Which Election will affect your financial planning?

We are just over a week away from the day that we cast our votes and make the decision as to which party or parties are going to lead our nation into the future. Sadly, apathy to the choices available due to expenses scandals may be the overall winner.

Not since the 1970’s has the race been so close and the prospect of a hung parliament seems to be an ever more real prospect. As is currently being muted, and based on the polls, the prospect of a coalition government is realistic and it appears that other than Germany, many of this partnerships do not last long, requiring a further general election soon after. Just Google 1974 and politics and you will see what I mean.

Whoever sits in Number 10 (and Number 11), the reality is that the UK has some significant financial issues to face and this will require a firm hand to steer us through what is likely to be a tricky few years. All political parties are clear on this, it’s just the way they wish to dress the issues that change. This is likely to mean that the ‘tax take’ required from individuals will rise, as it will for business. And this will have an effect on personal financial planning as it will for business planning, with the real possibility of changing income, capital gains and IHT tax rates, allowances and reliefs, such as pensions, being changed.

This is likely to make 2010 a year of change with proposed emergency budgets and changes in legislation which is likely to make financial planning ever more crucial over the coming year and years. Reviewing your finances and financial planning regularly during the year will be important in ensuring that any new requirements for increased taxation are planned for accordingly.

Finally, is it me, or have the Chancellor and prospective Tory Chancellor been moved out of the limelight with only Vince Cable making regular public appearances? We don’t see or hear them much.

Be ready for your planning in 2010 and for financial planning advice, contact Churchouse Financial Planning Limited on 01483 578800 or at info@churchouse.com.

Churchouse Financial Planning is authorised and regulated by the Financial Services Authority

Pensions Contracting in or out? Have you made your decision?

Pensions Contracting in or out?

This is a subject that comes up quite regularly and involves your second state pension. Nearly everyone can expect to get a basic State Pension when they reach State Pension age, currently around 65, but this age is rising. You qualify for the State Second Pension (S2P, although it was known as SERPS) if you are or have been employed and earning above a certain amount on which you have paid National Insurance contributions (NICs). The government currently allows people to leave S2P by contracting out. If you contract out, the government will pay some of your National Insurance contributions (called a rebate) and income tax relief into a personal or stakeholder pension of your choice.

This money is invested to provide benefits at retirement instead of the benefits you would have received from S2P had you remained in the state scheme.

The government is expected to remove the option to contract out of S2P from 2012, but final salary occupational schemes will keep the option.

If you are contracted out through a personal or stakeholder pension, you should review your decision now.

Your decision about whether to stay contracted out will depend on, among other things:

• your personal circumstances
• how you wish to receive your benefits at retirement
• your attitude to investment risk

Although each client is different, we would normally recommend that you contract back into the State system and if you would like to achieve this change then we would recommend this is undertaken before the end of the tax year. We look forward to hearing from you if this is of interest to you.

This may also provide a great opportunity to review your pension planning at the same time.

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.

Newsletter Notes March 2010/ End of tax year planning

End of Tax Year Planning Issues 2009/2010

Having just finished our march 2010 client Newsletter, I did not think it would be prudent to not provide you with a reminder of the tax year end issues which are coming a bit earlier this year because of the Easter break. Some institutions will only accept applications and changes up to Thursday 01^st April because of this.

A quick reminder of the issues that you may want to consider with your financial planning are:

• ISA investment 2009/2010, up to £10,200 for those over the age of 50.
• New ISA allowance 2010/2011 of £10,200 for all from 06^th April 2010.
• Capital Gains Tax allowance available up to £10,100 in the tax year 2009/2010.
• Gift allowance of £3,000 per donor for inheritance tax purposes (you can also go back 1 year if not used).
• Tax changes due for those earning over £100,000 pa with a phased reduction in the personal allowance and over £150,000 pa (50% income tax) from 06^th April 2010.
• Pension contributions allowances for 2009/2010.
• Minimum Pension age increases to 55 from 06^th April 2010.

This is not an exhaustive list and your planning may involve one or more of these allowances. If you have not completed your planning for this tax year then please let us know how we can help to maximise the potential that may be available to you.

With a general election due in the next few months, you may be reminded that donations to political parties are an allowable business expense.

Contact Churchouse Financial Planning Limited at info@churchouse.com for further information.

Churchouse Financial Planning Limited is Authorised and Regulated by the Financial Services Authority

Independent Financial Advice for Charitable Trusts

The responsibilities of Trustees for Charitable Trusts have grown over the years and this can be evidenced by legislation, such as the Trustees Act 2000. Most Trustees are now well versed in these requirements and the way that they should be administered to ensure that the Trust that they act for receives quality advice and guidance for its investments.
Many existing Trusts are historic and accumulate significant assets over time. It is the Trustees responsibility to invest and manage these assets in the best interests of the Trust and the beneficiaries. The Charities Commission provides investment information to Trustees as indicated in the Charities Commission document CC14 ‘Investment of Charitable Funds: Basic Principles’.
On a regular basis, Trustees review the investments under their control and consider some of the following points:
• An overview of the current economic climate.
• The allocation of scheme assets, including its diversification across asset classes.
• The suitability for their charity of an investment.
• The need to rebalance any investments in light of the needs of the scheme, such as capital growth or income.
• The future liabilities to the scheme for specific projects taking account of any endowment requirements the Trust may have.
• The fees that are being paid to advisers.
This list is not exclusive, however it does provide a guide to some of the requests that Churchouse Financial Planning has received in providing advice to the Trustees of Charitable Trusts to help them with their statutory duty of care.
As Independent Financial Advisers (IFA) and Chartered Financial Planners we are well placed to help you and your fellow Trustees with your review process of your Charitable Trust to provide financial advice and expertise to meet the future needs and requirements of the arrangement. We can be contacted on 01483 578800

Churchouse Financial Planning Limited is Authorised and regulated by the Financial Services Authority

Churchouse appoints New Relationship Manager for 2010

New Relationship Manager, Jacqui O’Neill

I am sure you will join me in welcoming Jacqui O’Neill to the Team at Churchouse. Jacqui’s new role is Relationship Manager. As the team gets ever busier, Jacqui’s role will be to maintain and enhance communications to our existing clients and new enquirers. She will also be focussing on our newsletters, as you can see!

Jacqui noted “The challenge in 2010 will be significant as we anticipate more financial volatility in the next 12 months and with other events, such as the General Election and new requirements for employers’ pension schemes on the horizon, managing client service is going to be vital. I am looking forward to 2010 and the challenges that we will face together”.

Keith Churchouse, Director at Churchouse Financial planning Limited is delighted with the appoint in what looks to be a very different year to 2009, adding ‘ 2010 has significant promise for individuals and businesses alike. With significant events such as the General Election on the horizon, I am very pleased that we have strengthened the team at Churchouse Financial Planning with the addition of Jacqui’.

The team at Churchouse Financial planning Limited can be contacted on 01483 578800 or at info@churchouse.com.

Churchouse Financial Planning Limited is Authorised and Regulated by the Financial Services Authority.

Proposed Changes for Employees and Employers from 2012?… but maybe later!

This is a subject that has gone largely unnoticed by many employers so far, but as time ticks by, the issue of the proposed National Pension Savings Scheme (NPSS) (or Personal Accounts, as they are sometimes known) will become highly topical. It was proposed to start in October 2012, and this is still the case for larger employers. However, the Government has announced that the scheme would now be phased in, with smaller employers joining up over the following three years. The scheme will force both employers and employees to save for their retirement and people will automatically be enrolled, but with the right to opt out. Contributions will be set and required from both parties involved and could have an effect on future budget planning.

Churchouse Fianncial Planning Limited is Authorised and Regulated by the Financial Services Authority.

Balance and Re-balance, Has yours changed in 2009?

2009 has proved to be a volatile investment year and for some areas, such as UK Equities, this volatility has been positive, replenishing some of the falls of the previous months. This is obviously not a garantee of future performance and values can fall as well as rise. Many of the recommended investment/pension holdings recommended by Churchouse Financial Planning Limited over the years have been diversified into various areas to create a balance based around your overall attitude to investment risk.

As time moves, invariably so does the balance of your investment holdings as a whole or as individual plans. Because of this we would recommend that you review this balance on a regular basis to ensure that it continues to meet with your attitude to investment risk and your circumstances, which may have also changed over time.

You should seek independent financial advice for your individual arrangements before making any changes.

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.