Predictions for 2020? What Could the Election Result Mean for Your Financial planning?

Lloyd French of Delaunay Wealth Management offers you some informed speculation on what the new year could have in store for us from a financial planning point of view.

It’s a new year and, we hope, an exciting new decade full of possibilities. As an experienced financial planning specialist, I hope that 2020 brings you and your family everything you wish for, not least, of course, your financial goals.

Welcome to the New Year

January is a new start and many of us are making commitments for 2020. Have you made any yet?  It’s most certainly the time to make plans and in our opinion, a good opportunity for some positive financial resolve and purpose. Resolutions, in other words.  And, crucially, to commit and act on them without delay.  Why?  Because time is short.

The tax return deadline of 31st January will be upon us very soon, swiftly followed by the tax year end on 5th April.  So, now is the right moment to review your position with a financial advisor.  Whilst we all pay tax to fund our public services and are happy to do so, a specialist could help you to reduce your tax burden, as well as offering advice on tax-efficient investments.

(We’d be happy to help, by the way, so feel free to contact us on 0345 505 3500).

And There’s Been an Election

There’s something else to bear in mind.  The election results.

We also have a newly invigorated and substantially reinforced (in terms of MPs) Conservative government.  Through a return to power with 360 seats out of 600, our UK government now has its biggest parliamentary majority since the late 1980s, indeed since Margaret Thatcher was re-elected in 1987.

Whilst remaining strictly apolitical, here at Delaunay Wealth this strength in numbers could deliver greater stability and more certainty over the next five years.  Uncertainty is at an end, at least for now.  A government with a substantial majority has leverage, whatever side they’re on.

Two things we know, then: We will be leaving the European Union – without a doubt.  Getting “Brexit done”, in other words.  And, there’s going to be a Budget on March 11th. This will be Sajid Javid’s first as Chancellor and I’m sure he will want to make an impact.  What’s going to be in the Budget?  I don’t know, I’m afraid.  Nobody does, but I know what I would like to see raised;  or at least presented to the House for legislation discussion and amendment.

Strictly in my opinion, of course, a few pieces existing legislation could do with re-examining.

Such as?

Pensions Taper Allowance

Introduced in 2016, in a nutshell, the taper allowance appears to deliver a degree of disincentive for higher earners looking to contribute to a pension.

It works like this:

Normally, your pension contributions can reduce your taxable income. Why?  Because the government actively encourages people to save for their later years through tax relief.  Make payments into a pension scheme and your reward is a lower tax bill through an annual allowance.  More cash in your bank.

However, this annual allowance gradually reduces the tax allowance for those on higher incomes.  If you earn more than £150,000 your pension allowance will be decreased below £40,000.  Earn more than £210,000 and the annual allowance sky dives to £10,000 a year.

This retrospective pension charge has affected NHS doctors and other workers in key, high profile occupations, not least because anecdotally, they’re turning down work or refusing overtime. Fewer essential expert resources for us, and bad news for them, as earning more means losing their pension tax relief allowance.

The thing is, the government pledged to have a look at this situation within its first 30 days in power and that’s well, now, really.

The other issue I’m expecting to see in the Chancellor’s March 11th Budget is:

Capital Gains Tax, especially Entrepreneur’s Relief

A review of Entrepreneur’s Relief was promised in the Conservatives’ election manifesto, so it could be a shoo-in on Budget day.  Along with a firm commitment not to raise Income Tax, VAT or National Insurance – all good – was a clear indication that this form of tax relief will be reformed, although probably not scrapped entirely.

So, could this be the time to remind you to speak to financial planning expert right now if you’re considering selling your business?  There could be, repeat could be, some tax changes coming our way.

Introduced in 2008, Entrepreneurs’ Relief enables a business owner potentially to qualify for special CGT relief if they sell shares within their business.  You would qualify for this as a sole trader selling part or all of the business and currently, entrepreneurs pay a preferential 10% on the first £10m of gains.  This is worth a lot of money, of course.  Bear in mind, too, that this relief also applies even if you are a higher rate taxpayer.

Any gains above £10m are taxed at the full rate of 20%.

Changes in 2018/2019 tightened up the rules of qualification and the length of time shares needed to be held, but there could be further changes on the way. Maybe even a doubling down on the rules.  Of course, this could take some time (there is the small matter of leaving the EU after all), but if you’re a business owner, I’d advise you to seek advice sooner rather than later.

In my opinion, Capital Gains Tax is a complicated subject in general, so anything that streamlines these tax issues can only be good.  I, for one am intrigued to see what the Chancellor plans for us.

None of us has a crystal ball but one thing we do know:  the government has a lot to do.  As do we all!

Has this article raised questions in your mind?  Don’t sit there wondering, here at Delaunay Wealth we’d be very pleased to hear from you.

How to Make the Most of Your Tax Efficient Investment Allowances

Lloyd French of Delaunay Wealth Management offers timely, user-friendly “use it or lose it” advice to investors keen to maximise their investments into tax efficient savings.

Are you ready for the end of January filing deadline and the end of the tax year in 2020?

As a financial planning specialist, every day’s a school day.

I spend a great deal of time keeping up to speed with all the legislative changes and developments affecting pensions, investments and tax. In recent years, there have been several of them.

These days, it’s harder to make tax efficient investments than it used to be. Quite a lot harder, in my opinion.

A rather bold statement perhaps, but it seems that the government is after your money, and increasingly so.  We all pay tax and it’s our civic duty to do so, of course.  Our taxes fund the health service, education, defence, public order services and many other things besides.   However, as an investor, you’ll most likely want to do everything possible to reduce the amount you pay to HMRC. The good news is that with robust financial advice, you can do this legitimately.

Act soon.  Even better, act now.

Time is marching on.  The 31st January self-assessment deadline is looming.  Before you can even blink the 5th April tax year end will be upon us.  Would you prefer to pay less tax through maximising your tax efficient investment allowances?  Well, of course.

The bad news is that if you don’t utilise your tax allowances, you may lose them. In many cases you can’t carry them over to the next tax year. The good news is that this blog will explain how it all works in clear, jargon-free language.

By the way, Delaunay Wealth Management can offer advice on both mainstream and more sophisticated investments, so do take advantage of our expertise.  Get in touch through this website or on 0345 505 3500.

What are Tax Efficient Investments?

In brief, when we think of “tax efficient investments”, we’re referring to investment opportunities through which you receive government-approved tax benefits.  You could say that a financial decision is tax efficient if you pay less tax than an alternative financial structure that achieves the same end.

The following are worth knowing about.

1. ISAs, or Individual Savings Accounts

Generally, you can invest up to £20,000 in an ISA; they’re a form of tax-free savings.  For the risk averse, a cash ISA is a good idea for a possible short-term gain.

However, as a financial planning specialist, my expertise is in Stocks and Shares ISAs (although you can combine this with a cash ISA).  These tend to be risky, but you could see a potentially higher return over a longer-term period with a well-balanced portfolio of stocks and shares investments.

There’s no income or capital gains tax to pay on the profits from share price increases, nor on interest earned on bonds or dividend income.  You keep it all.

2. Pensions Allowances

An often-complex subject, and in our view, definitely worth taking expert advice on (and certainly if you’re a higher earner), not least because the UK government appears actively to be discouraging pensions for this income bracket

However, here are the headlines:

When you save into a pension, the government rewards you in the form of tax relief.  In other words, you pay less tax.  Although there are exceptions, everyone has a pension annual allowance, set either by the lower rate of £40,000 or your qualifying income. In other words, your income and tax band can affect the amount you contribute to a pension and the tax relief you can claim.

Let’s touch on those aforementioned exceptions: If you’re a high earner and your annual income is more than £150,000, the tax relief you can get on contributions is limited to a reduced annual allowance.

This is called a taper allowance and it decreases proportionally according to your earnings. As an example, for every £2 of adjusted income over £150,000, your allowance will go down by £1, with the minimum tapered annual allowance being £10,000.

Also, be aware that in the case of pension tax relief you can carry forward any unused allowances from the past three tax years in certain circumstances.

Finally, anyone can make contributions of up to £3,600 per year into a pension, receiving basic rate income tax relief, currently at 20%.  This also applies to children, so making these types of investments on behalf of your offspring or your grandchildren makes these  personal pension schemes well worth considering.

3. Capital Gains Tax Allowance

You will pay Capital Gains Tax (CGT) on the profits you make when you sell or transfer certain assets. For higher rate taxpayers, the amount you pay is 28% on your gains from residential property, or 20% on gains from other chargeable assets. There’s a tax-free CGT allowance of £12,000.

Again, this is a “use it or lose it” situation.  You can’t carry over this allowance.  Nevertheless, consider the following:

  • You may be able to split your sales of shares over two or more tax years, thus reducing your tax burden. This way you would take advantage of more than one year’s CGT allowances.
  • You could offset losses against gains to see if any allowances can be used.
  • Transferring income producing assets to a lower earning or non-tax paying spouse or partner could reduce your CGT tax bill.

 

4. High Risk, High Reward?

If you have been, or will be able to maximise your annual allowances on your ISA and/or through  pensions investments, or you’re after additional ways to mitigate tax, the following may be of interest.

There are special tax-efficient investments which provide funding to small businesses,  and through investing in these you can reclaim a proportion of the income tax you have previously paid and in some circumstances defer CGT.

However, in our opinion, they’re risky.  Sometimes very risky.

We can’t say this strongly enough: They should not under any circumstances be considered without taking professional advice.

For example:

  • A Venture Capital Trust invests in small, start-up companies whose shares are traded on the stock market. Naturally, not all of these fledgling enterprises are going to succeed, so you could make substantial losses.
  • An Enterprise Investment Scheme offers several robust tax incentives for higher rate taxpayers willing to invest in small, unquoted companies.
  • A Seed Enterprise Investment Scheme downsizes even further. Investing in even smaller start-up companies than those in the EIS, is simultaneously high-risk and outstandingly tax efficient.  Or, it can be.

A word of caution. Again. Do take qualified advice before considering any of the above schemes.

So, there you have it.  A fairly high-level, whistle-stop guide to making the most of your tax-efficient investment allowances.  On a personal note, working with our clients to help them maximise their investments and legally minimise their tax burden is the result of several years’ experience.  It’s highly satisfying knowing how different taxes interact and how best to optimise reliefs and allowances on behalf of my clients.

In summary, it goes without saying that paying tax is our duty as responsible citizens. We all contribute to a civilised society, and we’re happy to do so.  Nevertheless, I’d rather you kept more of your hard-earned money when it’s possible to do so.

Use it or lose it, so get in touch as soon as you can.

Meet Lloyd French, MD of Delaunay Wealth

In this blog we’d like to shine the spotlight on Delaunay’s Managing Director, Lloyd French.

Lloyd is the driving force and ‘face’ of the firm, and as such we wanted to find out more about him, the business and his plans for the future.

Tell us a little bit about how Delaunay started out and how it’s developed as a business since the early days –

Having spent 15 years as an employed financial adviser I was made redundant at the end of 2011 and felt that it was a good time to set up my own practice as I had many loyal clients that I had worked with for years and a good network of accountants and solicitors regularly referring me work so I felt positive it would be successful. In the past seven years the business has developed very well as we have grown the number of clients that have joined our Wealth Management Service by significantly and increased our Assets Under Management by £40m. Most of these new clients have been referred to us by other professional advisers such as Accountants and Solicitors but we are also lucky enough that our existing clients regularly refer us to their family, friends and work colleagues as well.

Where does the name Delaunay come from? –

“The Delaunay” was the name of the restaurant I had the first breakfast with my team having decided to set the business up. We were throwing potential business names in the hat and I suggested the name of the restaurant, Delaunay, as I liked the name. Several meetings later with my team and marketing specialists it was shortlisted and when we googled the name (to check it wasn’t an offensive French word) to see what it meant and it turned out it’s a term used in aviation which in layman’s terms means triangulation and maximising angles, it was as if it was meant to be and a marketing persons dream so we went with it hence triangles feature in our logo and marketing material as well as maximising angles in our financial planning strategies.

Tell us more about your background, motivations and ambitions –

For over 20 years I’ve specialised in helping people solve their investment and pension problems.

I use my personal in-depth experience within the financial service sectors to offer clear, invaluable guidance and proven techniques to successfully support clients needing step-by-step advice around financial planning, tax efficient investing and the management of their underlying assets.

I’m proud of what’s been achieved during my career to date as well as the success of my company to date.

Years of positive customer feedback are testament to the passion I have for putting my clients first and working collaboratively and transparently with them to achieve positive financial outcomes and their long-term commitment to our partnership.

I am going to build the business’ passive ongoing fee income to £1,000,000 per annum within the next 5 years by attracting and retaining clients. Our firm’s ethos, systems, support team and skills are complimentary to attracting and retaining clients who have a minimum of £500k of liquid investable assets.

My goal is to provide our clients with a Financial Planning advisory service that enables them to receive financial leadership, creativity and trust. It’s important to me that it’s an enjoyable process for our clients, but also for me as well.

We purposely keep our initial fees low, when compared to the marketplace, for investors who have more than £100k to invest, in that they are capped at £3k.

This is because we prefer to be incentivised in building and retaining long term relationships with our clients, rather than maximising initial earnings. In many cases the initial fee we charge will not cover the time cost or advice risk associated with implementing their investment plan.

Our business model is only successful if we manage to deliver a service that ensures our clients are happy to stay with us for the long term, as clients can leave at any time should they wish.

First and foremost we are financial planners and not investment advisers. We offer a fully audited and holistic financial planning service.

What has been the biggest challenge for the firm so far? –

Preparing for and going through the application process of becoming Directly Authorised with the FCA

What do you feel is the biggest strength of the company? –

Aligning our interests with clients by encouraging long term relationships by capping our initial adviser fees and charging an annual adviser fee. Working alongside our clients other professional advisers

Give us an idea of your “typical” client, if that even exists –

Business owners, Entrepreneurs, High Net worth/wealthy individuals, Trusts, Age 50 – 75, Income £150k per annum plus, Investable assets of £500k plus

Where would you like to see Delaunay in 5 years’ time? –

I am going to build the business’ passive ongoing fee income to £1,000,000 per annum within the next 5 years by attracting and retaining clients. Our firm’s ethos, systems, support team and skills are complimentary to attracting and retaining clients who have a minimum of £500k of liquid investable assets.

October 2019 Newsletter

Welcome to our October Newsletter.

In the lead up to the Brexit deadline, we share a range of useful articles and resources to help you manage and plan your personal finances, to include:

  • 25 Brexit need-to-knows
  • Cashflow modelling – an overview
  • Children’s savings accounts
  • Checklist – preparing for retirement

Did you know that we offer a health check of your existing financial plans? There are many factors directly and indirectly influencing your personal finance options, and it’s good practice to review your financial health – much like your physical health – on a regular basis. Why not contact us today to arrange yours?

Read the full newsletter here.

* Not all areas of estate planning or tax planning are regulated by the Financial Conduct Authority. Tax treatment depends on individual circumstances. Both your circumstances and tax rules may be subject to change in the future.

Inheritance Tax – Property Business Relief

Investor Profile:

• Individuals seeking an investment qualifying for Business Property Relief after two years.

• Ideally suited to those with a life expectancy of less than seven years.

• Looking for the estate to make Inheritance Tax savings after a relatively short period and achieving modest capital growth or income for the duration of the investment.

• Individuals with the appropriate investment risk profile, knowledge and experience of complex investment structures.

Inheritance Tax (IHT) is levied on a person’s estate when they die, and certain gifts made during an individual’s lifetime.

At present, the first £325,000 of an individual’s estate is taxed at 0% this is referred to as the nil rate band and is effectively tax-free. The excess estate over the nil rate band is taxed at 40% on death and chargeable lifetime transfers are taxed at 20%.

For the excess value of an individual’s estate beyond the nil rate band there are various methods of mitigating IHT liability. Generally these make use of the personal allowances and exemptions available and the use of Will and trust planning, and more recently the use of residence nil rate band where applicable.

In addition to these areas of planning, Business Property Relief (BPR) introduced in 1976, was designed to allow family businesses to be passed down through the generations unhindered by inheritance tax. Shares in BPR qualifying companies are deemed to be exempt from inheritance tax if they are held for just two years and at the time of death. This relief is now used widely by investment managers in products that can complement other estate planning solutions such as trusts and gifts.

BPR applies to relevant business assets such the outright ownership of a business or an interest in a business e.g. a partnership, securities in a company which is unquoted and which gave the transferor control of the company immediately before the transfer, or shares in unlisted companies or those traded on the Alternative Investment Market.
To qualify for business property relief, the relevant business property must have been held by the transferor for two years immediately prior to the transfer. If the transferor dies within the two years following the purchase of the property then the property will not qualify for BPR and IHT will become due on the value of the property at the date of death.

There are various schemes which aim to utilise BPR. Typically these schemes offer the investor the opportunity to invest funds into a corporate or partnership structure which will in turn deploy the funds into a qualifying trade or make investments into qualifying unlisted companies with the aim of the investor’s holding qualifying for BPR after the two year initial period.
The investment strategy of these schemes tends to focus on capital preservation rather than high returns which would bring extra levels of risk in order to maintain the investor’s level of capital through the minimum holding period.

An example of how BPR could be utilised is as follows:

An individual aged 75 years has total assets including main residence, investments and savings of £825,000 and wants to consider ways of mitigating his estate’s liability to IHT. Of the total assets there is an amount of £200,000 which is liquid and available for investment.

The table below shows the potential IHT liability reduction available through using these funds to make a BPR investment:

You can download the PDF here.

This summary sheet is purely for illustration purposes and does not constitute an invitation to participate. Any illustrations are not conclusive and do not cover many aspects of these structures. Under no circumstances should an individual consider this a recommendation, nor should they use this summary as an indication as to the potential for participation. The value of investments may fall as well as rise. You may receive back less than the original investment. Any decision to participate should be made with the help of appropriate tax advice.

Relevant Life Policy

In July’s blog post we looked at strategies business owners can implement to protect their business from loss of a key person shareholder.

Today we are going to explore Relevant Life policies which are a lesser-known life policy.

What is a Relevant Life plan?

• An individual Death In Service life assurance policy available for employees of the company which may include directors
• Your business pays regular premiums based on the level of cover
• If the person covered dies or is diagnosed with a terminal illness whilst in employment during the term, the plan pays a fixed, one-off lump sum
• The plan is designed to meet certain legislative requirements that mean your premiums, benefits and options should be treated tax efficiently
Who can take out a Relevant Life Plan?
• To be eligible for a Relevant Life Plan, the person to be covered must be an employee of the business, which can include company directors who are salaried. Unfortunately, Relevant Life Plans are not available for sole traders, equity partners of a partnership or equity members of a Limited Liability Partnership.
• It’s a Single Life Policy, which means each plan covers one person. There’s no option to include joint cover in the same policy.

How a Relevant Life policy can cut company costs

Relevant life graphic

* Assume that corporation tax relief is 20% and had been granted under the ‘wholly and exclusively’ rules. In both cases we’ve assumed a payment of £1,000 each year for the life cover on an employee who’s paying income tax at 40% and employee’s National Insurance at 2% on the top end income. We’ve also assumed that the employer is paying corporation tax at the small profits rate of 20% and will pay the employer’s National Insurance at the contracted-in rate of 13.8%.

This summary sheet is purely for illustration purposes and does not constitute an invitation to participate. Any illustrations are not conclusive and do not cover many aspects of these structures. Under no circumstances should an individual consider this a recommendation, nor should they use this summary as an indication as to the potential for participation. The value of investments may fall as well as rise. You may receive back less than the original investment. Any decision to participate should be made with the help of appropriate tax advice.

You can also download this fact sheet as a PDF.

What can Delaunay Wealth Management do?

  • Advise you on the most appropriate policy to be fully underwritten
  • Work with your tax advisors to undertake a business valuation for these purposes
  • Ensure the Business Risk Plan is regularly updated to reflect the value of the business
  • Introduce you to a legal firm experienced in drafting the documents to go with such a transaction

Contact us for more information
T: +44 (0)345 50 53 500 E: mail@delaunaywealth.com

Managing Risks within your Business

How would your business cope with the loss of a key person shareholder?

The basics of business risk management and protection

Legal and General tell us there is a £1.1 trillion business protection gap and this is one of the major potential areas for concern for owner-managed business (OMBs). Managing all the risks and fully protecting a business is often thought to be lengthy and complicated. But actually, the principles are similar to any other type of risk management.

Clearly there are many business risks but these are the main ones to consider:

  • The loss of key individuals having a serious impact on your profits
  • Covering all of your business borrowings
  • Succession planning or the death or incapacity of a business partner

A business protection strategy could help a business continue in the event of a key person, partner or director falling terminally or critically ill or dying.

 

What is Key Person Protection?

It’s simply a company insuring itself against the financial consequences it may suffer as a result of the death (or critical illness, if chosen) of a key team member. Key people are the individuals whose skill, knowledge, experience or leadership contribute significantly to the company’s profitability and continued financial success.
A key person may be one of a number of people within a company, such as the chairman, managing director, marketing manager, computer specialist or sales manager – anyone whose death could lead to a serious financial loss for the business.

How does it work?

The business is the owner and the policy proceeds, if payable, will be paid to the company as replacement profits. The company then uses the proceeds to work its way through the loss of that key person.

Whether or not the premiums will be tax-deductible, or the proceeds taxable, will very much depend upon the circumstances for each individual business and we would recommend considering this aspect closer with your tax advisers before finalising the policy.

What is Shareholder Protection?

The loss of a partner or director will often de-stabilise a business and can quickly lead to financial difficulties. Partner/Director Share Protection means if the worst does not happen, the remaining directors or partners have the necessary finance to stay in control of the business. This gives them the chance to re-structure and manage relationships with the bank, creditors, supplies and key customers.

How does it work?

In the event of a partner or director dying, falling terminally or critically ill, Partner/Director Share Protection can provide a sum of money to the remaining partner(s) or director(s). This means that in the event of a valid claim, the policy could pay out an amount sufficient to purchase the deceased or critically ill partners/directors interest in the business. This secures the interests of the remaining shareholders without putting the future of the business at risk. In addition, the surviving family of the deceased have converted shares in a company, that they have little understanding or involvement in, in return for cash which is likely to be much more appropriate for their needs.

“Effectively it puts money in the right hands at the right time – when it’s most needed”

Download the full version PDF Managing Risks in Your Business

 

What can Delaunay Wealth Management do?

  • Advise you on the most appropriate policy to be fully underwritten
  • Work with your tax advisors to undertake a business valuation for these purposes
  • Ensure the Business Risk Plan is regularly updated to reflect the value of the business
  • Introduce you to a legal firm experienced in drafting the documents to go with such a transaction

Contact us for more information
T: +44 (0)345 50 53 500 E: mail@delaunaywealth.com

5 Top Tips for a Financially Secure Future

Long-term financial planning or even retirement may not be at the forefront of most young people’s minds. However, those that do consider their options and plan accordingly, have a clear advantage in the long term. We’ve collated some practical top tips that will help you on your way to a financially secure future.

Get ready early!

Often your younger years are when you’ll have the most disposable income and if you’re switched on then saving early will help you in the future. Often people get to the 30 – 40 age and worry that they may have no or little savings. If you’re living with parents still or don’t yet have children use this time to put some money away for your future investments. Make use of the workplace pension option if you’re young as well, it’s a great way to boost your savings for the future.

Invest in property

In Britain we’re all obsessed with owning our own property, which makes sense when mortgage repayments are often less than renting. It may be a challenge to save enough for a deposit when you’re young, but if you can it is definitely worthwhile. First time buyers are also exempt from stamp duty which can help you save a huge bill. You may choose to rent the property out and receive rent as an income or live there yourself. Generally speaking, buying a home is an investment in an appreciating asset so if and when you decide to sell, you should be able to do so at a profit, provided it isn’t in negative equity. And if you stay in the same property, once you have paid off your mortgage it will free up a huge portion of your finances to invest in a healthy retirement. A word of warning though: property is not just an investment, it is also a 20-30 year financial commitment, so be sure to speak to a professional before taking the step.

Calm down on spending

When you’re young it’s easy to get into bad spending habits which will drain you bank account, £100 shoes that you wear once are not a great investment. It’s good to get into a necessity mindset to curb your spending, while it’s important to indulge yourself once in a while. Think of purchases like an investment and if you’re not receiving the benefit you’re paying for then is it really a good buy? When you’re young it’s also easy to build up debt from University or just generally. Try to steer clear of store cards which can have high interest rates and also avoid buying items on your credit card that you’ll be unable to immediately pay back. While it’s good to have a credit card to build your credit rating only use it if you can pay it back by the end of the month.

Loyalty doesn’t always pay

It’s easy to be loyal to what you know, but often the habit can cost you, whether a bank account, phone contracts or car insurance. Loyalty often isn’t rewarded in these areas and while it can become habitual to renew or continue with the same service it’s important to investigate to get the best deals. Many young people will have had the same bank account since they turned 16 and often, you’ll be able to get better rates with another bank, or even a nice switching bonus. The government has launched a service to help you get the best deal for your bank accounts. It’s called MIDATA. You just have to load your recent statements and it will tell you the best bank account for you in terms of interest rates, overdrafts and more. With regards to mobile phones there are many comparison websites out there that you can use and the same with car insurance.

Talk about finances

If you’re still young you probably won’t have given much thought to future savings. As mentioned before now is the time you’ll probably have the most disposable income so put it to good use. Talk about finances with your partner and get an idea about what you want in the long-term and how you can help yourself now. Ask your parents or grandparents for some advice, they’ll probably know more than you do and they’ve already been through your situation so they’ll probably have plenty of advice anyway!

 

Delaunay Wealth Management provide financial planning services to business owners, professionals and wealthy individuals. Contact us on mail@delaunaywealth.com or 0345 505 3500.

July 2019 Newsletter

Delaunay July Newsletter

Welcome to our July Newsletter. In this edition we share a range of useful articles and resources to help you manage and plan your personal finances, such as:

  • Travel Money: the best foreign exchange rates
  • Pensions: why self-employed people should mind the gap
  • The financial impact of divorce
  • Income Tax Calculator

From pensions and tax efficient investments through to protecting your assets – if you would like bespoke advise on how best to manage your business or personal finances, we’d love to talk to you.

Read the full newsletter here.

* Not all areas of estate planning or tax planning are regulated by the Financial Conduct Authority. Tax treatment depends on individual circumstances. Both your circumstances and tax rules may be subject to change in the future.

Disclaimer: The Information included in this email is reserved to named addressee’s eyes only. Delaunay Wealth Management Ltd is not responsible for the content of third party sources.

The Financial Impact of Divorce

Divorce can be an emotionally stressful time of life. Even if there are no children or dependants involved, the allocation of assets after divorce is often an area of disagreement and can turn the best of relationships sour. As a general rule, the more details both parties can agree to between themselves, the better.

DIY Divorces

It is possible in England and Wales to get a legally enforceable divorce, from as little as £100. If divorcees want to minimise the cost of a divorce without involving a solicitor, then it is possible to get a consent order. A consent order details a financial agreement between the two divorcees which is legally enforceable. If couples create a written financial legal agreement without a consent order it is not 100% legally enforceable and sometimes results in a claim against a former partner.

Complex divorces

Even if both individuals have parted on good terms, getting professional advice from a solicitor, mediator or financial adviser is recommended when your financial situation is more complex. This could include owning a business or one person being financially dependent on the other person.

There is no hard and fast rule about how assets will be split following a divorce. Should it be impossible to reach an agreement, these are the factors that a court would look at:

  • Current income and earning capacity, property and other financial resources that each spouse has or is likely to have in the foreseeable future.
  • The financial needs, obligations and responsibilities, which each spouse has or is likely to have in the foreseeable future.
  • The standard of living enjoyed by the family before the breakdown of the marriage.
  • The ages of each spouse and the duration of the marriage.
  • Any physical or mental disability of either spouse.
  • The contributions that each spouse has made or is likely to make in the future to the welfare of the family.
  • The conduct of each spouse, if that conduct is such that it would be unfair to disregard in the opinion of the Court.
  • The value to each spouse of any benefit that one spouse would lose because of the divorce.

As financial planners, we can advise on issues such as how to divide the assets in the most tax-efficient way and how to best invest the proceeds of divorce. Contact our team on mail@delaunaywealth.com or +44 (0)345 505 3500.

Delaunay Wealth Management Limited is authorised and regulated by the Financial Conduct Authority (806635). Registered in the UK at: Wey Court West, Union Road, Farnham, Surrey, GU9 7PT. Company Registration Number: 08107472 The Financial Conduct Authority does not regulate taxation and trust advice and employee benefits.

Should you have cause to complain, and you are not satisfied with our response to your complaint, you may be able to refer it to the Financial Ombudsman Service, which can be contacted as follows: The Financial Ombudsman Service, Exchange Tower, London, E14 9SR www.financial-ombudsman.org.uk

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