We all knew that it was not going to be pretty, but George Osborne certainly seems to have ‘grasped the nettle’ of controlling the UK’s debt and fiscal policy. Time will tell if it is successful in hitting its fiscal targets.
The headline changes are likely to be:
* The increase in VAT from 17.5% to 20% from January next year. This could also have an effect on inflation.
* It should also be noted that Capital Gains Tax (CGT) allowance of £10,100 will remain in place which is good news. Above this, the flat rate of CGT will increase from 18% to 28% for higher earners from midnight tonight (staying the same for basic rate tax payers) , which falls more in line with its former levels and in line with the levels applicable in Europe.
* It is also good to see the tax free personal allowance will increase by £1,000 to £7,475 from April next year. The target is still to increase this level to £10,000 per annum.
* For business, many directors and business owners being pleased to see corporation tax rates being reduced over the next 4 years, by 1% per annum.
As ever, I am sure the devil will be in the detail and there are many other areas, such as:
* A pay freeze for Public Sector employees (earning over £21,000 per annum)
* Increase in Bank Levy’s
* Capital allowance changes for business/ Extention of 10% entrepreneurs releif to £5M from £2M
* Green Investment Banks
* Up rating of benefits from RPI to CPI (a fall of around 1% per annum based on past years)
* Child Benefit frozen for 3 years
* No plan to join the Euro in this parliament
This is the first of the new coalition Governments budgets and it will be interesting how well their fiscal policy will control the problems of the UK economy. It will also be interesting to see how the markets and credit agencies respond, which based on initial reactions seems to be positive. Time will tell if this is maintained.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority. No individual advice is provided in this comment and you should seek independent financial advice for your own needs.
Tuesday 22 June 2010
Monday 21 June 2010
A tale of satisfaction!
An existing client hit some financial difficulties and unfortunately ran out of options as to how to solve his financial woes. During his working lifetime he had accumulated a reasonable size pension fund and as this was the last remaining financial assets, other than the house, I provided some financial advice on ways that this could be used to release tax free cash and to provide some much needed income for the household economy. He had lost his employment and was retraining to follow another career path which would provide sufficient annuity income for him and his wife to clear their debts and get themselves back on their financial feet.
Although taking benefits early, which is usually not advisable, we agreed that the best course of action was to use the pension fund to release tax free cash and annuity income (via an Open Market Option) and the future looks brighter for the client, having qualified for his new role and with his finances in better order.
The reason why I am blogging about this, is that it very easy to get tied up in the technical facts, pension rules and tax calculations of our work, after all that is what we train for. However, particularly in this example, our advice made a real and positive difference to a clients life and prospects for the future. The client is delighted and correctly feels that he has turned a corner and I feel satisfaction that we have helped a client to realise their potential with the help of independent financial advice (IFA).
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority. This example does not provide any financial advice and each individual should seek independent financial advice before taking any action with reference to their own arrangements.
Although taking benefits early, which is usually not advisable, we agreed that the best course of action was to use the pension fund to release tax free cash and annuity income (via an Open Market Option) and the future looks brighter for the client, having qualified for his new role and with his finances in better order.
The reason why I am blogging about this, is that it very easy to get tied up in the technical facts, pension rules and tax calculations of our work, after all that is what we train for. However, particularly in this example, our advice made a real and positive difference to a clients life and prospects for the future. The client is delighted and correctly feels that he has turned a corner and I feel satisfaction that we have helped a client to realise their potential with the help of independent financial advice (IFA).
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority. This example does not provide any financial advice and each individual should seek independent financial advice before taking any action with reference to their own arrangements.
Friday 18 June 2010
Success! Delivering professionalism with British Standards/ ISO22222 for another year
As you may have noted in my previous blog, I recently undertook my third annual assessment for ISO22222 Personal Financial Planning. This is the British Standards for Personal Financial Planning and assessed by Standards International. As before, I would like to thank Standards International for their support and guidance for the assessment and the past three years we have been working together.
I felt that the assessment went well, and this morning I received confirmation that I had passed the assessment well. I am obviously delighted.
One point that I did not know is that Standards International have been working closely with Which?(The Consumer Association) who have always been extremely supportive of those advisers that have achieved ISO 22222 certification. As such they will add my contact details onto their database which is given to Which? members who require assistance and information relating to financial advice. This agian demonstrates the benefits of undertaking this rigourous assessment.
But what does the assessment undertake and why blog about it?
The details were mentioned in my previous blog, however, the reasons are that, in my opinion, this is one of the most important qualifications that can be achieved in the financial advice industry. The difference with the ISO22222 Personal Financial Planning assessment is that they look at the nitty gritty of what has actually been delivered, at the coal face if you like, to the clients you have seen and helped over the last year’s period. So the assessment is about what has been delivered, what the client receives, the structured format that they receive it, allowing full two way communication and not what you can remember from your text book studies.
The improvements that have been made to service over the last 3 years can be attributable in part to the processes that they recommend and implement to ensure that our clients, the most important individuals in any financial planning process, are served in an ethical, profession and timely fashion to make sure that their expectations are met and exceeded when planning their finances for their futures.
Obviously delighted with the news this morning and I look forward to continuing to meet the standards into the furture.
Keith Churchouse, Director of Churchouse Financial Planning Limited in Guildford, Surrey
Author of Sign Here, Here and Here!…Journey of a financial adviser
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.
I felt that the assessment went well, and this morning I received confirmation that I had passed the assessment well. I am obviously delighted.
One point that I did not know is that Standards International have been working closely with Which?(The Consumer Association) who have always been extremely supportive of those advisers that have achieved ISO 22222 certification. As such they will add my contact details onto their database which is given to Which? members who require assistance and information relating to financial advice. This agian demonstrates the benefits of undertaking this rigourous assessment.
But what does the assessment undertake and why blog about it?
The details were mentioned in my previous blog, however, the reasons are that, in my opinion, this is one of the most important qualifications that can be achieved in the financial advice industry. The difference with the ISO22222 Personal Financial Planning assessment is that they look at the nitty gritty of what has actually been delivered, at the coal face if you like, to the clients you have seen and helped over the last year’s period. So the assessment is about what has been delivered, what the client receives, the structured format that they receive it, allowing full two way communication and not what you can remember from your text book studies.
The improvements that have been made to service over the last 3 years can be attributable in part to the processes that they recommend and implement to ensure that our clients, the most important individuals in any financial planning process, are served in an ethical, profession and timely fashion to make sure that their expectations are met and exceeded when planning their finances for their futures.
Obviously delighted with the news this morning and I look forward to continuing to meet the standards into the furture.
Keith Churchouse, Director of Churchouse Financial Planning Limited in Guildford, Surrey
Author of Sign Here, Here and Here!…Journey of a financial adviser
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.
Thursday 17 June 2010
Oh what a night!
No, not the catchy song from the 60’s, or South Africa losing to Paraguay in their world cup match, but the proposed shake up of financial services regulation.
As noted in my recent book, Sign Here, Here and Here!...Journey of a financial adviser (ISBN: 978-0-9564325-0-6), change in financial services regulation seems to be inevitable and regular, with significant regulation effects being felt in 1988 and 1994 to name a few examples.
The handover of significant authority from the FSA to the Bank of England will take time and its effects, I am sure will be far reaching. From a financial advisers point of view, there were many proposals already being worked on leading up to a radical change at the end of 2012, namely the Retail Distribution Directive, or RDR as it is known.
I think that it is a good thing that Hector Sants, the Chief Executive of the FSA, is staying on to oversee these changes and this will provide continuity for a difficult role. Let’s face it, all things banking and financial services have been fair game for criticism, however we all need these services and they remain vital to our economy.
I think that it is good news that this nettle has been grasped and although I am sure there will be some pain over the next year or two with the transition to 2012, I believe that this unfurling news should be welcomed.
Wednesday 9 June 2010
Delivering Professionalism with British Standards/ ISO22222
Yesterday, I undertook my third annual assessment for ISO22222 Personal Financial Planning. This is the British Standards for Personal Financial Planning and assessed by Standards International. I would like to thank Standards International for their support and guidance for yesterday and the past three years we have been working together. You have allowed our IFA business to grow.
The assessment went well and I look forward to the results in due course. So, why am I blogging about this? The reason is that, in my opinion, this is one of the most important qualifications that can be achieved in the financial advice industry. Sure, everyone can read an exam text book to understand the technical issues of pensions, investments, ISAs and annuities as examples, and having undertaken most of the financial advice exams available, I should know. The difference with the ISO22222 Personal Financial Planning assessment is that they look at the nitty gritty of what has actually been delivered, at the coal face if you like, to the clients you have seen and helped over the last year’s period. So the assessment is about what has been delivered, what the client receives, the structured format that they receive it, allowing full two way communication and not what you can remember from your text book studies.
The improvements that have been made to service over the last 3 years can be attributable in part to the processes that they recommend and implement to ensure that our clients, the most important individuals in any financial planning process, are served in an ethical, profession and timely fashion to make sure that their expectations are met and exceeded when planning their finances for their futures.
Thank you again to Alison, Michelle and the team at Standards International and I look forward to continuing the process in future years.
Keith Churchouse
Director of Churchouse Financial Planning Limited
Churchouse Financial Planning Limited is Authorised and Regulated by the Financial Services Authority.
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