Investment and Savings

Deposit Accounts

These are savings accounts involving a pure cash content and therefore inherently low risk.

There are many different options available offered by banks, building societies and other financial institutions.

For more information please contact us.

Property Investment Buy to Let

The idea of investing in let property is not necessarily new by any stretch of the imagination however it has become extremely popular over recent years in a rising house price market. Whilst investing in bricks and mortar is viewed as relatively secure there are a lot of points to consider before committing to this type of long term investment.

We strongly urge you to discuss your needs in depth with us before making any kind of decision. Contact us.

Collective Investments

A collective investment scheme is an arrangement that enables a number of investors to ‘pool’ their assets and have these professionally managed by an independent manager. Investments may typically include gilts, bonds and quoted equities, but depending on the type of scheme may go wider. For example some investments may be in unquoted investments or property. Investors in such schemes are able to reduce risk by spreading their investments more widely than may have been possible if they were investing in the assets directly. The reduction in risk is achieved because the wide range of investments in a collective investment scheme reduces the effect that any one investment can have on the overall performance of the portfolio. Contact us.

Unit Trusts and OEICS

General Description

A Unit Trust or OEIC is a ‘pooled’ investment normally consisting of a large number of shares, property or securities as the underlying assets, thereby spreading your investment risk. This contrasts with direct investment in shares, property or securities where just one or a small number of assets are held, thus increasing the investors dependence on those assets to perform and thereby the risk profile of the investment.

Unit trusts and OEICS are tax efficient as they are exempt from tax on gains within the trust. This situation is particularly attractive to investors who are not likely to make capital gains above their annual allowance, as the fund will grow free of capital gains tax and no capital gains will be payable personally.

Unit trusts and OEICS provide specialist investment management, within a wide range of sectors and assets, together with cost effective administration from professional fund managers. Contact us.

ISA – Tax Efficient Investment

General description

The ISA began on 6th April 1999 and was intended to be available for a minimum of ten years although the contract is open ended. The accounts can be made up of cash, stocks and shares and other collective investments. They are available to individuals aged 18 and over who are both resident and ordinarily resident in the UK.

Savers may subscribe up to £15,240 in each tax year and there is now no limit as to what can go into cash with the remainder into stocks and shares/other collectives. This means that at the extremes you could be all invested in cash or all invested in stocks and shares. In addition there are now Junior ISA’s that replace Child Trust Funds, (CTF’s). These new products are very similar to full ISA however limited to investment of £4,080 in any financial year but can be invested in any blend of cash and stocks and shares.

For more information please contact us.

Typically we will use a platform or wrap arrangement for this type of investment to allow maximum flexibility at minimum cost. The use of such a platform will bring many benefits such as fund analysis, updates, funds and markets information plus of course the opportunity to manage your investments on-line under one umbrella at no additional charge!

Investment Bonds

General Description

Investment bonds offer you a spread of investments on a unitised basis, with ease of dealing, a clear charging structure and the ability to switch your investments to other funds within the bond at little or no charge within the same investment management group. Bonds should be viewed as medium to long term investments e.g. in excess of 5 years, and you should be willing to accept short-term volatility in your investment, otherwise this type of investment is unsuitable for your needs.

Investment bonds pay capital gains tax within the fund at up to the basic rate of tax. You will only be liable to the differential between the basic rate and the higher rate of tax in the future, should you be a higher rate taxpayer in the year of encashment. This means that basic rate taxpayers have no further liability to tax.

A major feature of an investment bond is the facility to draw ‘income’ as and when required, as it is possible for the 5% of the original capital investment to be withdrawn as ‘income’ each year for up to 20 years.

For more information please contact us.

Offshore Investment Bonds

General Description

Offshore Investment Bonds offer you as investors, a spread of investments on a unitised basis, with ease of dealing, a clear charging structure and the ability to switch your investments to other funds within the bond at little or no charge within the same Investment Management Group. They should be viewed as medium to long term investments.

Offshore Investment Bonds accumulate virtually tax free with an element of withholding tax on UK equities and local taxation dependent on where the investment is based. It therefore offers better growth prospects over the medium to long term than other investments which are taxed on an ‘arising basis’. Tax on the growth is only levied upon encashment and then, only to the part being encashed.

This offers tax-planning opportunities to investors who may become non-resident for tax purposes in the future. Encashment of the bond whilst non-resident will not incur any UK tax liabilities. Time apportionment relief is also available so that even if the bond was not encashed while non-resident, that period would not count for tax purposes. For example a bond encashed by a UK resident who had been non-resident for 50% of the time that the bond had been in force would only be taxed on half of the growth.

A major feature of an investment bond is the facility to draw ‘income’ as and when required, as it is possible for the 5% of the original capital investment to be withdrawn as ‘income’ each year for up to 20 years.

For more information please contact us.