In these uncertain times it is fair to assume all business will be affected in one way or another. As a family run business we may be able to share what we are doing to weather the storm and help you with your business moving forwards. Don't...
Financial
We remain open for business. However, like everyone else, we are taking account of the health and safety of our clients and of the SWLaw team. The aim is to make necessary changes in practice but to keep them as seamless as possible. We are...
Life Insurance Isn’t Just an Extra Cost My personal exposure to Life Insurance, before becoming an Independent Financial Adviser (IFA), was to watch implausible stories played out during the TV adverts… you know, wooden actor attempts to look...
Equity Release Are you over 55 and looking for additional income in retirement or perhaps looking to make home improvements or take your dream holiday? A simple option may be to unlock the value in your home by way of Lifetime Mortgage, aka Equity Release....
Retirement Planning Can Wait… ? A pension is for retirement and possibly of little interest right now, when you’re burdened with the everyday financial pressures of mortgage repayments, utility bills, escalating council tax and settling the tab...
Remortgaging… A known problem or inconvenience is approaching – the in-laws perhaps -, you consider, is the problem avoidable? Can I ignore it, ostrich style? Or do I meet it head on? This internal battle plays-out throughout...
As soon as investment and taxation are muttered in the same sentence, people jump psychologically to exotic sun-drenched islands and morally questionable individuals. There’s been press coverage of numerous high-profile cases, *ahem* Jimmy Carr, in...
A little known and for that reason hugely underused benefit of an EIS is that you can not only defer a gain that has already occurred, up to three years in the past and claim back the tax already paid but you can also use an EIS investment to...
The potential issue with investment bonds, whether on or offshore is that upon death Income Tax is payable on the profits made. If the bond is sold during the holder’s lifetime, any Income Tax charge payable on those profits can be offset using a tax...
Lazy Cash? The prospect of surplus cash is one that seems to have nothing but plus points, if an excess of bad debt is essentially bad it follows that an excess of cash is good but what if that money is in a company doing nothing? Surplus cash is...
Many business owners restrict their remuneration to avoid higher rates of tax. Consequently, cash builds up within the company. They could be missing an opportunity to set up a tax free dividend stream for life ! An investment into a Venture Capital Trust...
Are you in the fortunate position of having a pension fund that you do not need to draw on? Would you be interested in ways of passing some of this on to your family free of inheritance tax whilst you can have the joy of seeing them benefit when...
It may be a good problem to have but … what can you do with excess cash held by a company? You may have considered increased salary and/or dividend or further pension contributions. Where do you turn when you have exhausted those...
The National Minimum Wage rates are updated each October. The National Living Wage is updated in April. New rates from 1st October 2016 are as follows. £7.20 for workers 25 and over £6.95 for workers aged 21 - 24 £5.55 18-20 yrs ...
THE LIFETIME ISA George Osbourne’s March budget unveiled the proposed Lifetime ISA (LISA) to be rolled out in April 2017. “…25% bonus contribution from the UK Government…” Much like the Help-to-Buy ISA currently on...
On the 14th October 2015, the Supreme Court made a ruling which made it clear that dishonesty in financial dealings upon divorce will not be tolerated and settlements based on dishonest information are susceptible to being set aside. Alison Sharland and...
Are you prepared for the changes to Stamp Duty Land Tax? The government is proposing an increase in the rate of stamp duty land tax (SDLT) for those who complete the purchase of a second home or additional property after 1 April 2016. The new...
In a News item earlier in the year we looked at the decision from the Court of Appeal in the case of Wright v Wright . The case highlighted a definite shift in the attitude of the courts towards long term financial dependence by one ex-spouse...
In his Spending Review and Autumn Statement, the Chancellor announced, a number of measures aimed at helping buyers to own their own homes. These included: -Government fund to enable 200,000 starter homes to be made available at a 20% discount for first...
Buy to Let has become rather less attractive as an investment after a number of measures introduced by the Chancellor in what he has described as levelling the playing field for home buyers as against buy to let investors. For wealthier landlords –...
The 2015 budget saw the launch of this initiative to help first time buyers. Savings of up to £200pm will be topped up by the government by 25% with a cap of £3000. Further information is available on the Gov.UK website : Help to Buy: ISA...
The Smoke and Carbon Monoxide Alarm (England) Regulations 2015 came into effect on 1st October. The regulations apply to existing, as well as to new, tenancies. Landlords must ensure that during any period beginning on or after 1st October 2015...
Changes to Assured Shorthold Tenancies came into force today, 1st October 2015. These have important implications for Landlords. The effect of new provisions in s 21A & 21B Housing Act 1988 is that a Landlord cannot serve a notice requiring...
The National Minimum Wage rates are updated each October. New rates come into effect today (1st October 2015) as follows. £6.70 for workers 21 and over £5.30 18-20 yrs £3.87 for 16-17 yrs, who are above school leaving age but...
From August 17th, there are changes in European succession rules – after a very long gestation period. The new regulation has implications for those ‘habitually resident’ in the UK who are now able to elect that the rules of...
The Court of Appeal made a landmark ruling* on 27 July 2015 which has significant implications for the preparation of Wills. The Will of Melita Jackson left her entire estate valued at over £485,000 to be divided equally between three charities; it...
We do from time to time meet clients who feel constrained by the unrealised gains on portfolios of property or share investments. In some cases, these are more elderly clients who are also concerned about the Inheritance Tax bill that could be facing...
Perhaps you have sold a business within the last three years. Or maybe you are going through that process now? The obvious tax consequence is the exposure to Capital Gains Tax liability on the sale. A less obvious consequence is that your potential...
You are running a successful business. Typically, you are drawing a modest salary and topping up your income by taking dividends. You may well be restricting your income in order to avoid higher rate liability. Additional funds are likely to be extracted...
Most of our clients prefer to avoid, or reduce, the IHT bill on their estates. Quite understandably, they would rather see their family benefit than the Chancellor. There are a number of ways to deal with the IHT liability. They tend to be variations on the...
If you own a business (or business property), you (or, at least, your beneficiaries) will benefit from a reduction in the Inheritance Tax (IHT) payable on your estate on your death. The sale of such assets leads to a loss of Business Property Relief (BPR)...
Investment into a Venture Capital Trust offers a number of tax incentives which could help you reduce your income tax bill. Perhaps you recognise one of these scenarios: “I would like to draw more profit out of my company but I don’t want...
Have you prepared your estate to take advantage of the upcoming changes to Inheritance Tax? The Chancellor presented the second Budget of 2015 on the 8th of July in a speech that set out new inheritance tax changes. Under the proposals, an additional...
New options for taking benefits from a defined contribution (money purchase) pension scheme came into effect from 6th April. The freedom applies to everyone from age 55. What should you consider? The first step is to think about your personal...
An important tax change should not be overlooked by the executors and beneficiaries of an estate as well as by those advising them. This provision applies to the estate of any ISA investor who died on or after 3rd December 2014. With effect from 6th April...
Affording the cost of care in later years is currently a concern for many of our aging UK population. To address these concerns, Chancellor George Osborne, announced that the cost of care for anyone of 65 will be capped at a lifetime contribution of...
Budget 2015, March 20th With the General Election a matter of weeks away, the coalition government’s 2015 Budget managed to hail economic recovery, gloss over spending cuts and serve up a raft of measures designed, among other things, to support...
Mental capacity and planning for the future If a person loses mental capacity, and they have not properly prepared Power of Attorney forms, their affairs cannot be managed without an application to the court to appoint a...
A major reform of Stamp Duty Land Tax was announced in the Autumn statement. As a result 98% of residential property buyers will see a welcome saving whilst only those paying over £937,000 will see an increase in SDLT. Each rate will be paid only on...
Pensioners Bonds were announced by the Chancellor in his Spring Budget. They will be available in January 2015, via National Savings & Investment (NS&I). It appears that the full Terms and Conditions (T&C) will not be released until January....
The Chancellor’s Autumn Statement included the announcement that Entrepreneurs’ Relief will no longer be available on a disposal of ‘the reputation and customer relationships associated with a business’ – ie the...
The proposed changes to pensions from April 2015 – Defined Benefit (DB) pensions The Chancellor has expressed his intentions to allow members of DB pension schemes more freedom of choice in their retirement benefit options, via transfer to defined...
… as the Chancellor of the Exchequer put it in commending his budget to the House yesterday. The full text of George Osborne’s speech is here. The supporting documents are available on the Gov.UK website. There is an important...
Are you one of the many business owners who restricts salary and dividend to limit exposure to higher rates of tax. Taking more profit out of the company would lead to further tax liability of at least 25%. You have probably exhausted the scope for...
...but not wanting to give up income or capital ? More and more people are being dragged into the Inheritance tax net. Property prices and investment values are rising but the Nil rate band is held at £325,000 (£650,000 for a couple). Regular...
Did you pay a heavy tax bill this year? Would you like to get some of it back? Changes in taxation have seen increasing numbers into the higher rate tax brackets. The effective rate of tax is increased further as other allowances are...
Whether or not you resolved to put your financial affairs in order in 2014, it is likely that you should review your financial plan. Here are some of the questions to ask: -Is my retirement planning on track to enable me to enjoy the sort...
Help To Buy – Phase 1 – New Build Phase 1 of the government’s Help to Buy scheme is the “Equity Loan” which is available for new build properties only. In effect it is a shared ownership mortgage. The...
Help To Buy – Phase 2 – The Mortgage Guarantee One of the biggest obstacles to owning your own home is that of raising the deposit and not everyone can rely on family to help! Things will be a bit easier from today as the second phase of...
Annuity and savings rates are low while property prices and rental yields are high. As a result, buy-to-let properties are becoming more common place as part of a retirement plan. Whilst this can be a good strategy, it is important to understand...
The Importance of Taking Independent Financial Advice at Retirement. Two recent cases illustrate the importance to taking advice at retirement. In the first case, I was approached by Mr Smith who wanted some guidance about taking the benefits from...
Farmers plan the annual cycle of production in the expectation of a harvest later. As a farmer you regularly invest time and money today for a reward in many months’ time. Yet the irony is that you may not devote much time and thought to protecting the...
Mortgage Shortfall Fears The new Financial Conduct Authority has suggested that approximately 2.6 million people will not have saved enough money by the time their interest only mortgages mature to repay them with the average shortfall being in the region...
Managing risk You are in business for a variety of reasons but first and foremost to make a profit. Without profit there is no reason to continue and no opportunity to invest, adapt and grow the business. As a business owner/manager ...
You are about to take the benefit of all those years of building up your pension savings. You have been notified how much income to expect. It seems obvious to buy the pension annuity from the pension provider holding your retirement fund. That is precisely...
SWLaw are very pleased that the ‘Make a Will’ promotion has raised over £6,000 for charity. This is a significant achievement, and we are grateful to all those clients who have generously contributed to this fundraising promotion...
The term ‘capital rich, income poor’ describes the position of many people in their later years. There is value locked up in the home but there is little income and little in the way of savings.For many people their most valuable asset is...
Changes to the State Pension. When the state pension was introduced in 1909, the maximum payment was five shillings (25p) a week – the equivalent of about £20 today and was not payable until the recipient reached age 70. There was also a...
The traditional way of taking income from a pension plan is via annuity purchase. With this route the capital sum in the pension (less any tax-free cash) is exchanged for a lifetime income. Various options can be included such as a dependents...
Child Benefit: Income Tax Charge for those on Higher Incomes The recent change to child benefit rules apply to tax payers with income exceeding £50,000 in a tax year and who are in receipt of Child Benefit, and to tax payers with income exceeding...
Today, the Office for National Statistics (ONS) announced its decision not to proceed with its recent proposal to recommend an “improvement” in the calculation of the Retail Prices Index (RPI). The RPI uses a number of formulae, one of which is...
With 2012 now behind us it is time to look forward to the end of the next year – 5 th April 2013. For many this signals the rush to make use of unused tax allowances before they are lost. With that in mind I thought it time to...
Taking with one hand … When it came to personal investments in his Autumn Statement on 5 December, Chancellor George Osborne gave with one hand and took away with the other. He extended the Isa allowance for the 2013/14 tax year to £11,520...
… can they help beat inflation ? The BBC has published on its website an interesting article by Nick Sketch in which he considers the comparative returns from savings in cash deposits and those from investment in stockmarkets. It gives a simple...
(A light-hearted look at Wills, Lasting Powers of Attorney and matters financial) As a firm we are passionate about helping people to understand the usefulness of these vitally important documents. We recently gave a presentation to a large and...
by Nigel Stannard The Department of Energy and Climate Change has recently issued the Green Deal Code of Practice and the legal framework came into force on the 1st October 2012. This means that Green Deal providers, assessors and installers can now...
Relevant Life Assurance As an owner or director of a Limited company there are now additional benefits available that could save up to 50% of the cost of providing life cover for both yourself as Director and to your employees. The true cost of providing...
Purchasing an annuity with your pension plan could cost you more after 21 st December 2012. If you are thinking about purchasing an annuity with your pension fund in the near future, changes that come into effect on 21 st December 2012 could...
The costs of care are often a cause of great worry for those in their later years. In many cases, residents are wrongly assessed to pay contributions when they ought to be receiving free care. The NHS is responsible for the fees where the primary reason a...
The Individual Savings Account (ISA) allowance for the 2012-13 tax year is £11,280 and can be taken up now. Up to half of the total (£5640) can be put into a cash ISA. Up to £3600 can be paid into a Junior ISA. The cash ISA gives...
HM TREASURY : The Government is committed to creating a sustainable tax system that is fair and supports growth. It will bring forward plans to reward work and support families; reduce headline tax rates to increase the competitiveness of the UK tax...
The Retail Distribution Review (‘RDR’) is going to have a big impact on the market for financial advice. At SWLaw we welcome it and the opportunities that come with it. It is something of a ‘coming of age’ for financial planners and...
Which? Reports (again) that high street banks and building societies are giving poor advice and recommending inappropriate investment products to elderly and potentially vulnerable consumers. An undercover investigation showed that only 5 out of 37 advisers...
David Gauke, Exchequer secretary, has set out “the Government’s vision for a more transparent, open, and easier to understand personal tax system”. The pithily-titled discussion document “Modernising the administration of the...
The Eurozone is in no position to support Italy as it struggles to deal with its debt mountain. The European Central Bank has been buying up Italian bonds in an effort to stabilise the market but, as was once famously said “you can’t buck the...
In some cases, the legal costs of taking a matter to court are covered under the terms of a policy of insurance eg: household, commercial, motor, travel, landlord’s property etc. The cover is taken out before the incident giving rise to the claim...
Agricultural Property Relief is valuable to farmers in reducing the impact of Inheritance Tax (IHT) on their estates. The farmhouse, or other living accommodation, often gives rise to difficulties. In a recent case before the Upper Tribunal (Tax &...
It is being widely reported that consideration is being given to the controversial step of forcing pensionsers to remortgage their homes to pay for personal care. The Dilnot Commission reported in July this year – see news item on ‘Long...
Berlusconi denies that he is intending to resign. Nevertheless markets reacted positively to the speculation that he may be forced to step down. A vote tomorrow on the public finances may leave the centre right coalition facing early elections. After...
Papandreou’s call for a referendum on the bailout shocked and angered other Eurozone leaders as it brought uncertainty back to markets as the prospect of what has been termed a ‘disorderly default’ loomed. It was perhaps understandable,...
Update: The risk of a Greek referendum on the bailout plans has receded during the course of the day and markets have reacted positively with the FTSE 100 finishing up over 1% and major European markets advancing by almost 3%. Papandreou has warned the Greek...
Feed-in tariffs (otherwise “The Clean Energy Cashback Scheme”) for electricity generated from solar PV installations are under review. The Department of Energy and Climate change has launched a consultation on the first phase of the...
“No win, no fee” offers access to the courts for those who might otherwise be unable to afford the costs of pursuing a claim. When Legal Aid was (for most types of claim) withdrawn, it was important to find other ways to fund court action. The...
We may be forgiven for wondering whether the Greek capacity for self-destruction knows any bounds. The terms of a bailout for the highly indebted economy were agreed last week by Eurozone leaders. The Greek PM, George Papandreou, has now announced that the...
Princess Yachts is one of a number of businesses in the region to have received support from the Government’s Regional Growth Fund. It plans to create a new boat building facility in the Devonport Dockyard’s South Yard. The site will be used to...
The Junior ISA will be launched tomorrow, 1st November. Parents of eligible children will be able to open and manage the Junior ISA which will be held in the child’s name. Children who were eligible for a Child Trust Fund – those born between...
… For the time being … but in the high dependency unit! European leaders have agreed a basis to ‘resolve’ the crisis posed by the high levels of debt in Greece. Under the deal, Greek debt would drop from 160% of its GDP to 120% by...
The BBC reports today on a survey by HSBC showing that two-thirds of UK parents do not have a Will. Dying without have made a Will (‘intestate’) brings into effect a ‘Statutory will’ – the devolution of your estate...
By a majority of 4 to 1 (Lord Mance dissenting) the Supreme Court dismissed appeals by (1) Davies and James and (2) Gaines-Cooper against earlier decisions of the Court of Appeal. The ruling puts into question the tax status of expatriates. It can no longer...
Jack Sutton suffered a severe injury to his knee during a training session at Syston Rugby Football Club. The County Court judge awarded him damages of £54,000. The award was overturned by a unanimous Court of Appeal in a judgment handed down on 20th...
According to one world population clock the global population will hit 7 billion today. The US Census Bureau estimates that it is currently about 28 million short of that figure. Either way the population will hit 7 billion very soon. National Geographic...
… a definite “maybe” but at a cost! It has never been apparent that a single currency, with centrally fixed interest rates, could be appropriate for economies as widely diverse as Germany, France, Greece, Italy etc. Surely, it could...
The Centre for Economics and Business Research (‘CEBR’) remains pessimistic on the prospects of survival of the Euro. Writing today, 4th August, the chief executive Douglas McWilliams identifies Italy as being at risk of default: its tight budget...
The Monetary Policy Committee has held the base rate at 0.5% – the level to which it was reduced in March 2009. Growth has been held back by low consumer spending and by government austerity measures starting to bite. Nevertheless, inflation has...
According to the Centre for Economics and Business Research (CEBR), in a press release of 11th July , on the euro: “ Greece is a sideshow ”, “ the real issue is whether Spain and Italy can stay in ” and the conclusion is that...
Dilnot Commission on Funding of Care and Support . The report of the commission , led by economist Andrew Dilnot, was published on 4th July. One of the key recommendations is a cap, suggested to be £35,000 on the sum that anyone can be required...
Early intervention as an investment opportunity ? The case for early intervention to tackle social problems and break the cycle of crime has been argued in a report ‘Early Intervention: Good parents, great kids, better citizens’ written...
Greek bailout … Members of the Eurozone are again being asked to bail out the ailing Greek economy. Aid of 110bn euros was agreed last year and the details of a further 120bn euro bailout are being drawn up. The indications are that the Prime...
You are not alone! HMRC have admitted that, not for the first time, errors in the way they calculate tax codes used for PAYE have affected millions of people. HMRC will now be issuing revised calculations. Many will be receiving rebates of overcharged tax...
Statutory definition of tax residence The government is intending to introduce a statutory residence test for individuals. The intention is to introduce some clarity to an area that is complicated and unclear. Proposals include an interactive online tool to...
