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NEWSLETTER Summer 2016

Woking Office: Suite 2, Third Floor, One Crown Square,

Woking, GU21 6HR.

Tel: 01483 330800

The spring has been dominated by the lead-up to the ‘In/Out’ EU Referendum, with both sides eagerly sharing their views. Each camp has their reasons for subscribing to their outlook and it has been interesting to note the variance in views between large and small businesses and individuals alike.

With the new tax year in full swing, it has been a very busy start to 2016, with much change being introduced in this new tax year. We continue to build on the service and documentation we provide to our clients and have taken the opportunity of attaching our latest, and updated, Investment Risk Scale, to help with your financial planning and views on investment going forward. 2016 has seen investment volatility, as we noted in our spring newsletter, and we may see further volatility over the balance of 2016 with the US Presidential Election ahead. Chapters Financial works as a team on financial planning work for our clients and please do contact me, Esther Dadswell or Vicky Fulcher at our offices if you have any questions on your planning or are just looking for an update.

It has been a busy period for me, with appearances on various local and national radio programmes over the first half of 2016, including some financial thoughts on LBC Radio, as well as my continued regular money appearances on BBC Surrey and Sussex.

I was also delighted to be invited to join Paul Lewis in a special BBC Radio Four programme, Money Box Live: Pension Freedoms One Year On, on Wednesday 6 April as part of a panel of guests who answered questions from callers on the shake-up of pension regulations introduced in April 2015. A range of excellent points was raised by listeners, which highlighted the complexities surrounding this topic.

We are also proud to note that Chapters Financial has been shortlisted in the forthcoming Investment Management IMAIA 2016 awards for Corporate Social Responsibility and this is in part down to our continued commitment to The Planet Mark programme, to which we have subscribed for many years now.

We hope that the content of this new summer newsletter helps with your future financial planning and that you enjoy the spectacle of many major sporting events over the period.

Welcome

Keith Churchouse

Guildford (Registered Office):

Hadleigh House, 232 High Street,

Guildford, GU1 3JF.

Tel: 01483 578800Fax: 01483 578864

Chapters Financial Offices

Europe Referendum….it’s all over!Now it’s all over we can move forward, but will it make a difference? Simplistically, there may be some short term volatility in the value of sterling and as we approach the holiday season that may make a difference to the amount that can be received when exchanging pounds for Euros and dollars, as examples. Time will tell how investment and trade markets will react to the result and the implications of this in the medium to longer term.

There are other important votes due in 2016, in particular the US Election, which may have greater focus for investment markets as we draw towards the end of 2016. It is also of note that at the time of writing, oil prices have risen to over $50 a barrel. Not good news at the petrol pumps, but possibly better news for investment markets into the medium term. Keeping your financial planning under review over 2016 and beyond will be well worthwhile as political processes change the economic geography into the future.

Staff Spotlight: Lorraine BurrLorraine joined Chapters Financial Limited in May 2016 as Office Manager based in Guildford, following a previous career in Financial Services and more recently in a Management Consultancy for the last fifteen years.

With a wealth of experience in all aspects of business, Lorraine is looking forward to contributing to the growth and continued success of Chapters Financial. She welcomes the challenges ahead and to meeting and working with both new and existing clients. Outside of the office, Lorraine enjoys holidays with her family, cake decorating when time allows and looking after her pet chameleon!!

HMRC Lifetime Allowance / Pensions Pensions have been highly topical, particularly for those who have saved larger amounts over time…and for those who want to continue to save, taking into account new tax efficient allowances, such as the HMRC Lifetime Allowance of £1.0M.

We are expecting the HMRC systems to be updated shortly to allow applications for HMRC Lifetime Allowance protection (Fixed or Individual Protection 2016) where appropriate.

Pensions Auto-Enrolment / 2016 is the year for many SMEs

Many SME companies are starting to prepare for their Staging Date to meet the statutory obligation to provide a workplace pension for their employees. Many of these employer Staging Dates will occur over the course of 2016 and 2017 and cannot be ignored. Choosing an appropriate scheme can be a complex area and depends on a number of factors, including the size of the company and the expected level of contributions from employer and employee. In addition, we are finding that some existing pension schemes do not qualify or are difficult to confirm as compliant.

Chapters Financial can provide advice, assistance and support throughout the auto-enrolment pension process, from assessing an appropriate level of benefits to provide to staff, selecting an appropriate scheme, managing the ongoing administration once the new arrangement is in place and ensuring that the scheme is registered correctly with The Pensions Regulator.

It is prudent to start the auto-enrolment planning process well in advance of the Staging Date, as a substantial amount of data on both the company and its individual staff members will be required by the pension provider. It is important to note that the fines imposed by The Pensions Regulator for non-compliance can be significant.

Get your Financial Planning in Shape for the summer!We have always been an advocate of a regular review of individuals’ financial planning. An annual review (as a minimum) is worthwhile to check that the plans that you have in place still meet your changing needs and requirements. 2016 has seen many changes in legislation and allowances and these alone may take some focus to ensure that tax efficient value is being extracted where prudent and available.

We are asked frequently if various types of financial paperwork from years gone by can be destroyed and many will know that we are reluctant to sanction this without checking what is involved. Obviously, if anything is to be destroyed, it should be shredded carefully and thoroughly.

Holding on to original policy documents is important and checking that these policies still meet your needs is also worthwhile. Many older type policies, such as Critical Illness plans, sometimes have protection definitions that are usually more favourable than newer style plans and this could increase their real value in the event of a claim.

Along with policies and investments, it is also worth looking at other important documents, such as existing Wills and Powers of Attorney to ensure they reflect your – and your loved ones’ – current circumstances. An example might be a Will which does not feature grandchildren who are now on the scene.

Many will soon be receiving a notification from HMRC that it’s time to start gathering together tax certificates for bank/deposit interest and investment income in order to prepare tax returns. You may want to check with your accountant about what is needed.

This is also a great time of year to review all of your arrangements and the team at Chapters Financial can help you with a review of your financial planning as we move into the summer of 2016. Please contact the team at either our Guildford or Woking offices.

Big Income, Big Pension Changes! - Will your pension contributions be restricted?

Important changes came into force at the start of the new tax year which mean that higher earners (£150,000 pa +) could see their annual pension contribution allowance reduced significantly. Are you one of them and, if so, what do you need to do about it?

Additional rate personal pension tax relief is granted for earnings above £150,000. However, if you have higher adjusted income (this includes net income for the tax year (e.g. earnings) and the value of any pension contributions or pension input during the tax year) above £150,000 gross, the pension contribution limit of £40,000 gross from all sources will be reduced in 2016/2017 on a pro-rata basis. If you receive adjusted income in excess of £210,000 gross in the new tax year, your new pension contribution limit will be restricted to £10,000 gross from all sources.

With this noted, you may wish to review your existing employer/employee pension contribution levels to ensure that they meet with your requirements and this new tax rule change. Those who have variable incomes (such as the self-employed & directors) may well want to plan their contribution schedules early with the aim of avoiding additional future tax charges.

Those people drawing income from uncapped pension plans can also find their pension contribution levels being restricted to £10,000 per annum from all sources.

If you would like to review your pension and retirement planning arrangements further in the light of these changes then please contact the Chapters Financial team at either our Guildford or Woking offices.

Please contact us on

01483 578800 (Guildford) 01483 330800 (Woking)

or by email at

info@chaptersfinancial.com to discuss your requirements and to book

a meeting or financial planning review.

Summary & Review As always, the team at Chapters Financial are here to help you and work with you in providing independent financial advice. Reviewing your finances and existing arrangements regularly is recommended. We also hope that the newly updated Investment Risk Scale is useful.

This Newsletter provides general information and should not be used as individual advice.

If you would like to receive this information in email format please let us know.

Chapters Financial Limited is authorised and regulated by the Financial Conduct AuthorityRegistration number: 402899