March 2011 - Page 2 of 4 - Financial Planning in Wimbledon

David Pointers Budget Summary

David Pointer of Open Tax Consultancy comments on today’s budget.

“Last year on taking office the Government agreed a new path for making changes to the tax code, to start the process a draft Finance Bill was published in December 2010 for consultation. We therefore already knew many of the Budget changes including some of the proposed allowances and tax rates for income tax and corporation tax”.

David went on to say that new headlines as the Chancellor sat down included the reduction of corporation tax by 2% rather than 1% with effect from April followed by 1% reductions after that. Also the suggestion of a combination of income tax and national insurance into one tax, which is long overdue as is the introduction of a statutory residence test mentioned by Mr Osborne.

The Chancellor’s suggestion that the 50% rate of tax may have a limited life was welcome but received with a good spoonful of skepticism. A 10% discount on inheritance tax for people leaving 10% of their estate to charity is an interesting addition as is the cut in the tax on petrol which is now a huge burden on the household budget.

Moving forward the new Office of Tax Simplification is suggesting more wholesale changes to many areas of taxation including the taxation of small business and the future of small burdensome, outdated tax reliefs.

With the firm background need to balance the country’s books and address the dreaded deficit David added “I really believe we should expect further more regular announcements on perceived tax avoidance, continued reform of the corporate tax system which is now out of kilter with other taxes and perhaps headline grabbers -and vote winners – such as the higher taxation of UK non domiciled individuals”.

David Pointer is a tax specialist working in central London, he runs Open Tax Consultancy and helps high net worth clients with sophisticated tax compliance and planning needs. If it would be helpful to meet David then please get in touch.

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
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David Pointers Budget SummaryDominic2023-12-01T12:51:45+00:00

Long Run Wins It

Today was perhaps the biggest day in horse racing for many people. The Cheltenham Gold Cup is one of the top horse racing events of the year and today’s race was “a modern classic”. It was won by Long Run and as so often seems the case with horse racing, there is something of story behing the horse and team that won just ahead of two previous winners Denman and Kauto Star.

It was good to know that even in horse racing, it is better to look at life in the long run. It is certainly true of investing. I happened to be in the car on the way to a meeting, the radio was on and the BBC commentary was certainly exciting! You can listen to it again here.

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
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Long Run Wins ItDominic2023-12-01T12:51:46+00:00

2010/11 End of Tax Year Guide

For those of you that enjoy the rush that a deadline brings. Here is a guide to the end of the tax year 2010/11. Obviously if you wish to invest money before the end of the tax year into your ISA or pension, you should get in touch as soon as possible.

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting

2010/11 End of Tax Year GuideDominic2023-12-01T12:51:46+00:00

New Guides Available

We have put some good guides within our resources section for you to view. The guides are about inheritance tax planning, ISAs, investment planning, wealth management.

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting

New Guides AvailableDominic2023-12-01T12:51:47+00:00

Merchant Investors Name Change

Its the season for name changes, Merchant Investors are rebranding themselves as Sanlam Investments and Pensions. Much more of a mouthful but reflecting the fact that MI has been part of the Sanlam Group for several years (since 2003).

There’s a new website and the changeover should take place from the start of the new tax year on 6th April 2011 when the new website will go live. Sanlam is a South African company, formed in 1918.

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting

Merchant Investors Name ChangeDominic2023-12-01T12:51:48+00:00

Rising Interest Rates – Summer 2011

I have been in semniar mode most of the day today. I have heard five presentations from some of the more currently successful fund managers. All of them were suggesting interest rates would rise this year. Prior to the horrendous Japanese disaster – six days of hell and counting.. the general sentiment was that they expected UK interest rates to rise in May. They were all of the view that this would probably now be delayed a little, perhaps until July. In terms of the size of rate rises, the only one willing to put a number on things suggested a rise of 0.75% this year (in all by the end of 2011) and a further 0.5% in 2012. If he is right, this would see the Bank of England base rate rise from 0.5% to 1.25% and then reach 1.75% by the end of 2012. Still incredibly low. Of course the consensus may be wrong and we shall have to see what happens at the next MPC meeting.

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting

Rising Interest Rates – Summer 2011Dominic2023-12-01T12:51:48+00:00

Lloyds Bank still getting mortgages wrong?

OK, contraversial issue here. We all know that Banks are not popular. This is largely due to the credit crunch, which was partly caused by irresponsible lending – which meant that many of us had large mortgages approved and so fed the property price boom – which was really little more than self inflated borrowing and a general lack of supply, not genuine “market forces”. Anyhow, with all the horrendous press that Lloyds have had – and my blog about them recently was not exactly favourable, they have launched a new 95% mortgage facility for first time buyers.

On the one hand this appears to be good news. However there is a catch. This is only available where a “helper” (or a local authority) signs up for their “lend a hand scheme” and effectively underwrites what used to be called the mortgage indemnity guarantee (MIG) by providing Lloyds with a 20% deposit. This is really an insurance polcicy against default on the loan. So the local authority is stumping up cash to underwrite a nationalised bank to get first time buyers into a property market that is still overpriced. So in practice, this is nothing more than a 75% mortgage. True some interest will be paid to the “helper” for their 20% deposit with Lloyds (by Lloyds… oh that’s you and me still isn’t it?). I’m not exactly jumping with joy at the prospect of further ineptitude from Banks are you?

Loans can range up to £350,000 for a first time buyer – so assuming that this sum is 95% of the purchase price which would be about £368,421 with a maximum deposit of £18,421…. which probably still requires an income of £100,000 to secure the £350,000 loan… for a first time buyer! So at the top end I don’t see these selling like hot cakes and the scheme seems to have more than a whiff of hot air about it, but hey… its for the journey…the question is surely TO WHERE?

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting

Lloyds Bank still getting mortgages wrong?Dominic2023-12-01T12:51:49+00:00

Business News Update

There has been some good news in the construction industry, with Bovis, the housebuilders, reporting a 6% increase for 2010 pre-tax profits, achieving £18.5m compared with £7.5m the previous year, as more homes were being purchased as well as the cost of building homes reduced. This news comes in the week that Lloyds are beginning to offer first time buyers 95% mortgages again. So there are signs of improvements in the property market.

Mr B is expanding again – Virgin Atlantic announced it is to create 450 jobs in the UK, 350 cabin staff and 50 pilots, as the airline giant will begin a new route between Manchester and Las Vegas as well as an increase in London departures to the Caribbean and Ghana. Great news for a summer outside the UK.

Wolrd famous investment guru, Warren Buffett of Berkshire Hathaway (perhaps the most boring investment website ever?) is to buy Lubrizol in a cash deal worth £5.6bn – 28% above its latest market valuation; the chemicals firm saw net income rise by 46% last year to £468m. I’m guessing that this will be one to watch!

The markets are buying themselves, the US technology exchange Nasdaq is to make a £7.5bn bid for NYSE Euronext, whilst seeking £3.2bn of debt to fund the offer; the deal will compete with the £6.4bn deal between NYSE and Deutsche Boerse already agreed between the two companies’ boards in February.

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting

Business News UpdateDominic2023-12-01T12:51:50+00:00

Japanese Earthquake

The earthquake and tidal wave in Japan is a horrific reminder that the world we inhabit makes life precarious. The Japanese have lived with frequent reminders that their nation happens to be located in a part of the the world where earthquakes are common. They have planned for such events and done about as much as humanly possible for a nation to do at this point in history. Many of their preparations have been proven to be of tremendous value, reducing damage and loss of life, but there is only so much that can be planned for. Sometimes, we simply cannot do enough.

Financial planning is no different, a good, robust plan will take account of most circumstances that life can offer, but however much wealth or insurance one has, it is not real security. We live with the reality that we are stewards of a planet that is really a very large ball of fire covered in rock and water. Some things we can change, others we cannot. Our inability to control the universe and play “god” ought to be apparent to us all, but invariably our world is full of “leaders” that seem to forget this basic truth and are intent only on protecting their own deeply flawed ego. The essence of being human, seems to me to be more about how we respond to suffering and loss as we learn from experiences and find the energy, courage and hope to build again.

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting

Japanese EarthquakeDominic2023-12-01T12:51:50+00:00

Business News Update

There has been some good news over the last week that may have escaped even the keenest eye. Jobs are being created as a result of Jaguar Land Rover signing supply contracts exceeding £2bn with UK companies for its new Range Rover Evoque model; some 1500 jobs are being created in Merseyside.

Marketing giants WPP’s profits in 2010 were a staggering £851m, almost a third up from the previous year, thanks in part to a rebound in US advertising in Q4. This suggests that manufacturers believe that the US consumer has money to spend.

One of our “beloved” nationalised banks, Northern Rock reported a loss of £232.4m for 2010; the nationalised bank said it was making progress and is in talks on returning to private ownership. This may be somewhat premature but as with other banks, demonstrates that repairs are being made to balance sheets. Mind you I still don’t really understand how bonuses are awarded for lossmakers and for effectively doing your job.

The politically sensitive nature of the media has been exposed to some extent again as News Corp owner Rupert Murdoch came under pressure to increase his £7.8bn takeover bid for the remaining stake in BSkyB. The media mogul, who also owns the Times and Sun newspapers, has been trying to ensure his offer avoids issues with the Competition Commission.

Lego prove that childrens toys – or at least good ones, are fairly recession proof. They reported a pre-tax profit of £563m in 2010, a massive rise of 63% from the year before, thanks to its Harry Potter range; the Danish toy manufacturer also reported that sales grew by 32% to £1.8bn and now claims to be the world’s fourth largest toy manufacturer with a global market share of 5.9%.

There is gold in the ground… along with many other things…a consortium of Japanese and South Korean firms has bought a 15% stake in Brazil’s rare earth mining company Companhia Brasileira de Metalurgie e Mineracao in a deal worth £1.9bn. This is further evidence of the growing confidence in Brazil as an investment region.

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting

Business News UpdateDominic2023-12-01T12:51:51+00:00