgiNgyo shold sall riw or will at last

r ars and atr an major li

chang sch as gtting sparatd, marrid

or diorcd, haing a child, or moing hos.

It is bst to dal with an major changs bgtting a nw will drawn p. Bt it is also

possibl to ma minor changs (codicils) to

or isting will.

Wills can b writtn to catr or things that

ar abot to happn in contmplation o

marriag, or ampl, or to gi rthing

to childrn who sri o.

Onc o ha tan a dp brath and

thos rst w stps in maing a will, o

can ris it as otn as o wish. Th hard

wor has bn don. And it is ital to riw

or will as o gt oldr in an cas. yor

potntial Inhritanc Ta liabilit ma chang

as o accmlat mor assts or simpl as

th al o or hos gos p.

im too youNg to make a willWills ar not jst or th ldrl. I o ha

assts, and particlarl i o ha childrn

ndr ightn, o shold s or will to

dictat to whom thos assts go and who

shold loo atr or childrn i o, and

anon ls with parntal rsponsibilit,

di. Its a sad act that accidnts and illnss

can happn, and whil w cant control

at, w can control or nancs. n

While we have made every eort to

provide accurate inormation, the law is alwayschanging and aects each person dierently.

This inormation is no substitute or specic

proessional advice about you personally and we

will not be liable to you i you rely on

this inormation.

we cant control ate but we

can control our inances

Need help?

Th npctd cold happn at an

tim, so it is ssntial that o obtain

prossional adic. Dont hsitat to gt

in toch to discss or rqirmnts.


10/12

Bandof goldare you beneiting inanciallyrom your marital status?Ting th not dos bring nancial adantags. Ta and pnsions ar

probabl th last romantic rasons or gtting marrid, bt thr ar anmbr o was to bnt rom or marital stats.

10

WEalTh prOTECTION

if you are a higher-ratetaxpayer aNd your spouse

or registered civil partNeris a lower-rate or NoN-taxpayer, you have theoptioN to traNsfer the

BoNd, or segmeNts of theBoNd, to them.


11/1211

WEalTh prOTECTION

althogh o can contribt whatr o

wish into prsonal pnsions, o can

onl rci ta rli on contribtions p

to th amont o arn ach ar, and

sbjct to a maimm annal allowanc

o 50,000 (or th 2013/14 ta ar).

An contribtions cding th allowanc will b

tad. I o want to contribt mor than th annal

allowanc in a ta ar, its worth considring splitting

contribtions btwn or pnsion and that o or

spos or rgistrd ciil partnr.For ampl, i o wantd to contribt 60,000 and

rci ta rli on th whol amont, o cold pt

50,000 into or pnsion and 10,000 into or sposs,

with both staing within th annal allowanc limit. This

is dpndnt on or partnrs arnings bing highr than

th amont o ha paid in. en i or partnr has no

incom th can rci ta rli on contribtions p

to 3,600 gross ach ar. Also, rmmbr that i or

spos is a basic-rat tapar, th will onl rci ta

rli at 20 pr cnt on th contribtion.

iNvest iN iNdividual saviNgsaccouNts (isa)en i o arn a r sbstantial incom, ISAs shold

not b ignord, sinc incom rom thm is ta-cint

and o do not incr capital gains ta whn o cash

thm in. This is spciall tr or copls, who ach

ha thir own allowanc. This mans that, btwn

o, o cold potntiall inst p to 23,040 into

Stocs & Shars ISAs, or split it p and inst p to

hal o that into Cash ISAs. Insting th maimm

ar-on-ar or, sa, a 20-ar priod wold crat a

considrabl ta-r sm.

On problm with ISAs or highr arnrs is that

th cant b gitd and th cant b mad sbjct to

a trst. That mans th rmain in th instors stat

or Inhritanc Ta (IHT) prposs. Th answr might

b to contin sing ISAs, and s som o th incom

to nd an appropriat li polic that can b hld in an

appropriat trst to cor th IHT liabilit. Altrnatil,

o cold spnd th ISA nds at rtirmnt bor

bing an annit or stablishing drawdown o pnsion

bnts, as ths ar mor IHT-cint p to ag

75 shold o di.

traNsfer your oNshore

BoNd Before surreNderInstmnt bonds proid a ta-cint wa o holding a

rang o instmnt nds in on plac and aim to proid

long-trm capital growth. Incom rom instmnt bonds

is dmd b HM Rn & Cstoms to b nt o basic-

rat ta, althogh additional ta ma b paabl whn th

bond is ncashd, in part or ll.

I o ar a highr-rat tapar and or spos or

rgistrd ciil partnr is a lowr-rat or non-tapar,

o ha th option to transr th bond, or sgmnts

o th bond, to thm. This mans an tr chargabl

nt on ncashmnt is assssd on or partnr,

rdcing th potntial incom ta liabilit on an gain

ralisd. This is a compl ara and o shold obtain

prossional nancial adic rst.

share your assets to reducecapital gaiNs tax (cgt) aNdiNheritaNce tax (iht)CGT is paabl whn o sll or transr an asst, bt

transrs btwn sposs or ciil partnrs ar mpt.

Th CGT allowanc lts o ma a crtain amont o

gains ach ar bor o pa ta. For th 2013/14 ta

ar, th allowanc is 10,900. Howr, this allowanc

is pr indiidal. So, b sprading assts sch as or

instmnt portolio btwn o and or spos or

ciil partnr, o ar ctil dobling th allowanc

to 21,800 bor o pa CGT.

Whats mor, th rat o CGT o pa is basd on

or incom ta stats, with basic-rat tapars paing

18 pr cnt and highr-rat tapars paing 28 pr

cnt. So, holding assts in th nam o th indiidal

paing th lowr rat o ta mas sns. In th sam

wa, transrs o assts btwn sposs and ciil

partnrs ar also mpt rom IHT.

An nsd IHT nil rat band th amont o or

stat that is not sbjct to IHT (crrntl 325,000)

can b sd b th sriing partnrs ctors on

thir sbsqnt dath. n

Thresholds, percentage rates and tax legislation may change

in subsequent Finance Acts. Levels and bases o, and relies

rom, taxation are subject to change and their value depends on

the individual circumstances o the investor. The value o your

investments can go down as well as up and you may get back less

than you invested.

time to talk aBout your optioNs?

W all want th tr tan car o, which is wh

w combin gnin insight into or nds and

circmstancs with a comprhnsi ndrstanding

o th dirnt hicls aailabl. To nd ot mor,

plas contact s.


12/12

Pblishd b g m l,

B i t I ti C t 110 B tt ld G t M li L t B d d hi Lu2 8DL

INvESTmENT

time to

aim orHigHerreturnst d h h

arond two ths (41 pr cnt) o uk adlts ar

crrntl insting in Cash ISAs. Howr,

lss than on in tn (9 pr cnt) ar insting

in Stocs & Shars ISAs, dspit low intrst

rats maning that n ta-cint Cash ISAs cold

b strggling to p pac with infation.

reviewiNg your approachWith th Montar Polic Committ (MPC) contining

to p intrst rats low and infation rlatil high,

cash hld in an ISA or a saings accont cold b

rodd in ral trms. So now might b worth riwing

or approach and, i appropriat, considring whthr

o cold ta mor r is with som o or cash. yo

cold potntiall inst in th stoc mart instad,

throgh a ta-cint Stocs & Shars ISA, to tr to

bat infation. Howr, its alwas snsibl to p

som mon in cash, whr it is sa and o can gt

instant accss to it.

coNsider your optioNsFor thos indiidals willing to ta mor ris with

a proportion o thir mon, thr is th option to

considr sing as mch o th crrnt annal

11,520 (2013/14) Stocs & Shars ISA allowanc as

th can this ta ar. Th annal ISA allowanc is

pr indiidal. This mans that a hsband and wi, or

rgistrd ciil partnrship, or ampl, can inst p

to 23,040 btwn thm into ISAs this ta ar.

Th rsarch rom Standard Li (08 April 2013)

also rals mn and womn ta a r dirnt

approach to thir instmnts. Or on in tn

(12 pr cnt) mn crrntl sa into a Stocs &

Shars ISA, compard to onl jst or on in twnt

(6 pr cnt) womn. An qal prcntag o mn andwomn ar crrntl saing into Cash ISAs (41 pr

cnt or both).

isa mattersus as mch o or crrnt 11,520 (2013/14) ISA

allowanc as possibl in this ta ar. yo can inst this

ll amont in a Stocs & Shars ISA so o ha th

chanc o gratr ta-cint growth or th longr

trm. Insting rglarl ach month can hlp to smooth

ot an short-trm ps and downs in th stoc mart.

Riw or Stocs & Shars ISA instmnt rglarl

to ma sr it is prorming as pctd. Rinst to hlp

gnrat mor incom. Rmmbr that i o choos an

ISA that gnrats incom, o can rinst this mon as

wll as paing it into a ban accont. This mans o ha

th opportnit to contin to gnrat incom basd on

or long-trm instmnts. n

Source: All gures, unless otherwise stated, are rom

YouGov Plc. Total sample size was 2,059 adults. Fieldwork

was undertaken between 25-28 January 2013. The survey

was carried out online. The gures have been weighted

and are representative o all UK adults (aged 18+).

Past perormance is not necessarily a guide to the

uture. The value o investments and the income rom

them can all as well as rise as a result o market and

currency fuctuations and you may not get back the

amount originally invested. Tax assumptions are subjectto statutory change and the value o tax relie (i any)

will depend upon your individual circumstances.

Whn it coms to

taing instmnt ris

to scr a highr

rtrn, thos agd

55 and or ar most

lil to b taing

th lad with Stocs

& Shars Indiidal

Saings Acconts

(ISAs), according to

rsarch rom Standard

Li (08 April 2013).

Or on in tn (11 pr

cnt) o 55 and ors

inst in th stoc

mart ia thir ISA,

compard to jst

7 pr cnt o 35 to

44-ar-olds.

iNterested iN isas?

No mattr what or instmnt goals

ar, w can wor with o to dlop th

bst portolios or or rqirmnts. How

can w hlp o? Plas contact s or

rthr inormation.

mra money september october 2013

Documents