Some of you may not have heard the budget announcements yesterday, so here is a very brief summary of some of the highlights:

The personal allowance will be increased to £9,440 for those under age 65, this is all part of the plan to raise it to £10,000 which will be achieved from 2014/15, a year earlier than expected.

The reduction in the personal allowance for those with ‘adjusted net income’ over £100,000 is to continue, which means there will be no personal allowance remaining for individuals where their ‘adjusted net income’ exceeds £118,880 in the 2013/2014 tax year.

The basic rate of tax is and will remain at 20% however the band of income chargeable to tax at this rate is being reduced to £32,010. This means that the level at which the 40% tax band applies will also fall. The previous level was £42,475, but this will reduce to £41,450. Please note, this assumes entitlement to the full basic personal allowance.

Currently the 50% tax band applies where taxable income exceeds £150,000 but as already announced, this rate will fall to 45% in 2013/14.

The basic state pension will rise by 2.5% in April taking it to £110.15 per week, and the Government will introduce a single flat rate pension of £144 per week in 2016.

The main rate of corporation tax is 23% from 1st April 2013. The Chancellor announced in December that the rate from 1st April 2014, previously planned to be 22%, was to be reduced to 21%, the Chancellor has now announced that this will be reduced to 20% from 1 April 2015.

The CGT annual exemption will be £10,900 for 2013/14 and will be increased to £11,000 for 2014/15 and £11,100 for 2015/16.

The Government also confirmed its intention to freeze the inheritance tax nil rate band at £325,000 until April 2018.

From a pensions perspective, there were no reductions to the Annual Allowance and Lifetime Allowance.

26th March 2013 will be the date when capped income drawdown rates will rise from 100% to 120% of the value of an equivalent annuity.

The stocks and shares ISA limit will rise to £11,520 and the cash ISA limit will rise to £5,760 with effect from 6 April 2013

As ever, if you want to discuss this or any other points, then please give me a call.

Shane Beardsley
Managing Director / Independent Financial Adviser
shane@kirkellainvestments.co.uk

Yesterday, the Chancellor unveiled his Autumn Statement, and here is a brief summary of some of the changes being implemented.

Personal Taxation:

The personal allowance for 2013/14 for those aged under 65 will be increased from £8,105 to £9,440.

The reduction in the personal allowance for those with ‘adjusted net income’ over £100,000 will continue.

Where adjusted net income is expected to exceed £100,000 you should seriously consider reviewing your situation before 6 April 2013.

Adjusted net income is taxable income from all sources reduced by certain reliefs such as pension contributions. Consideration should be given as the whether these could be made to protect some or all of the personal allowance.

The current basic rate of tax is 20% and the band of income taxable at this rate is being reduced from £34,370 to £32,010 so that the threshold at which the higher rate of tax, 40%, applies will fall from £42,475 to £41,450.

The 50% band currently applies where taxable income exceeds £150,000 but as has already been announced, this rate will fall to 45% next year.

For 2014/15 and 2015/16 the increase in the higher rate threshold will be capped at 1%.

Pensions:

For tax year 2014/15 onwards:

- The annual allowance for pensions tax relieved savings will be reduced from £50,000 to £40,000. This comes only two years after Osborne slashed the allowance from £255,000 to £50,000.
- The standard lifetime allowance for pensions tax relieved savings will be reduced from £1.5 million to £1.25 million

Income Drawdown limits

The maximum income limit for capped drawdown is to be pushed back up to 120%. The Chancellor has announced that the Government will revert the capped drawdown limit from 100% back to 120% giving clients with these arrangements the option of increasing the income they take from the fund.

Individual Savings Accounts (ISAs)

From April 2013 the overall ISA savings limit will be uprated to £11,520.

Corporation tax rates

The main rate of corporation tax is 24% from 1 April 2012 and 23% from 1 April 2013. The Chancellor has announced that the rate from 1 April 2014, which was planned to be 22%, will be reduced by an additional 1% to 21%.

The small company rate will remain at 20%.

Capital Gains Tax

The current rate of CGT is 18% rising to 28% for people paying higher rates of tax. The rate for Entrepreneur’s Relief (ER) remains at 10% with a lifetime limit of £10m per individual.

The Chancellor announced that the exemption would be £11,000 for 2014/15 and £11,100 for 2015/16.

Inheritance Tax

The IHT nil rate band remains frozen at £325,000 until 5 April 2015 and will rise to £329,000 for 2015/16.

Solar turns up the heat on investments….
A solar photovoltaic (PV) system as an investment opportunity….

This isn’t an additional string to our bow, but I thought I would share some information following an interesting meeting I had last week with a local business that specialises in the specification, design and installation of renewable energy systems such as Solar PV and Heat Pumps etc.

It seems that the government will reward you as an electricity generator through the Feed-in-Tariff by paying you an annual rebate for 25 years – this is guaranteed, is index-linked and also tax-free!

One example he gave, by investing £7,000 in a system, you could receive £720 per annum or £16,806 in total representing a return of 13% with a payback of less than 10 years.

Quite a good return by any investors standards. furthermore, the value of your home should potentially increase as well, by an estimated 1-2%, so on a property valued at £300,000, that’s an immediate gain of £3-6,000.

However, you need to hurry as on 1 Aug 2012 the Feed-in-Tariff reduces – you will still receive £584 per annum and £10,244 in total (so still a good return) but not as good as before 1 Aug.

Installation takes around 3-4 days. For further information, contact Pure Renewables, a local and long-established company, on 01482 846005 or via email at info@purerenewables.co.uk.

I am only quoting the figures I was given, and accept no responsibility for their accuracy. If you decide to look into this then your particular circumstances will be taken into account.

I have never featured a mobile app in my blog before, but I felt that this particular app warranted a mention.

Packed with information and useful calculators, this is a must have app for business owners, and what’s more, it is free to download from the App Store.

I particularly like the tax tables and the tax calculators which include everything from Income Tax and Capital Gains Tax calculators, to Stamp Duty Purchase and Lease, and Company Car Benefit in Kind Calculators.

Search for “360 Accountants” on the App Store, or click here

This is something I have really wanted to get off the ground for quite some time now, and I made the decision this week to make a start, so I have decided to publicise the details of our Facebook page, Twitter account and my LinkedIn profile. Some people use one, and some people use all the above, so if you are interested in following any of the above, or joining my network of contacts then please feel free to follow the links provided below.

Going forward, I am planning to use the Facebook page to pick out some of the important articles I come across in the media that may be relevant to my clients, which will then in turn be automatically posted to my Twitter and LinkedIn profile.

I will still be using the blog on our website (soon to be new and improved), and these will be longer more tailored articles that I think will be if interest. I will also be continuing to send these monthly newsletters to maintain a regular contact to the clients that subscribe.

Facebook Page

Click here and click “like”, if for any reason the link doesnt open, just visit www.facebook.com and search for Kirk Ella Investments.

Twitter Account

http://www.twitter.com/kirkellainv

LinkedIn

Click here to visit the site. Please note, to view profiles on LinkedIn you need to have an account yourself. They are free to create, and open up plenty of networking opportunities with business people all over the region and the world.

May I start by wishing you a Happy New Year!!!!!

January is typically the month of “New Year’s Resolutions”, in most cases making them, and in some cases making and subsequently breaking them. Whether it is to go to gym more, lose weight, get fitter, stop smoking, stop drinking, or manage your time better to list but a few. However, one we hear a lot is “we must get our finances in order”, the sub-category to that may be just to do an annual review to find out what they have, and whether it is working for them, to review their life cover and critical illness cover, or just to get a handle on their investments. It is astonishing how many people we meet that have various investments and life policies all over the place and they genuinely have no idea exactly what they have or what they are for.

So, it may be late to make these resolutions now, but putting that to one side, if you or any of your contacts want to have a free review of your savings and investments, mortgage, or life and protection products then please do not hesitate to call or to give out our number.

This month I am having a bit of a “social media” month, in anticipation of our new website which should be ready to launch early next month.

“Word of Mouth”
The best form of advertising?

This is a phrase many of you will have heard coined on more than one occasion…”word of mouth is one of the best forms of advertising”. True?

Some of you reading this blog will already have been referred to me and my business by a friend, family member, or colleague! In fact, as a business we hardly do any advertising, and most of our new clients come to us as recommendations from other clients! Afterall are you more likely to use someone that has been recommended to you by someone who has experience of that persons work?

For the last 8 years I have been one of a group of local business people who meet regularly and get to know one anothers businesses, with a view to building a network of professional people that we can all comfortably refer people to that have expressed a requirement for a particular product or service! I for one would rather use an electrician that has been referred to me by a friend that has used that persons services, over picking up the yellow pages and putting a pin in the page!

I only mention this now, in case any of you reading this article are involved in a local business, or know of anyone that may benefit from meeting the other members of our group. If so, please drop me an email or give me a call to discuss.

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

According to a survey carried out by MGM Advantage, Pensioners that receive independent advice on their retirement fare considerably better than those who do not.

The study found that just 14% seek specific financial advice for their retirement despite finding clear benefits for those that do, and that pensioners that do not visit an IFA are 4 times more likely to be forced back into work, and twice as likely to be forced to downsize their property to fund retirement.

Therefore if you are one of those people that once retired, want to stay retired, or If you want to discuss this or any other matter please do not hesitate to contact us for a financial review.

Shane.

Blogs? … everybody seems to have one these days; some people have them to improve their search engine rankings, some people have them to entertain the regular visitors to their website, in fact everyone has a different reason for adding a blog to their website. To be honest, at this point I am not entirely certain why we have added one to our site apart from to open up the possibilities available to companies willing to learn new things.I suppose it helps that I am a Director of Kirk Ella Investments Ltd, but also a Director of EYE Web Solutions (www.eyewebsolutions.co.uk) web design agency aimed at businesses, and EYE Focused (www.eyefocused.co.uk), a web design agency aimed at Schools, Colleges and Universities. Blogs seem to be more and more popular to all manner of clients.

Anyway, whatever the reason, I will be attempting to post on a regular basis with news on our business, comments on industry news, in fact anything that relates to us as a business.

Shane.