B&B Wealth Management joint venture

Leading local accountancy firm launches joint venture
with Chartered Financial Planners

Bevan & Buckland have launched a joint venture with WPS Financial Group Ltd.

The new service, which gives clients expert advice on personal financial affairs, will replace the financial planning provision that was previously provided in house by Bevan & Buckland.

WPS is a firm of Chartered Financial Planners with more than £315m under management.

“The world of financial planning is becoming increasingly complex and it is important to the firm that our clients receive excellent advice on their personal financial affairs,” said Cuan O’Shea, Bevan & Buckland Managing Partner.

“To ensure we deliver on this promise we have set up a joint venture with a local firm of Independent Financial Advisors to ensure that our clients receive the highest quality advice.”

The services will be provided by Jon Francis who has 25 years’ experience and Paul Williamson who has 20 years’ experience working with clients across South West Wales.

“We are delighted to launch this joint venture with Bevan & Buckland,” said Jon Francis, Managing Director of WPS Financial Group Ltd.

“It is testament to the corporate strength and stature that such a prestigious accountancy practice as Bevan & Buckland should elect to run a joint venture with us and join our Group of IFA businesses.

“As Chartered Financial Advisers managing more than £315m for clients from Pembroke to London, our business is ideally located and qualified to provide the highest level of advice and service for B&B clients.”

Added Jon: “We now have four businesses operating under our banner, and Bevan & Buckland is a very welcome addition to our Group which is growing at a well-managed and controlled rate.”

The joint venture will be run through a new company called Bevan & Buckland Wealth Management Ltd.

For more information please call 01792 410103 or email: Jon Francis at jon@bb-wealth.co.uk or Paul Williamson at paul@bb-wealth.co.uk

@bevanbuckland @wpsfg

New National Savings Bonds Announced

New National Savings Bonds Announced

The Chancellor has confirmed that National Savings & Investments (NS&I) will offer two fixed rate deposit bonds from next month for anyone over the age of 65.

The intention to offer these bonds was announced earlier this year, but to date no further details were available.  George Osborne has now announced that there will be two bonds available, for terms of 1 or 3 years, and a maximum investment of £10,000 per person, per bond.  (The minimum investment is £500 per bond).  This therefore gives the opportunity for a couple to invest up to £40,000 in total.

The interest rates are highly competitive against the market at present, offering 2.80% over 1-year and 4.00% over 3-years.  Both rates are quoted gross and the interest will be paid with Basic Rate tax (of 20%) deducted at source.  This means that a Basic Rate taxpayer would receive 2.24% and 3.20% over 1 and 3 years respectively, and a Higher Rate taxpayer the equivalent of 1.68% and 2.4%.  Non taxpayers or those liable to the new 0% rate (effective from April 2015) will be able to reclaim the tax paid.

In the absence of National Savings Certificates (no new issues of which are currently available) these new bonds offer a good returning the current market, without having to tie your money up for a prolonged period.  Cash returns remain poor, and our estimate is that they are likely to remain so for the foreseeable future.

No investment is without risk, not even cash deposits. Other investment options are available which could potentially generate higher returns, although all of these will carry some degree of risk.  The important thing is to ensure you understand what the risks are before investing, as these may not always be obvious.

If you either need or want to generate a higher return than these bonds offer, or you have a larger lump sum to consider, we can help you find the best way of investing whilst minimising any risk.  For a free initial consultation in any of our offices please contact us using the details below.

 

Gareth Tregidon

Financial Planning Manager

Gareth Tregidon is manager of Bevan & Buckland’s Financial Planning Department, which operates from the firm’s Swansea, Pembroke and Haverfordwest offices. The department provides fee-based advice to personal and business clients, both from within the firm and elsewhere.

Gareth is a Certified Financial Planner^CM and an accredited Later Life Adviser with the Society of Later Life Advisers (SOLLA).  He is former Chairman of the Institute of Financial Planning in South Wales, and an assessor for the internationally recognised Certified Financial Planner^CM licence. 

Bevan & Buckland Chartered Accountants Swansea Tel: 01792 410100

Bevan & Buckland Chartered Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Chartered Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Chartered Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Chartered Accountants St David’s Tel: 01437 720352

IHT receipts rose by £3.4 billion last year

 HMRC reports Inheritance Tax receipts last year rose to £3.4 billion

HMRC has today (Thursday 31^st July 2014) reported that the total amount of Inheritance Tax levied in the 2013/14 Tax Year rose to around £3.4 billion.  This represents an increase of 8.6% on 2012/13, and around 17% since 2011/12, writes Gareth Tregidon, Financial Planning Manager at Swansea-based accountants and financial planners, Bevan & Buckland.

Last week a study published by unbiased.co.uk suggested that as much as £530 million is set to be ‘wasted’ in Inheritance Tax this year by individuals not placing life policies under trust.   According to the website this figure has risen by £58 million compared to the previous year.  However the latest announcement by HMRC suggests the majority of the tax arose from properties, household savings and securities.

The Nil Rate Band, the amount that can be passed on free of the tax, has been frozen at £325,000 since April 2009. With the economy continuing to recover, and values of properties, investments and other assets increasing, it seems certain that the number of estate paying IHT will continue to increase.

Separate research conducted by Close Brothers suggests that less than half of those liable to the tax know the correct threshold and potential liability, meaning that many people may not even realise their estate could be affected.

There are some relatively simple steps individuals can take to make sure that assets end up with the people you intend after your days, and often this can have the added benefit of reducing any tax due as well.  It is particularly important to check any insurance policies or investments that make a payment on death, as writing these benefits under a trust can be a simple, low cost way of reducing the tax your beneficiaries would have to pay.

Former Chancellor of the Exchequer Roy Jenkins is famously quoted as having said, “Inheritance tax is a voluntary levy, paid by those who distrust their heirs more than they dislike the Inland Revenue.”   As you would expect from one of South Wales’ leading tax and financial planning firms, we have the experience and expertise to help you assess if anything needs to be done, and then to help you take the necessary actions.  We offer a free, no obligation initial meeting, so why not give us a call today to see how much you could save.

Gareth Tregidon

Financial Planning | Bevan Buckland Blog

July 2014

Gareth Tregidon is manager of Bevan & Buckland’s Financial Planning Department, which operates from the firm’s Swansea, Pembroke and Haverfordwest offices. The department provides fee-based advice to personal and business clients, both from within the firm and elsewhere.

Gareth is a Certified Financial Planner^CM and an accredited Later Life Adviser with the Society of Later Life Advisers (SOLLA).  He is former Chairman of the Institute of Financial Planning in South Wales, and an assessor for the internationally recognised Certified Financial Planner^CM licence. 

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

The ISA just got NISA

The Launch Of The NISA

Following the announcements in this year’s Budget, the 1^st July 2014 sees the launch of the latest version of tax-efficient savings vehicles, the New Individual Savings Account (or NISA), writes Gareth Tregidon, Financial Planning Manager at Bevan & Buckland Chartered Accountants.

As a way of encouraging both savings and investment the Conservative Government launched Personal Equity Plans (PEPs) and Tax Exempt Special Savings Accounts (TESSAs) in 1990.  These were “simplified” in 1999 by the Labour administration, which then replaced PEPs and TESSAs with a single new product – the ISA.   Within this new plan we had a distinction between cash deposits and investments, and it also introduced the “Mini” and “Maxi” ISA.  Whilst the “Mini” and “Maxi” terminology disappeared in 2008, many people still refer to ISAs in this way as it is easier to understand the various investment limits.

Prior to 1^st July 2014 we have had an overall ISA investment limit, which applies to the Tax Year and is updated annually.  For 2014-2015 this was £11,880, increased from £11,520 in 2013-2014.  Up to half of this could be invested in a Cash ISA (£5,940), with the balance available for use in an investment ISA.  So for example if you invested £3,000 in a Cash ISA, you could then invest up to £8,880 in an investment ISA.  Thankfully these different limits and distinctions are now about to disappear with the launch of the NISA.

With effect from 1^st July 2014 this changes to a single overall investment limit of £15,000.  This can be all in a Cash ISA, all in an Investment ISA, or any combination of the two in whatever proportions you want.

Another important change is the ability to alter the way you invest in the future.

Until now, if you invested in cash you could switch at a later date into investments and still retain the ISA status.  However, you could not go from investment to cash.  So if you had an Investment ISA that you wanted to change, your only option was to cash it in, so losing the ISA status.  From 1^st July 2014 this has changed, and you can now transfer from investment to cash, or vice versa, whenever you wish.

These changes suggest that providers will need to develop more flexible ISA products in the future if they want to attract and then retain your money for longer periods.  Some have started to do this already, however we expect to see more launching in the next few months.

Over the last few years fund management groups have also been changing the way they charge for their funds.  Whereas you previously had a single fund charging structure, most now have multiple ones depending upon the company you use to access the funds.  Whilst the vast majority of these are now significantly cheaper than before, finding the best fund/product combination for your requirements has increased the need for advice, whether online or by using an adviser.

If you have an investment portfolio and would like to know more about taking advantage of these changes, or lower cost ways to access funds, contact us for a free, no obligation initial discussion.

 

Gareth Tregidon CFP^CM

Bevan & Buckland

July 2014

Gareth Tregidon is manager of Bevan & Buckland’s Financial Planning Department, which operates from the firm’s Swansea, Pembroke and Haverfordwest offices. The department provides fee-based advice to personal and business clients, both from within the firm and elsewhere.

Gareth is a Certified Financial Planner^CM and an accredited Later Life Adviser with the Society of Later Life Advisers (SOLLA).  He is former Chairman of the Institute of Financial Planning in South Wales, and an assessor for the internationally recognised Certified Financial Planner^CM licence. 

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

Bevan & Buckland Accountants Cardiff Tel: 02920 459960

 Bevan & Buckland Accountants Newton Abbot Tel: 01626 361484

Paying too much for your bank investments?

Barclays Announces New Investment Charging Structure – And It’s Not Cheap!

As you may have seen, the world of financial services is changing from the end of this year, writes Gareth Tregidon, Financial Planning Manager at Bevan & Buckland.

The Financial Services Authority (FSA) is introducing legislation known as the “Retail Distribution Review”, or RDR.  Further details on what RDR is, and in particular how it may affect anyone receiving financial advice in the future, will be given in a short series of articles starting here shortly.

In the meantime, in response to the RDR Barclays has now announced details of what it will charge investment clients from January 2013.

If you use the bank’s discretionary management service, then your fees will be 1.25% per annum on the first £5m of investments.  In addition, percentage-based transactional charges will also continue to apply on purchases and sales.  The minimum investment for this service is £3m, meaning that annual fees will be at least £37,500 per year.

By comparison, most of the discretionary fund managers we work with typically charge 0.9%-1.2% per annum on the first £1m including all costs, falling in stages thereafter as the amount held increases.  The minimum investment starts at £200,000, and there is no minimum annual fee.

The differential on other types of investment management is even more pronounced.

Where you do not want or do not qualify for their discretionary management service (for example, where the amount invested is under £3m) the bank will levy an initial charge equivalent to 2% of the amount invested. This will apply on the first £250,000, dropping to 1% thereafter.  So, in theory if you invested £249,000 the charge would be £4,980, but if you invested £251,000 the charge would be £2,510!  The fees for ongoing management will be 0.75% per annum on the first £1m, once again falling in stages thereafter.

This again does not compare favourably with other services.

For example, like many firms of independent financial planners we agree any initial fee with clients in advance, usually as a fixed sum rather than a percentage of the amount to be invested.  This will be based on the amount of work involved, not how much you have to invest.  In the vast majority of cases it is significantly cheaper than working on a percentage-basis, particularly on larger sums.

So the moral of this story is that if you have an investment portfolio with Barclays, or indeed any of the other High Street banks, take a close look at the charges you are paying.

If you are unsure what you are paying or whether this represents good value, and would welcome an independent view, please do not hesitate to contact me. All initial discussions are offered free of charge and without obligation, and it could save you a fortune in fees!

Gareth Tregidon

 

Gareth Tregidon is manager of Bevan & Buckland’s Financial Planning Department, which operates from the firm’s Swansea, Pembroke and Haverfordwest offices. The department provides fee-based advice to personal and business clients, both from within the firm and elsewhere.

As well as having over 25 years’ experience in the provision of financial advice, Gareth is a Certified Financial Planner^CM and an accredited Later Life Adviser with the Society of Later Life Advisers (SOLLA).  He is former Chairman of the Institute of Financial Planning in South Wales, and an assessor for the internationally recognised Certified Financial Planner^CM licence. 

http://www.bevanbuckland.co.uk/services/financial-planning

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383