e.g. Private aviation, Scuba Diving etc

The last couple of weeks have seen me quoting an above average number of Life Protection and Business Protection terms for individuals that participate in hazardous pastimes including flying helicopters and scuba diving.

Contrary to popular belief amongst participants in these activities, there can actually a very real risk of injury with some activities, and many participants have previously struggled to obtain life cover and critical illness cover because of this. In fact some clients have simply not bothered trying because they did not believe they would be able to obtain cover full stop.

Well, this simply isnt the case! there are obviously cost implications for certain hazardous pastimes, but by asking the correct questions and getting the correct underwriting assistance there is still a very competitive market within certain mainstream life insurance companies.

The benefit of our being independent means that we are able to approach the medical underwriters of all the life insurance companies to secure fair rates! Different companies treat hazardous activity loadings in differing degrees and sometimes it means researching several companies before submitting applications, or even submitting multiple applications, and sometimes avoiding what may appear at first glance to be the best value.

Allow us to do the leg work for you! so if you or any of your contacts have had problems in the past, or simply havent tried, then please pass on my details and I will see what I can do.

Shane Beardsley

We have started to send out regular email newsletters to our clients which will contain articles of interest and industry news.  However, anyone is free to receive these if they wish.

Click here and complete your basic details to subscribe for free to this service.

Cheers

Shane

You will probably have been innundated with emails containing the details of the emergency budget, but here is a brief summary of the announcements:

CGT - Capital gains tax (CGT) will rise to 28% for high earners from midnight last night, but the rate for basic rate income tax payers will remain the same. CGT for most people would remain unchanged at 18%.

VAT - Osborne has raised VAT from 17.5% to 20% and will come in to effect on 4 January 2011, with exemptions for items such as food, kids clothes, and books. This change will generate an extra £13 billion in revenues for the year.

Corporation tax - British business has been given a boost by the introduction of four annual reductions in the rate of corporation tax which will eventually take the rate down to 24% from its current level of 28

Annuities - The Government has announced it will scrap the rule which creates an effective obligation to purchase an annuity by age 75 from April 2011. A consultation on the detail of this change would be launched shortly.

The UK economy - During the announcements, Chancellor George Osborne lowered the UK’s economic growth forecast for the next five years. He unveiled what he referred to as an unavoidable Budget. He said that economic growth this year would be 1.2%, in line with Darling’s previous forecasts of between 1% and 1.25%. However, in 2011, Osborne said growth would be 2.3%, which is much lower than Darling’s estimate of between 3% and 3.5%.

Bank Tax - The Chancellor has clamped down on the UK banking sector with a new tax on profits. This will raise £2 billion a year in the form of a tax on banks proportionate to the size of their balance sheets.

Other points:

• The increase in the personal allowance in the tax year 2011/12.
• The rise in entrepreneurs’ relief for capital gains tax from £2 million to £5 million.
• Possible changes to higher rate tax relief on pension contributions.

I hope this summary proves useful, and if you think any of these areas affect your financial planning and would like to speak to me, then please do not hesitate to contact me 01482 658989, or email me on shane@kirkellainvestments.co.uk

Shane Beardsley
Managing Director / Independent Financial Adviser

Earlier this week I mentioned the alignment of state pension ages for both men and women, however, there is more.

The State Pension age for both men and women is set to increase from 65 to 68 between 2024 and 2046, with each change phased in over two consecutive years in each decade.

• The first increase, from 65 to 66, will be phased in between April 2024 and 2026;
• the second, from 66 to 67, will be phased in between April 2034 and 2036;
• and the third, from 67 to 68, between April 2044 and 2046.

There is a State Pension Calculator on the Pension Service website if you want to calculate the exact date for you.

If you want to discuss this or any other matter, then please do not hesitate to contact us.

Shane Beardsley
Managing Director / Independent Financial Adviser

Pro-Am on Thursday 12th August 2010

I have recently become involved to some degree with Burstwick Country Golf, and they are currently in the process of devising some very exciting expansion plans, which is to include major improvements to the clubhouse, and member / visitor facilities.

Alan and David are busy planning for a Pro-Am which is to take place on Thursday the 12th August 2010, and I have said that I will spread the word and hopefully generate a few extra teams for the day. It will be a great opportunity to see the course in all its glory.

Entry will be £150 per Team, which will includes a bacon sandwich, coffee and hog roast meal to follow.

Competition Format:

Single Strokeplay for PGA Professionals
Team Play – Betterball Strokeplay, best score from 2 on each hole
Maximum handicap: Men – 24, Ladies – 34
Shots received: 3/4 (Handicap certificate required)

Prizes:

£1,500 first professional prize
£10,000 Hole In One prize
Over £2,500 worth of other prizes

Refreshments available all day

Cheques payable to Burstwick Country Golf.

Entry Forms to:
The Club Secretary, Burstwick Country Golf, Ellifoot Lane, Burstwick. HU12 9EF
Tel: 01964 670112
Email: info@burstwickcountrygolf.co.uk
Web: www.burstwickcountrygolf.co.uk

Here is a link to the booking form

Is your business adequately protected?

I am sure that many business owners protect their tangible assets such as their home with buildings and contents cover, and for their business, the buildings, machinery and vehicles will all be insured. But they may have partners, shareholders, or other key people with skills that are vital to the success of your business that they do NOT insure.

If they, or one of their key staff died, or was diagnosed with a critical illness, the financial impact on the business could be serious. That’s why planning to help protect the business from the financial consequences of losing its key people is vital.

What impacts could their death have on the business? Reduced sales or turnover? Difficulty in recruiting or training a replacement? Could the business afford to repay its creditors and keep trading? Could the business survive in what, for many businesses, is the harshest trading environment for many years?

Also just for a moment, consider what will happen to a business if a director, who is also a shareholder in the business, dies or is diagnosed with a critical illness?

• The business loses their experience and expertise
• What happens to their shares?
• Can the business or the remaining shareholders afford to buy their shares?
• Their shares might pass to someone who has no knowledge or interest in the business or that person might gain significant control over the direction of the company and make decisions which might not be in the best interests of the remaining directors or those still working for the company.

This is an area that is becoming very topical, and therefore if you, or any of your contacts believe that this is something they should review then please do pass on our details, email me on shane@kirkellainvestments.co.uk or give me a call on 01482 658989 to discuss in more depth.

Shane Beardsley
Managing Director / Independent Financial Adviser

From 6th April 2020, the State Pension age for women will be the same as it is for men, 65.

Women’s State Pension age will start to change gradually from 2010, but this will not affect women born on or before the 5th April 1950, who can still claim their State Pension at 60. Women born on or after 6 April 1955 will have a State Pension age of 65!

There is a State Pension Calculator on the Pension Service website if you want to calculate the exact date for you.

If you want to discuss this or any other matter, then please do not hesitate to contact us.

Shane Beardsley
Managing Director / Independent Financial Adviser

Not many people seem to know, but the government will increase the minimum retirement age from 50 to 55 for certain types of pension scheme including Personal and Stakeholder Pensions with effect from 6th April 2010.

As it stands now, should you have any qualifying pension schemes then you are able to access your tax free lump sum and / or pension income from aged 50, but from the 5th April 2010 you will have to be aged 55.

What impact will this have? Well, for example Mr Smith has just turned 50 and could in theory access his pension, but if he doesn’t do this before 5th April 2010 he will have to wait until he is 55, a potential delay of around 4 years.

Clearly there is a small window between now and the 5th April 2010 for people aged between just under 50 and 55 to take action, so if you would like a review of this or any other matter then please contact us.

As I have just explained in my last post, the 5th April 2009 will spend the end of tax year, and therefore if you are wanting to maximise your pension contributions for the year, you may want to get in touch VERY soon.

If you have a lump sum that you are willing to invest, you are actually able to benefit from the very generous levels of tax relief afforded to pension contributions.  For higher rate tax payers in particular it can make a VERY attractive investment opportunity with tax relief of up to 40%.

In most cases the level of basic rate tax relief is reclaimed on your behalf by the pension provider, so in order to invest a single premium of £10000, you need only write a cheque for £8000, and if applicable the difference between basic rate and higher rate tax, is claimed via your tax return.

Obviously the tax relief can equate to quite a substantial amount of money, and while investment returns, and rates of interest on deposit savings have been poor of late it can appear an attractive proposition, subject to personal circumstances and attitude to risk of course!

For more information we are available to discuss your personal situation in more depth.  Please contact us on 01482 658989 or fill in or contact form and we will be in contact shortly:

http://www.kirkellainvestments.co.uk/contact.asp

Shane Beardsley
Managing Director / Independent Financial Adviser
Kirk Ella Investments Ltd

As you may or may not be aware, the end of the tax year is looming and with it ends this years ISA allowance.

This, along with many others, are valuable allowances that should be utilised to maximise the tax efficiency of your savings and investments.

You are entitled to save £7200 each tax year into an ISA, either £7200 into effectively a stocks and shares ISA, or £3600 into a cash ISA and in addition, £3600 into a stocks and shares ISA. Either way, a husband and wife can effectively invest a combined total of £14400, and in fact, over the next 6 weeks it is possible to invest a total of £28800 as you will also be able to utilise the 2009/2010 allowance after the 6th April 2009.

Whilst interest on deposit savings is being affected dramatically by the cuts in interest rates, you may want to consider alternative investments. This of course depends entirely on your attitude to risk, which as Independent Financial Advisers here at Kirk Ella Investments Ltd we are able to spend time ascertaining the level of risk you as a client are willing to take.

If you would like to contact us to arrange a review, then please contact us on 01482 658989, or fill in our contact form here http://www.kirkellainvestments.co.uk/contact.asp

Shane Beardsley
Managing Director / Independent Financial Adviser