How climate change can affect your pension?

Many are worried about climate change and Enable's experienced IFA's in Bishop's Stortford are concerned that the legally binding agreement struck by world leaders in Paris earlier this year, to dramatically reduce greenhouse gas emissions, may have serious implications for pensioners, invested in “carbon-intensive” companies.

Analysts say that more than three-quarters of the world’s known coal, oil and gas reserves will have to stay in the ground if the planet is to have any chance of meeting the target to limit global warming to between 1.5C and 2C.  Since fossil-fuel companies are valued on their reserves, leaving them in the ground is not best for profits and share prices. It is also likely that other heavy carbon producers such as energy providers, steel-makers and meat farmers will be affected by as hefty financial penalties.

But across the globe “carbon-intensive” companies are behaving as if it’s “business as usual”, when perhaps they should be telling investors some of the threats now facing them. This approach is completely untenable, say pension funds and law firms. “Business as usual is not an option for very carbon-intensive companies,” said Stephanie Maier, the head of responsible strategy and research at Aviva, who manage £267bn of investments. She also speaks for the Institutional Investors Group on Climate Change, a coalition of 120 financial institutions managing nearly £10trn of funds in nine countries. Perhaps we all need to reconsider what is going on behind the scenes and investigate big business preparations for a lower-carbon future.

Source: The Independent

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

More pension changes afoot

Enable's IFA's in Bishop's Stortford are here to help you to make the best of any changes to pensions and after years of speculation, it looks as if Chancellor George Osborne may  this year on Wednesday 16th March (date of the next budget) reduce higher-rate tax relief for pension contributions or maybe do away with it altogether.

At the moment, taxpayers earn tax relief on their pension contributions at their highest personal marginal rate of tax; basic-rate (20%) taxpayers, a £100 pension contribution costs just £80 after £20 of tax relief,  higher-rate (40%) taxpayers, a net £60 is needed to make a £100 contribution, with £40 in tax relief, additional-rate (45%) taxpayers, the net figure falls to £55, plus £45 in tax relief.

The speculation is that the Treasury want to end pension tax relief at the 20%, 40% and 45% rates, replacing it with a universal tax relief at a single, flat rate.  If there is change surely the bottom rate has to be higher than 20% and lower than 40%.  May have quoted 33% as the middle ground.  This would of course mean that 40% and 45% taxpayers will be worse off, as they will lose valuable tax relief. But if tax relief rises from 20% to, say, 33% it will benefit 20% taxpayers

If you're a basic-rate taxpayer or non-taxpayer, then it might make sense to sit await developments, maybe even delaying contributions but if you are a higher or additional rate payer you might want to bring contributions earlier. Enable's IFA’s can help you work it out.

Source: The Independent

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Over charging Ltd companies

Many in later life turn to property to support their retirement and Enable's IFA's in Bishop's Stortford know that diversification of your assets is always a good thing over time. Some have turned their letting investments into more of a business of late and there is some debate as to whether the market will stop lenders overcharging buy-to-let limited companies.

One specialist buy-to-let lender says some mainstream mortgage companies are over-charging borrowers who have become limited companies in order to minimise their liability as a result of Chancellor George Osborne’s tax changes. The commercial director of one loans company recently announced that its own Limited Company BTL mortgage would be priced at the same rate as the rest of its core range of mortgages.  They say it would not be right to expect borrowers to stump up additional fees just because they have taken the up until-now more unusual step of incorporating to support being a landlord.

Simon Bayley says "certain lenders are charging up to £100 extra for this product over their core range, when the risk is no different. [They’re] effectively asking landlords to pay any tax saving from using a limited liability company structure to the lender instead”  “The intermediary community is far too canny to go on selecting lenders who decide on this kind of pricing model. ... I am sure that market forces will dictate that this kind of overpricing will quickly disappear".

Source: Property Investor Today

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Working out Stamp Duty on Shared ownership

Stamp duty and the changes that occur with it may mean it is worth taking advice before you buy form experienced financial advisors like Enable’s IFAs in Bishop's Stortford. With Shared ownership you may well have to pay Stamp Duty Land Tax (SDLT) when you buy a property through a scheme run by an approved public body, like a housing association or a housing trust, a development corporation or the local housing authority.

You can also choose how you want to pay your SDLT, you can make a one-off payment based on the market value of the property or you can choose to pay your SDLT in stages. Market value election or a one off payment means you submit a return and pay at the residential rate and the value is worked out on the total market value of the property even if you’re only buying a share. HMRC give the example of if “You buy a 50% share of a property with a market value of £140,000.  You have to pay SDLT of £300 (0% on £125,000 and 2% on £15,000).You don’t have to pay any more after this, even if you buy a bigger share in the property at a later stage.

You make your first SDLT payment on the price you pay for the lease (the ‘lease premium’) if it’s above the threshold. You may have to pay extra SDLT if the total rent over the life the lease (known as the ‘net present value’) is more than £125,000. It is not simple but Enable’s IFAs in Bishop's Stortford can help you work it all out.

Source: Gov.UK

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

What does Leasehold mean?

If you are just starting off in the world of trying to buy a home, Enable’s experienced IFAs of Bishop's Stortford know getting to grips with all the terms can be a bit overwhelming. In England and Wales the vast majority of flats are owned through a leasehold, this includes everything from new-build properties, converted houses from 1960's, tower blocks, to Victorian conversions.

When you buy a leasehold property, what you are actually buying is a legal right (a lease) which gives you effective ownership of the property for a given period of time usually the time is days on the lease. The lease on your property may have been granted (to the original owner of the flat) for a period of 99 or 125 years. But the key question for any new leaseholder is, how much remains on the lease, as of right now?  No two leases are the same, so it's essential that you, or a solicitor on your behalf, read and understand the contents of your particular lease.

With a leasehold property, it's important to understand what you do & don’t own; you don’t own the plot of land the flat sits on, you don’t own the ‘fabric’ of the building, e.g. roof, external walls etc. What you do own however is the internal space, fittings, floor and walls. The Landlord or Freeholder owns and maintains the outer building & grounds on your behalf - a service you will almost certainly pay for via a service charge. If you are considering purchasing a leasehold Enable’s IFAs in Bishop's Stortford can help you think it through.

Source: Property Today

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

UK property set to top the agenda for investors in 2016

Getting the right balance of your assets is something Enable’s experienced IFAs in Bishops Stortford are concerned to achieve for their clients. According to predictions from real estate advisors Savills the income producing potential of various property asset classes is expected to be top of investors’ agendas in 2016.

The Savills report says that annual house price growth stood at just 3.9% at the end of October, with annual housing transactions appearing to have peaked at 1.2 million per year so the forecast for 2016 is 5% for average UK house prices. The mainstream market is of course more dependent on what happens to the cost of borrowing.  ‘Capacity exists for short term price growth if rate rises are delayed further, but rising interest rates will squeeze affordability, making house price growth dependent on earnings and the pace of economic growth,’ the report says.

It adds that attractive commuter towns will also continue to offer good medium term price growth on property, particularly where travel times are shortened by rail improvements and demand for private rented accommodation will continue to rise. The restriction in tax relief and additional 3% stamp duty charge for buy to let landlords may result in rising private rents and shift investor focus towards higher yielding sectors of the market, particularly key regional cities, it suggests. ‘Good quality refurbished office space in the UK’s top seven major cities will experience stronger than average rental growth, reaching levels recently seen for similar assets in London,’ says Mark Ridley, chief executive officer, Savills UK and Europe.

Source: Property Wire

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Insurance cover for the family

If you have a family or other dependents Enable’s IFAs are here to help you make sure you have the right protection or cover for yourself I you are the main breadwinner. If you are trying to work out how much cover you need the most common rule of thumb is for the cover to provide roughly 10 times the annual income of the highest earner till kids have finished full-time education

This is of course just a rule of thumb and you can decide for yourself what is best for you and your family but there are a few other things you might want to take into consideration as you try and make the decision. Any cover should aim to be able to pay off any outstanding debts especially the mortgage if you have a separate policy. It is a good idea to think through the immediate outgoings that your dependents may need to pay for without you some like to look at future spending you would have wanted to make, e.g., supporting your children through university.  There are also additional expenses that your untimely death may trigger i.e. funeral costs.

Ten times your income may seem like a lot of money but it is important to remember that inflation will mean the value of any payout could be a lot less in10 years' time.  Surviving dependents don't have to pay any income tax on this kind of insurance but it does count as part of your estate so if your total assets are above the inheritance tax (IHT) threshold, they will have to pay 40%. If you want to talk though the kind of protection your family might need Enable’s IFAs are here to help.

Source: Money Saving Expert

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE