BlackettwalkerltdPWP IFA Mar13 WK orange
Gosforth Park Avenue, Newcastle upon Tyne Tyne & Wear NE12 8EG 0191 256 9600 [email protected] www.blackett-walker.co.uk
Welcome to the March issue of your Wealth Knowledge newsletter. This month, with the end of the current tax-year on the horizon, we ask you to consider whether you’ve made vjg"oquv"qh"{qwt"vcz"g ekgpv" savings and allowances. Elsewhere, pensions come under the spotlight with a look at the ways that your pension and retirement options can be better understood and protected by both you and the industry. Finally, we touch on the Funding for Lending Scheme and ask, “is the Government initiative designed to boost lending to households and businesses working?” As always, please contact us if you would like to discuss any ctgcu"qh"{qwt" pcpekcn"rncppkpi0
March 2013
Jcxg"{qw"wugf"{qwt"vcz"gh-ekgpv" savings and investment allowances? The end of the 2012/13 tax year on 5 April is fast approaching. With new tax rates and allowances introduced every year, it is good practice to regularly review your saving and tax plans. There isn’t much time left to ensure you’ve taken full advantage of savings allowances that may be available to you but some of the things you may want to consider include:
in cash. The remainder can be invested into stocks and shares, or, alternatively, the entire allowance can be invested into stocks and shares. Many banks and building societies may have already closed their subscriptions to ISAs but some are still available. From 6 April, the 2013/14 tax year ISA allowance will increase to a total of £11,520, of which the cash subscription limit will be £5,760.
Income tax
Pension contributions
Individuals with a taxable income above £150,000 are currently taxed at the additional rate of 50 per cent. However, this is reducing to 45 per cent on 6 April 2013. There may be ways to defer your income from 2012/13 to the 4235136"vcz"{gct"vq"dgpg v"htqo"vjg" xg"rgt" cent tax reduction on the amount deferred.
To encourage saving for retirement, the Government allows individuals tax relief on investments up to £3,600 per year (gross) into a personal or stakeholder pension scheme, or 100 per cent of your earnings - whichever is the greater. This is capped, however, at the annual allowance.
Individual Savings Accounts (ISAs) ろUCu"qやgt"c"vcz"g ekgpv"yc{"qh"ucxkpi"oqpg{0" While the amount you invest does not attract tax relief, any interest and gains on the investment will be tax-free. For the 2012/13 tax year, a total of £11,280 can be invested into an ISA, of which a maximum of £5,640 can be
For the 2012/13 and 2013/14 tax years, the annual allowance is £50,000 with the Government announcing this will fall to £40,000 from 2014/15. However, if you have not used all of the annual allowance for the previous three tax years, you may be able to carry forward any unused allowance to the
Blackett Walker Ltd is Authorised & Regulated by the Financial Services Authority. Registered in England Number 2895559.
current tax year. Please talk to us for more advice on this.
WE CAN ADVISE...
The lifetime allowance is the maximum amount of pension savings you can build up throughout your nkhg"vjcv"ecp"dgpg v"htqo"vcz"tgnkgh0"Vjg"nkhgvkog"cnnqycpegu"hqt"vjg"4234135"cpf"4235136"vcz"{gctu"ku" £1.5 million. This will also fall for the 2014/15 tax year, to £1.25 million.
Protecting your pensions Beware of scams As part of its pension fraud campaign, the Pensions Advisory Service has published advice on avoiding various scams. This includes ‘pension loans’ or cash incentives: schemes that target savers who are nearing retirement and persuade them to cash-in their pensions early. Firms taking part in this activity, which is also known as ‘liberation fraud’, often supply misleading information to entice savers, who could end up facing a tax bill worth more than half of their pension savings. The Government encourages workers to save towards their retirement by attaching certain tax advantages to saving with a pension on the condition that the money is not accessed too early. In some rare cases such as terminal illness, it is possible for savers to gain early access funds from their pension scheme. Jqygxgt."c"pwodgt"qh" tou"enckokpi"vq"
qやgt"vjku"ugtxkeg"ctg"gkvjgt"wpcwvjqtkugf" and/or providing potentially unlawful services Taking an early ‘unauthorised payment’ in this way could result in you being subject to tax charges worth more than half the value of your pension. It is also likely that fees for transferring pensions in this way will be recovered by HMRC, further depleting the value of your pension savings - in some cases by an additional 42"rgt"egpv0"Dg"cyctg"qh< " Dgkpi"qやgtgf"ceeguu"vq"{qwt"rgpukqp" " " " "
before 55 years of age Ncem"qh"fqewogpvcvkqp"htqo"vjg" to Unsolicited calls and text messages Pressure for speedy transfer of cash Transferring money overseas
...on how to use your tax allowances - please talk vq"wu"vq" pf"qwv"oqtg0
initiative available since 1 March. It is hoped that 400,000 people who buy an annuity gcej"{gct"yknn"dgpg v"htqo"vjg"Cuuqekcvkqp" qh"Dtkvkuj"ろpuwtgtu "eqfg"qh"eqpfwev."yjkej" is designed to help them better understand their choices. Under the code, pension rtqxkfgtu"yknn"dg"tgswktgf"vq< " Provide clear, timely and accurate
information to savers at least six months from retirement " Gzrnckp"vjg"fkやgtgpv"yc{u"vq"vcmg" retirement income " Encourage savers to shop around for the right deal. Providers will also be banned from including annuity application forms when eqpvcevkpi"ucxgtu."wpnguu"urgek ecnn{"cumgf" to do so, to encourage savers to look at the other options available. WE CAN ADVISE...
Greater protection
...qp"{qwt"rgpukqp"qrvkqpu"cpf" jgnr"{qw"nqqm"hqt"vjg"oquv" appropriate solution.
People nearing retirement will now receive clearer information on the best pension options for them under a new
Funding for Lending Scheme – is it easier to Savers: The FLS is believed to have pushed mortgage costs for home buyers, borrow now? down interest rates on deposit accounts "
particularly for those who have c"jkijgt"gswkv{"kp"vjgkt"jqog0"ろv" is expected that the savings will gxgpvwcnn{" nvgt"fqyp"vq"dqttqygtu" with smaller deposits.
Launched in July 2012, the Government’s Funding for Lending Scheme (FLS) provides incentives to banks and building societies to increase their lending to households and small businesses. Has it worked?
Ncvguv" iwtgu"htqo"vjg"Dcpm"qh"Gpincpf"cpf" the Treasury reveal that, despite providing nearly £14 billion of funding to banks under the FLS, net lending in fact fell by £2.4 billion kp"vjg" pcn"swctvgt"qh"4234"eqorctgf"vq" vjtgg"rtgxkqwu"oqpvju0"Vjg"Dcpm"qh"Gpincpf" has blamed the process of loan application and approvals.
" Businesses: Lending to smaller
How the FLS has performed:
businesses - deemed to be highrisk in the current economic climate /"jcu"hcnngp"ukipk ecpvn{"ukpeg"vjg" launch of the initiative. This has been attributed to a lack of demand htqo"dwukpguugu"cpf"vjg"Dtkvkuj" Dcpmkpi"Cuuqekcvkqp"dgnkgxgu"vjcv" most loans that are asked for by businesses are approved.
and ISAs. As always, it is important to ujqr"ctqwpf"vq" pf"vjg"oquv"crrtqrtkcvg" savings account with the best rates. WE CAN HELP... 000ykvj"ucxkpiu"cpf"kpxguvogpvu"/" vcnm"vq"wu"vq" pf"qwv"oqtg0
" Mortgages: The FLS seems to have cut
Important Information The way in which tax charges (or tax relief, as appropriate) are applied depends upon individual circumstances and may be subject to change in the future. This document is solely for information purposes and nothing in this document is intended to constitute
advice or a recommendation. You should not make any investment decisions based upon its content. The value of investments can fall as well as rise and you may not get back the full amount you originally invested. Whilst considerable care has been taken to ensure
that the information contained within this document is accurate and upto-date, no warranty is given as to the accuracy or completeness of any information. E & OE.
Welcome to the March issue of your Wealth Knowledge newsletter. This month, with the end of the current tax-year on the horizon, we ask you to consider whether you’ve made vjg"oquv"qh"{qwt"vcz"g ekgpv" savings and allowances. Elsewhere, pensions come under the spotlight with a look at the ways that your pension and retirement options can be better understood and protected by both you and the industry. Finally, we touch on the Funding for Lending Scheme and ask, “is the Government initiative designed to boost lending to households and businesses working?” As always, please contact us if you would like to discuss any ctgcu"qh"{qwt" pcpekcn"rncppkpi0
March 2013
Jcxg"{qw"wugf"{qwt"vcz"gh-ekgpv" savings and investment allowances? The end of the 2012/13 tax year on 5 April is fast approaching. With new tax rates and allowances introduced every year, it is good practice to regularly review your saving and tax plans. There isn’t much time left to ensure you’ve taken full advantage of savings allowances that may be available to you but some of the things you may want to consider include:
in cash. The remainder can be invested into stocks and shares, or, alternatively, the entire allowance can be invested into stocks and shares. Many banks and building societies may have already closed their subscriptions to ISAs but some are still available. From 6 April, the 2013/14 tax year ISA allowance will increase to a total of £11,520, of which the cash subscription limit will be £5,760.
Income tax
Pension contributions
Individuals with a taxable income above £150,000 are currently taxed at the additional rate of 50 per cent. However, this is reducing to 45 per cent on 6 April 2013. There may be ways to defer your income from 2012/13 to the 4235136"vcz"{gct"vq"dgpg v"htqo"vjg" xg"rgt" cent tax reduction on the amount deferred.
To encourage saving for retirement, the Government allows individuals tax relief on investments up to £3,600 per year (gross) into a personal or stakeholder pension scheme, or 100 per cent of your earnings - whichever is the greater. This is capped, however, at the annual allowance.
Individual Savings Accounts (ISAs) ろUCu"qやgt"c"vcz"g ekgpv"yc{"qh"ucxkpi"oqpg{0" While the amount you invest does not attract tax relief, any interest and gains on the investment will be tax-free. For the 2012/13 tax year, a total of £11,280 can be invested into an ISA, of which a maximum of £5,640 can be
For the 2012/13 and 2013/14 tax years, the annual allowance is £50,000 with the Government announcing this will fall to £40,000 from 2014/15. However, if you have not used all of the annual allowance for the previous three tax years, you may be able to carry forward any unused allowance to the
Blackett Walker Ltd is Authorised & Regulated by the Financial Services Authority. Registered in England Number 2895559.
current tax year. Please talk to us for more advice on this.
WE CAN ADVISE...
The lifetime allowance is the maximum amount of pension savings you can build up throughout your nkhg"vjcv"ecp"dgpg v"htqo"vcz"tgnkgh0"Vjg"nkhgvkog"cnnqycpegu"hqt"vjg"4234135"cpf"4235136"vcz"{gctu"ku" £1.5 million. This will also fall for the 2014/15 tax year, to £1.25 million.
Protecting your pensions Beware of scams As part of its pension fraud campaign, the Pensions Advisory Service has published advice on avoiding various scams. This includes ‘pension loans’ or cash incentives: schemes that target savers who are nearing retirement and persuade them to cash-in their pensions early. Firms taking part in this activity, which is also known as ‘liberation fraud’, often supply misleading information to entice savers, who could end up facing a tax bill worth more than half of their pension savings. The Government encourages workers to save towards their retirement by attaching certain tax advantages to saving with a pension on the condition that the money is not accessed too early. In some rare cases such as terminal illness, it is possible for savers to gain early access funds from their pension scheme. Jqygxgt."c"pwodgt"qh" tou"enckokpi"vq"
qやgt"vjku"ugtxkeg"ctg"gkvjgt"wpcwvjqtkugf" and/or providing potentially unlawful services Taking an early ‘unauthorised payment’ in this way could result in you being subject to tax charges worth more than half the value of your pension. It is also likely that fees for transferring pensions in this way will be recovered by HMRC, further depleting the value of your pension savings - in some cases by an additional 42"rgt"egpv0"Dg"cyctg"qh< " Dgkpi"qやgtgf"ceeguu"vq"{qwt"rgpukqp" " " " "
before 55 years of age Ncem"qh"fqewogpvcvkqp"htqo"vjg" to Unsolicited calls and text messages Pressure for speedy transfer of cash Transferring money overseas
...on how to use your tax allowances - please talk vq"wu"vq" pf"qwv"oqtg0
initiative available since 1 March. It is hoped that 400,000 people who buy an annuity gcej"{gct"yknn"dgpg v"htqo"vjg"Cuuqekcvkqp" qh"Dtkvkuj"ろpuwtgtu "eqfg"qh"eqpfwev."yjkej" is designed to help them better understand their choices. Under the code, pension rtqxkfgtu"yknn"dg"tgswktgf"vq< " Provide clear, timely and accurate
information to savers at least six months from retirement " Gzrnckp"vjg"fkやgtgpv"yc{u"vq"vcmg" retirement income " Encourage savers to shop around for the right deal. Providers will also be banned from including annuity application forms when eqpvcevkpi"ucxgtu."wpnguu"urgek ecnn{"cumgf" to do so, to encourage savers to look at the other options available. WE CAN ADVISE...
Greater protection
...qp"{qwt"rgpukqp"qrvkqpu"cpf" jgnr"{qw"nqqm"hqt"vjg"oquv" appropriate solution.
People nearing retirement will now receive clearer information on the best pension options for them under a new
Funding for Lending Scheme – is it easier to Savers: The FLS is believed to have pushed mortgage costs for home buyers, borrow now? down interest rates on deposit accounts "
particularly for those who have c"jkijgt"gswkv{"kp"vjgkt"jqog0"ろv" is expected that the savings will gxgpvwcnn{" nvgt"fqyp"vq"dqttqygtu" with smaller deposits.
Launched in July 2012, the Government’s Funding for Lending Scheme (FLS) provides incentives to banks and building societies to increase their lending to households and small businesses. Has it worked?
Ncvguv" iwtgu"htqo"vjg"Dcpm"qh"Gpincpf"cpf" the Treasury reveal that, despite providing nearly £14 billion of funding to banks under the FLS, net lending in fact fell by £2.4 billion kp"vjg" pcn"swctvgt"qh"4234"eqorctgf"vq" vjtgg"rtgxkqwu"oqpvju0"Vjg"Dcpm"qh"Gpincpf" has blamed the process of loan application and approvals.
" Businesses: Lending to smaller
How the FLS has performed:
businesses - deemed to be highrisk in the current economic climate /"jcu"hcnngp"ukipk ecpvn{"ukpeg"vjg" launch of the initiative. This has been attributed to a lack of demand htqo"dwukpguugu"cpf"vjg"Dtkvkuj" Dcpmkpi"Cuuqekcvkqp"dgnkgxgu"vjcv" most loans that are asked for by businesses are approved.
and ISAs. As always, it is important to ujqr"ctqwpf"vq" pf"vjg"oquv"crrtqrtkcvg" savings account with the best rates. WE CAN HELP... 000ykvj"ucxkpiu"cpf"kpxguvogpvu"/" vcnm"vq"wu"vq" pf"qwv"oqtg0
" Mortgages: The FLS seems to have cut
Important Information The way in which tax charges (or tax relief, as appropriate) are applied depends upon individual circumstances and may be subject to change in the future. This document is solely for information purposes and nothing in this document is intended to constitute
advice or a recommendation. You should not make any investment decisions based upon its content. The value of investments can fall as well as rise and you may not get back the full amount you originally invested. Whilst considerable care has been taken to ensure
that the information contained within this document is accurate and upto-date, no warranty is given as to the accuracy or completeness of any information. E & OE.
