BlackettwalkerltdPWP IFA WK Jan14 orange
Gosforth Park Avenue, Newcastle upon Tyne Tyne & Wear NE12 8EG 0191 256 9600 [email protected] www.blackett-walker.co.uk
Welcome to your January newsletter. In this month’s Wealth Knowledge newsletter… stamp duty on Exchange Traded Fund shares will be abolished in a bid to encourage funds to domicile in the UK, the Chancellor announced in the Autumn Statement. More than 1.9 million workers have been automatically-enrolled into a workplace pension scheme, according to the Department of Work and Pensions. In other auto-enrolment news, the Chartered Institute for Personnel and Development has warned SMEs not to delay their preparations. HM Revenue & Customs has announced plans to expand its online self-assessment system. And mortgage lending increased 24 per cent in the year to October 2013. As always, please contact us if you would like to discuss any areas of your inancial planning.
January 2014
Stamp duty on ETF shares abolished Stamp duty paid by end investors on shares purchased in Exchange Traded Funds (ETFs) will be abolished from April 2014, Chancellor George Osborne announced in his Autumn Statement. The Chancellor said the change was designed to “encourage those funds [ETFs] to locate in the UK.” It follows the announcement at the March 2013 Budget that stamp duty on shares traded on the Alternative Investment Market would be scrapped. According to research and consultancy irm ETFGI, there are currently more than 400 ETFs domiciled in Ireland but none domiciled in the UK. This means that there will be no immediate impact on end investors but the Treasury hopes that the measure will encourage fund managers to establish ETFs in the UK.
Julie Patterson, from the Investment Management Association, said the announcement was, “... a further important step in a series of signiicant changes made by the Government over recent months to make the UK a more attractive location for investment funds to be based. “For every extra £1 billion of new funds domiciling in the UK, an additional £700,000 could be generated in UK tax revenues, as well as contributing to the economic growth of this country by creating jobs around the UK.”
WE CAN ADVISE... ...on stamp duty. Talk to us to ind out more.
Blackett Walker Ltd is Authorised & Regulated by the Financial Conduct Authority. Registered in England Number: 2895559.
Almost two million auto-enrolled More than 1.9 million workers have been automatically enrolled across nearly 3,000 employers, according to a recent report by the Department of Work and Pensions (DWP). The latest progress report from the DWP shows: • Overall participation in a workplace
pension has increased from 61 per cent to 83 per cent as a result of automatic enrolment • More than 600,000 people are currently
members of the National Employment Savings Trust
among large employers who started automatically enrolling their employees between October 2012 and April 2013. Elsewhere, the Chartered Institute of Personnel and Development (CIPD) has warned all small and mediumsized businesses (SMEs) scheduled to begin auto-enrolment in 2014 that they should begin preparations now. A CIPD survey of 400 private sector companies found that a quarter of SMEs anticipated the need to reduce pay growth, while a ifth expected to
• Opt-out rates are at nine per cent
Paperless selfassessment proposed HM Revenue & Customs (HMRC) has announced plans to make the online selfassessment (SA) service “a more complete end-to-end digital experience”. In 2011/12, 7.65 million SA returns were submitted online but 75 per cent of communications with those customers were made by print-and-post. Under the plans, the SA online service will be upgraded to allow users to receive electronic communications from HMRC. If a user opts-in, they would receive a message - by email or SMS - telling them
that certain notices, reminders or statements were available to view in their online account. The Exchequer Secretary to the Treasury, David Gauke, said: “HMRC’s digital strategy will make processes like SA faster and simpler. It will deliver the tax system for the 21st century that taxpayers expect.” The vast majority of HMRC’s SA customers already ile electronically, but only 25 per cent of their dealings with HMRC are online. Paperless SA will allow customers to do it all online.
freeze pay to absorb the costs of autoenrolment. The CIPD said limited resources and expertise, as well as the cost of implementing the reforms, will present challenges to unprepared SMEs. The institute said small employers can avoid having to take extreme measures if they start planning now.
TALK TO US... ...about auto-enrolment.
Mortgage lending up 24 per cent year-on-year The total number of mortgages lent to home-owners is up 24 per cent since October 2012, according to the Council of Mortgage Lenders (CML). Following a fall in September 2013, loan numbers rebounded strongly with data showing a 17 per cent monthly rise in October. The Bank of England reported that gross UK mortgage lending for October 2013 totalled £17.6 billion, a nine per cent increase from September 2013 and 36 per cent higher than the £12.9 billion in October 2012. The CML data also shows: • The number of loans to irst-time-buyers increased by 33 per
cent since October 2012 • The number of loans given to home-movers in October 2013
totalled 33,900, up 16 per cent compared to October 2012 • Home-owner remortgage activity fell by three per cent over the
year to October 2013 • Lending for buy-to-let was up 11 per cent compared with
September 2013. CML director-general Paul Smee said: “After years of a relatively lat mortgage market, 2013 has shown signs of lending turning a corner and looks set to inish the year strongly. Increased inancial optimism among the public as the economy recovers seems to be driving this upward trend and it is welcome to see that irst-time buyers continue lending momentum as more look to own their irst home.”
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. Your home may be repossessed if you do not keep up repayments on your mortgage. Whilst considerable care has been taken to ensure that the information contained within this document is accurate and up-to-date, no warranty is given as to the accuracy or completeness of any information. Errors and omissions excepted.
Welcome to your January newsletter. In this month’s Wealth Knowledge newsletter… stamp duty on Exchange Traded Fund shares will be abolished in a bid to encourage funds to domicile in the UK, the Chancellor announced in the Autumn Statement. More than 1.9 million workers have been automatically-enrolled into a workplace pension scheme, according to the Department of Work and Pensions. In other auto-enrolment news, the Chartered Institute for Personnel and Development has warned SMEs not to delay their preparations. HM Revenue & Customs has announced plans to expand its online self-assessment system. And mortgage lending increased 24 per cent in the year to October 2013. As always, please contact us if you would like to discuss any areas of your inancial planning.
January 2014
Stamp duty on ETF shares abolished Stamp duty paid by end investors on shares purchased in Exchange Traded Funds (ETFs) will be abolished from April 2014, Chancellor George Osborne announced in his Autumn Statement. The Chancellor said the change was designed to “encourage those funds [ETFs] to locate in the UK.” It follows the announcement at the March 2013 Budget that stamp duty on shares traded on the Alternative Investment Market would be scrapped. According to research and consultancy irm ETFGI, there are currently more than 400 ETFs domiciled in Ireland but none domiciled in the UK. This means that there will be no immediate impact on end investors but the Treasury hopes that the measure will encourage fund managers to establish ETFs in the UK.
Julie Patterson, from the Investment Management Association, said the announcement was, “... a further important step in a series of signiicant changes made by the Government over recent months to make the UK a more attractive location for investment funds to be based. “For every extra £1 billion of new funds domiciling in the UK, an additional £700,000 could be generated in UK tax revenues, as well as contributing to the economic growth of this country by creating jobs around the UK.”
WE CAN ADVISE... ...on stamp duty. Talk to us to ind out more.
Blackett Walker Ltd is Authorised & Regulated by the Financial Conduct Authority. Registered in England Number: 2895559.
Almost two million auto-enrolled More than 1.9 million workers have been automatically enrolled across nearly 3,000 employers, according to a recent report by the Department of Work and Pensions (DWP). The latest progress report from the DWP shows: • Overall participation in a workplace
pension has increased from 61 per cent to 83 per cent as a result of automatic enrolment • More than 600,000 people are currently
members of the National Employment Savings Trust
among large employers who started automatically enrolling their employees between October 2012 and April 2013. Elsewhere, the Chartered Institute of Personnel and Development (CIPD) has warned all small and mediumsized businesses (SMEs) scheduled to begin auto-enrolment in 2014 that they should begin preparations now. A CIPD survey of 400 private sector companies found that a quarter of SMEs anticipated the need to reduce pay growth, while a ifth expected to
• Opt-out rates are at nine per cent
Paperless selfassessment proposed HM Revenue & Customs (HMRC) has announced plans to make the online selfassessment (SA) service “a more complete end-to-end digital experience”. In 2011/12, 7.65 million SA returns were submitted online but 75 per cent of communications with those customers were made by print-and-post. Under the plans, the SA online service will be upgraded to allow users to receive electronic communications from HMRC. If a user opts-in, they would receive a message - by email or SMS - telling them
that certain notices, reminders or statements were available to view in their online account. The Exchequer Secretary to the Treasury, David Gauke, said: “HMRC’s digital strategy will make processes like SA faster and simpler. It will deliver the tax system for the 21st century that taxpayers expect.” The vast majority of HMRC’s SA customers already ile electronically, but only 25 per cent of their dealings with HMRC are online. Paperless SA will allow customers to do it all online.
freeze pay to absorb the costs of autoenrolment. The CIPD said limited resources and expertise, as well as the cost of implementing the reforms, will present challenges to unprepared SMEs. The institute said small employers can avoid having to take extreme measures if they start planning now.
TALK TO US... ...about auto-enrolment.
Mortgage lending up 24 per cent year-on-year The total number of mortgages lent to home-owners is up 24 per cent since October 2012, according to the Council of Mortgage Lenders (CML). Following a fall in September 2013, loan numbers rebounded strongly with data showing a 17 per cent monthly rise in October. The Bank of England reported that gross UK mortgage lending for October 2013 totalled £17.6 billion, a nine per cent increase from September 2013 and 36 per cent higher than the £12.9 billion in October 2012. The CML data also shows: • The number of loans to irst-time-buyers increased by 33 per
cent since October 2012 • The number of loans given to home-movers in October 2013
totalled 33,900, up 16 per cent compared to October 2012 • Home-owner remortgage activity fell by three per cent over the
year to October 2013 • Lending for buy-to-let was up 11 per cent compared with
September 2013. CML director-general Paul Smee said: “After years of a relatively lat mortgage market, 2013 has shown signs of lending turning a corner and looks set to inish the year strongly. Increased inancial optimism among the public as the economy recovers seems to be driving this upward trend and it is welcome to see that irst-time buyers continue lending momentum as more look to own their irst home.”
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. Your home may be repossessed if you do not keep up repayments on your mortgage. Whilst considerable care has been taken to ensure that the information contained within this document is accurate and up-to-date, no warranty is given as to the accuracy or completeness of any information. Errors and omissions excepted.
