Taylor Patterson Group Ltd – Latest news
Fellowship for Preston Financial Adviser
Pensions squeezed? It’s time to review your investment portfolio
Financial Advisers Put On Their Trainers For Preston Guild 5k
Ten reasons to opt for a SSAS
Taylor Patterson urges businesses to prepare now for pension changes
Taylor Patterson Appoints In Trio of New Recruits
Budget 2012: What it means to you
Greg’s ahead of the pack with new financial Statement of Professional Standing
Taylor Patterson announces revised SIPP & SSAS Key Feature Documents and Scale of Charges
Pensions: Get flexible
The Retail Distribution Review – Taylor Patterson’s progress update
Taylor Patterson receives double award recognition
Don’t lose the chance to carry forward pension contributions
Tax year end planning tips 2011/12
Give yourself a pension pay rise of up to 60%
Taylor Patterson launches new online service for its SIPP pensions
Taylor Patterson Appoints New Accounts Manager
New low for pensions this January
Taylor Patterson team smashes fundraising target
5 April 2012 deadline looms
Fellowship for Preston Financial Adviser
May 17, 2012
Phil Rogers, director at Taylor Patterson has achieved Fellowship status, the pinnacle standard for financial professionals, following a stringent examination process.
Phil is the first director at Taylor Patterson to achieve Fellowship. The award recognises the highest level of academic attainment and professional achievement.
Awarded by the Personal Finance Society (PFS) the financial services arm of the Chartered Insurance Institute (CII), Fellowship is held by fewer than five per cent of practicing advisers.
Commenting on his Fellowship, Phil said: “I’m delighted to have met the criteria required to achieve Fellowship status for the PFS. It’s an achievement acquired through a combination of exams taken over a four year period.
“I worked towards Fellowship as a benchmark for other Taylor Patterson advisers, to encourage them to participate in the program too”.
All Taylor Patterson advisers already hold at least a Diploma in Financial Planning which will become the compulsory minimum level of qualification in the industry from January 2013 as a result of the FSA’s Retail Distribution Review.
Gillian Bardin, Taylor Patterson Managing Director, said: “We are supporting all our financial advisers to achieve Chartered Financial Planner status which is above the standard required by the Retail Distribution Review.
“We very much welcome the requirement for a minimum level of qualification for advisers, and the many other changes to the industry that the FSA is implementing through the Review. We believe it can only be a good thing to have a more open, clear and transparent financial services industry where excellent qualifications, professionalism and strong ethics are at the very heart of business.”
Pensions squeezed? It’s time to review your investment portfolio
May 4, 2012
It’s a given that pensions are being squeezed for everyone and from every direction. But rather than despairing or planning a frugal retirement, what can we really do to provide a much-needed financial cushion for what should be our golden years?
Taylor Patterson has been working with its clients to take a fresh look at their portfolios and turn attitudes to later-life investments on their head.
The ‘traditional’ investment strategy
In the past some in the financial advice industry have set almost a blueprint for planning investments, whereby in our twenties and thirties we could invest aggressively, opting for high risk investments which are likely to yield substantial returns in the many years until retirement.
In later life, with less time for investments to come to fruition, investors would traditionally choose to minimise exposure to non-cash opportunities, minimising the risk of making losses to their pension pot just at the point when it is needed.
Often people would sell their investments and purchase an annuity, providing them with a steady and regular income through their later years.
A change in perspective
However, times are changing and Taylor Patterson is increasingly advising clients who are approaching retirement age to opt for a higher growth, higher risk approach to investments.
This change in perception has been heavily influenced by our increasing longevity. Many of us can expect to live for twenty or thirty years after retiring.
This, coupled with high inflation and low interest rates, means that minimal risk investments may now lose value in the decades after retirement.
Whilst a ‘safe’ option to invest in bonds may actually leave us worse off in the long run, many pensioners can instead be confident in opting for higher risk investments which are more likely to yield substantial results in ten years or more.
The balance of risk is key
Taylor Patterson associate director, James Thompson, says: “Pressures on pension funds from all directions mean that many people are changing tack in a major way when it comes to their investment portfolio.
“We’re increasingly advising our customers that simply because they are in or approaching retirement, they don’t necessarily have to swap their growth-based portfolio to one which offers less risk, and consequently less potential reward.
“In fact, taking a slightly higher risk than usual might be a better option in order to secure an income in retirement, although essentially, balance is key.”
Flexible access to your pension fund
Flexible drawdown is another option which can offer investors an income in retirement. It allows people over the age of 55, who can demonstrate that they have a secure minimum annual income of £20,000 or more, to take unlimited amounts of income from their pension fund.
“It’s important for people with large pension funds to know that there is now much greater flexibility available,” said Kerry Houghton, associate director at Taylor Patterson.
“Those eligible for this facility can withdraw a fund in its entirety, or take part withdrawals, as best suits their needs. This may be useful for clients needing to release capital for specific uses such as long-term healthcare costs, to pay university fees for family members or for that special trip of a lifetime.”
Another upside to income drawdown is that you retain control of your money, which means your partner or dependants will be able to benefit when you die – whereas, with an annuity, the insurance company keeps your cash.
Property to fund your retirement
Property can also offer a relatively secure investment for retirees, although maintaining an element of liquidity is key to ensure funds are available for unforeseen circumstances.
James Thompson continues: “There are a whole range of options on offer and it’s important to strike a balance between risk and reward, liquidity and long-term investments.
Take a look at your investments with Taylor Patterson
“Because of this, and because it is important to continually review a portfolio in light of changing economic and personal circumstances, Taylor Patterson is currently offering free portfolio reviews to anyone who would like to take a second look at their investments.”
Anyone who would like to receive a free portfolio investment from Taylor Patterson should contact James Thompson on 01772 555 073 or email mail@taypat.co.uk to arrange an appointment.
Financial Advisers Put On Their Trainers For Preston Guild 5k
April 30, 2012
Staff from a Preston-based financial advisory firm will be putting on their trainers for the Preston Guild 5k to raise money for St Catherine’s Hospice.
Five runners from Taylor Patterson, Daniel Barrell, Kerry Houghton, Nick Howarth, Gwen Robertson and Neil Stewart, will be taking part in the road race on 7 May 2012.
The event is the first of four runs which make up the 2012 Guild Road Race Series.
Taking part in a sponsored run for the first time, Gwen Robertson said: “I’m looking forward to this bank holiday 5k run. It’s a great opportunity to get involved in a Preston Guild event and to raise money for St Catherine’s Hospice, a fantastic local charity.”
Chris Bardin, director and charity champion at Taylor Patterson said: “Taylor Patterson is really keen to get involved in the Preston Guild. We’re delighted that a group of staff have volunteered to get involved in the 5k run and we’ll continue to encourage others to sign-up for future fundraising events.”
Lynne Whittaker, senior fundraiser at St Catherine’s said: “It’s great to have Taylor Patterson as one of our corporate fundraisers. As a local charity for local people, St Catherine’s couldn’t deliver the care we provide without the fantastic support from the community. We wish all the runners lots of luck!”
Taylor Patterson’s staff nominate a different local charity to support each year. This year the company has set a £5,000 charity fundraising challenge, and monies raised will be donated to St Catherine’s Hospice.
If you would like to sponsor a runner from Taylor Patterson please visit the company’s charity JustGiving page at
Ten reasons to opt for a SSAS
April 2, 2012
SSAS, short for Small Self Administered Scheme has become increasingly popular during the economic downturn as it offers a range of benefits to smaller businesses.
Here Taylor Patterson provides an insight into SSAS and offer our top ten reasons for opting for a SSAS pension.
A SSAS is an occupational registered pension scheme that can be established by company directors and key employees. It is ideally suited for shareholding directors of family and other privately owned small to medium sized limited companies.
Taylor Patterson has developed its own SSAS pension as part of its services – the Taylor Patterson SSAS.
Taylor Patterson associate director, Kerry Houghton, says: “More and more of our clients are finding that SSAS pensions are right for them, helping them financially from both a personal and a business point of view.
“It’s been well publicised that many small business owners are finding it difficult to get loans from high street banks. A SSAS can be one way to address this as loanbacks are possible, meaning pension holders can lend money to their own businesses at more cost effective rates.
“SSAS pensions can also be used to purchase commercial property and lease it back to the company at market rates. When times are hard this can also be an advantage as a SSAS-owned property can be better protected from company creditors.
“The details of what’s possible through a SSAS pension can be complex, hence we really encourage our clients to come and talk to us about their pension arrangements so we can arrange the best possible products for them personally.”
1. Beat the banks with a loanback
A SSAS can lend money to a connected business, providing both a good return for Trustees and cost-effective borrowing for the business.
2. Make property pay
SSAS members can directly purchase commercial property and lease it back to the business at good rates. There are a number of additional tax saving benefits of doing this including capital gains tax exemption and tax relief on pensions contributions.
3. Providing for all ages
A SSAS is a pooled fund, so, with careful cash flow planning, it can help provide for older members looking to draw benefits. If the main fund assets are property, then older members can retire and use the rental income from the property to draw a pension.
4. Making company contributions flexible
There is no contractual commitment to pay a particular company pension contribution, so they can be varied in line with profitability.
5. Spread your investments
The SSAS can invest in a range of investments, although there are some which may not be allowed on the grounds that they would be deemed taxable by HMRC, for example most forms of residential property.
6. Protect your assets
Businesses can protect their assets against business creditors in an economic downturn by using a SSAS to invest in commercial property. It is therefore possible to sell existing business premises to the SSAS at a market rate, whilst also providing cash for the business and a healthy retirement fund for business owners.
7. Keeping costs down
Annual administration costs are usually cheaper than operating several pension arrangements for each member of the SSAS scheme.
8. Bigger benefits
The Taylor Patterson SSAS allows for withdrawal of benefits via scheme pensions. This can be a big benefit for any scheme members in ill health and can provide higher income withdrawal limits than other pension options.
9. Keep your money in one place
Members can transfer funds form most types of UK registered pension schemes. They then be consolidated into one single SSAS and the funds used for new investments such as buying property or stocks and shares, or loans to the business.
10. Appoint your own advisers
Subject to prior approval by Taylor Patterson, scheme members may act as their own property manager, or appoint a solicitor, surveyor, property agent, stockbroker, accountant or tax and investment adviser to help manage the pension fund.
For more information on SSAS pensions or other alternative pension schemes, please contact Taylor Patterson’s dedicated team of SSAS technicians and administrators who can assist further on 01772 555 073 or email sippssas@taypat.co.uk
Taylor Patterson urges businesses to prepare now for pension changes
March 29, 2012
Taylor Patterson is encouraging companies of all sizes and in all sectors to begin to plan for changes to pension law which will be rolled out from October 2012 onwards.
The government’s auto enrolment plans mean that all companies must automatically include the majority of their employees into a workplace pension, a development which could have a significant impact on businesses’ financial plans for the years ahead.
The largest organisations will be required to do so from October this year, with smaller ones having longer to react to the changes. The exact deadline for compliance by the smallest businesses has yet to be set by government.
Employers will be required to automatically enrol eligible employees into a qualifying pension scheme - and pay employer contributions. They must also register their compliance with the Pensions Regulator.
Taylor Patterson is advising companies to allow at least 18 months to prepare for the changes and stresses that it is important not to underestimate the time required to prepare.
Businesses that delay could risk paying higher costs for the scheme, as pensions providers become more selective as they struggle to cope with the demand for their products.
Paul Jackson, Employee Benefits manager at Taylor Patterson says: “Although some of the smallest employers will not be required to implement these changes to their pension arrangements for some years yet, it is never too early to start planning.
“For example, companies that work in industries such as the construction sector may often have to bid for projects which do not yield income for four or five years. They need to think now about how changes to pension law will impact their costings and financial plans in the future.
“We’re encouraging our business clients to start talking to us now about how they will respond and plan ahead for the changes so there are no unpleasant surprises or last minute panics as deadlines come closer.”
For more information on auto enrolment to workplace pensions, contact Paul Jackson on 01772 555 073 or email mail@taypat.co.uk
Taylor Patterson Appoints In Trio of New Recruits
March 28, 2012
Preston-based financial advisory group, Taylor Patterson, has strengthened its team with the appointment of three new recruits.
James McIntyre from Blackburn joins the firm as a financial adviser and will help to communicate Taylor Patterson’s new services to existing clients. Prior to taking up the role at Taylor Patterson, James worked at RSM Tenon and Nationwide Building Society.
Commenting on his appointment, James said: “I am delighted to join Taylor Patterson at this exciting time within the financial services industry. There are hundreds of clients that can benefit from the new fee-based service model and the excellent service the team has a long-standing reputation for.”
Andrew Jacques of Bolton brings over 16-years experience to his new adviser support role. Working within the employee benefits division, Andrew will help to look after a panel of Group Personal Pension schemes, Group Life, Group PHI and Group Healthcare schemes.
Andrew said: “I am very pleased to have joined Taylor Patterson as I have known and dealt with the company for a number of years whilst previously working at Friends Life.”
Taylor Patterson also welcomes Natalie Hall who joins the company as part of its apprenticeship scheme. Throughout the training programme, Natalie will be involved in various business administration projects with an emphasis on human resource support. The scheme involves attending college one-day each week to complete the BTEC Business and Administration Level two qualification.
Natalie from Preston said: “I am delighted about joining Taylor Patterson. I feel very fortunate to work for such a reputable company and I’m looking forward to developing new skills and forwarding my career.”
Managing director of Taylor Patterson, Gillian Bardin, said: “It is great to have James, Andrew and Natalie on board with us. We pride ourselves on being one of Lancashire’s leading financial advisers and the new recruits bring a blend of experience, knowledge and ambition to learn which will prove very valuable at a time of growth and expansion for the company.”
Budget 2012: What it means to you
March 23, 2011
With each year’s budget announcement the natural response is to estimate its effect on you, your family and your business. This year the real financial impact of George Osborne’s budget on 21 March is a little harder to measure than usual.
With cuts to tax and child benefit as well as cuts to personal tax allowances for pensioners, many have argued that this budget gives with one hand and takes with the other, leaving many in a ‘neutral’ position.
Glynn Bartley, director at Taylor Patterson said: “It’s been very much a neutral budget. We thought this would be the case as the chancellor simply does not have much to give away. Most of our clients, when they crunch the numbers and consider the impact of the budget, will find that that their financial situation is largely unchanged.”
Kerry Houghton, associate director at Taylor Patterson adds: “It’s a relief that some of the announcements which were suggested beforehand didn’t appear in the final budget – namely the threat of reducing annual allowances for pension contributions.”
Here’s a snapshot of some of the key budget implications…
Personal tax allowances
The abolition of the 50p tax rate was well publicised before the budget and Osborne followed through with this reduction. HMRC said that the yield from the band was lower than forecast as many in this bracket took greater steps than usual to avoid paying tax, such as through drawing dividends from investments in the previous tax year.
The personal allowance was raised to £9,205 from April 2013 for basic rate taxpayers but 300,000 more people will be drawn into the 40 per cent tax band as the threshold is reduced from £42,475 to £41,450.
What about businesses?
Corporation tax will be cut to 24 per cent from April, and then again to 22 per cent by 2014. Companies with a turnover of less than £77,000 can breathe a sigh of relief as the government takes steps to simplify the tax system for small firms. Osborne also announced £150m of tax increment financing to help councils promote development.
Impact on pensioners
Pensioners will no longer receive a larger personal income tax allowance than people of working age. Currently, over 65s can earn £10,500 before tax, and over 75s can earn £10,660. These will be removed for new pensioners from April 2013.
Estimates show that 360,000 individuals aged 65 will lose an average of £285, while 230,000 people will be brought into income tax for the first time.
Stamp duty changes
The government has already taken the step of implementing a new stamp duty level of seven per cent on homes worth more than £2m. This is an increase on the previous rate of five per cent. Any homes which fall in to this category which are bought through companies will pay 15 per cent.
Parents feel the pinch
The furore over the proposed cut to child benefit proposed earlier in the year has been reduced somewhat as the government has opted for a sliding scale of benefits. Where one parent earns more than £50,000, families will see their child benefit entitlement decrease incrementally up to £60,000 where it will be cut altogether.
Fuel, cigarettes and alcohol
Unfortunately, there are no changes to existing plans on fuel duty and the 3.02p per litre increase will go ahead in August. Meanwhile, vehicle excise duty will rise in line with inflation but will be frozen for road hauliers.
Smokers are being hit hard by this budget. Duty on all tobacco products rose by five per cent above inflation as of budget day. There is to be no change to plans on alcohol duty, which is set to rise by two per cent above inflation.
For more information about pensions, investments, tax allowances and more, contact Taylor Patterson on 01772 555073.
Greg’s ahead of the pack with new financial Statement of Professional Standing
March 22, 2012 
A Preston financial adviser is amongst the first to gain a new endorsement in the industry, a full year before being required to do so by the Financial Services Authority (FSA).
Greg O’Brien, wealth management adviser at leading Preston-based financial advisory group Taylor Patterson, has received the Statement of Professional Standing by the Chartered Institute of Insurers.
The Statement will become compulsory for all financial advisers from 1 January 2013 as a result of the FSA’s Retail Distribution Review, which aims to make the sector more open and transparent.
The Statement of Professional Standing provides customers with evidence that their financial adviser is properly qualified and keeps their knowledge up to date in an industry which is continually changing as a result of new legislation and complex financial markets. Advisers will be required to reapply for The Statement each year.
All Taylor Patterson financial advisers will apply for the Statement of Professional Standing over the coming months, which also requires they sign up to a code of ethics. All Taylor Patterson advisers already hold at least a Diploma in Financial Planning which will become the compulsory minimum level of qualification in the industry from January 2013.
Greg says: “I am very pleased to have received the Statement of Professional Standing well ahead of time. It will be an excellent development when all financial advisers are required to have the certification from January next year. It will reassure clients that advisers are highly qualified with well-rounded and in-depth knowledge of the financial services industry.”
As well as raising the standard of qualification for financial advisers, the Retail Distribution Review stipulates that sales of financial services should be separate from advice. The FSA will also be implementing changes to the way in which commission is charged on financial advice.
Gillian Bardin, managing director at Taylor Patterson says: “We are very pleased that Greg has met the criteria required to receive the Statement of Professional Standing. Taylor Patterson is supporting all its financial advisers in gaining their Statement in the near future.
“We very much welcome this new indicator of adviser professionalism, and the many other changes to the industry that the FSA is implementing through the Retail Distribution Review. We believe it can only be a good thing to have a more open, clear and transparent financial services industry where excellent qualifications and strong ethics are at the very heart of business.”
Taylor Patterson announces revised SIPP & SSAS Key Feature Documents and Scale of Charges
March 1, 2012
Taylor Patterson’s SIPP & SSAS scale of charges provides for fees to be increased on the 1st August each year by reference to the rise in National Average Earnings Index.
The fee schedules were amended on the 1st July 2009 and no increase has since been applied.
A review of the scale of charges has been carried out, and as a result, a new scale has been prepared which came into effect from the 1st March 2012.
There is no change to our basic annual administration fee however a number of changes have been made for additional services. In some instances the fees have increased whilst others have decreased.
Taylor Patterson has also revised its SIPP & SSAS key features documents which summarise the main points of how the various pensions operate. These documents are now structured in a more accessible ‘question and answer’ format.
Copies of these new documents have been sent out to all of our existing clients and are available on the Taylor Patterson SIPP & SSAS website http://sippssas.taypat.co.uk/technical-centre/key-feature-documents/
We trust these documents will be useful. Should you have any questions, please contact the SIPP & SSAS team on 01772 555073 or email sippssas@taypat.co.uk
Pensions: Get flexible
March 1, 2012
Legislation changes introduced in the Finance Bill 2011 have reversed the historic lack of flexibility around pension income options. A facility referred to as ‘flexible drawdown’ allows people over the age of 55, who can demonstrate that they have a secure minimum annual income of £20,000 or more, to take unlimited amounts of income from their pension fund.
Income streams eligible to form part of the minimum income include:
- final salary pensions
- pension annuities
- scheme pensions
- state pension benefits
It isn’t possible to start flexible drawdown if contributions have been made to any pension in the same tax year and, once in flexible drawdown, it is not possible to make further pension contributions.
“It’s important for people with large pension funds to know that there is now much greater flexibility available,” said Kerry Houghton, associate director at Taylor Patterson.
“Those eligible for this facility can withdraw a fund in its entirety, or take part withdrawals, as best suits their needs. This may be especially useful for clients needing to release capital for specific uses such as long-term healthcare costs, to pay university fees for family members or for that special trip of a lifetime.”
For more information about flexible drawdown please contact Kerry Houghton on 01772 555073.
The Retail Distribution Review – Taylor Patterson’s progress update
February 29, 2012
Chris Bardin, director at Taylor Patterson, provides an update on the company’s progress as the requirements of the Retail Distribution Review (RDR) are implemented, ahead of the 1 January 2013 deadline: -
Our work to respond to the changes in legislation by the Financial Services Authority (FSA) is continuing at a pace as our new Retail Distribution Review (RDR) compliant service proposition is now live.
We very much welcome the FSA’s plans to introduce improvements which will bring greater transparency and professionalism to our sector. Despite the fundamental nature of these changes which will separate product sales from advice, remove commission and increase qualification levels, there has been very little coverage to date of progress made by the industry in light of the changes which officially come into effect on 1January 2013.
Taylor Patterson is among the first financial advisory groups in the country to respond to the legislation and operate as a fully RDR compliant company 12 months before required to do so by law. Ensuring that our new service proposition is clear, transparent and effective is a major priority and we will be contacting all of our clients during the course of the year to discuss the implications of RDR and what impact, if any, it will have on their individual arrangements.
As mentioned above, a key change under RDR will be the separation of sales from advice. The industry has typically bundled both these services together and dividing the two will aid transparency and bring much greater clarity to clients with regard to the services being provided. Hand-in-hand with this is the FSA’s decision to put an end to commission as a means of paying for advice, designed to ensure that advisers have no bias towards one product over another. We have already taken the step of separating these elements of our business, splitting the cost of advice away from product transactions and applying a fee structure that we believe is fair to all.
Finally, in relation to training, Taylor Patterson is already ahead of the game, in that all our advisors are already qualified to diploma level or above.
For more information on RDR and how it could affect you, contact Chris Bardin on 01772 555073.
Taylor Patterson receives double award recognition
February 10, 2012
Preston-based financial advisory group, Taylor Patterson, has been shortlisted in two categories in the second annual Lancashire Business View Red Rose Awards.
The company is one of just a handful of businesses to be shortlisted in more than one category and is up for Financial Business of the Year and the Commitment to Skills Award at the ceremony being held at Blackpool Winter Gardens on 15th March.
Managing director of Taylor Patterson, Gillian Bardin, said: “2011 was a very positive and successful year for us with highlights including the introduction of a new senior management training programme, raising thousands of pounds for Derian House children’s hospice and a great day spent volunteering at Brockholes nature reserve.
“We are really pleased and proud to have been shortlisted for these two awards which recognise and celebrate the hard work and commitment of the Taylor Patterson team over the last 12 months.”
The Lancashire Red Rose Awards celebrate the outstanding achievements of businesses in the county and reward and recognise the companies, individuals and organisations that have not only survived but thrived in incredibly challenging times.
Don’t lose the chance to carry forward pension contributions
February 9, 2012
Preston-based financial services group, Taylor Patterson, is reminding people to make the most of their unused pensions contributions before April.
Under new guidelines announced in November, it is now possible for individuals to contribute up to £200,000 into their pension funds before the forthcoming tax year end.
HMRC has changed its interpretation of how carry forward rules apply to previous tax years, meaning that any payments above £50,000 in the previous three years now count as zero – rather than a negative total. This means that any overpayments from the past three years have not been deducted from unused annual allowances, allowing extra contributions to be made before April.
Kerry Houghton, associate director at Taylor Patterson, commented: “This new ruling creates a significant opportunity for high net worth individuals to boost their pensions before the fixed protection deadline comes into force in April 2012.
“Anyone who thinks they may qualify for carry forward should get advice from their financial adviser, who will be able to recommend the best course of action to get the most from your pension fund.”
For more information on carry forward and how it affects you contact Kerry on 01772 555073.
Tax year end planning tips 2011/12
February 6, 2012
There have been some significant changes to financial legislation in the past year and many investors remain unaware of their entitlements. Taylor Patterson’s financial planning director, Phil Rogers, highlights five top tips to prepare for the 2011-12 tax year end:
1. Maximise your pension contributions
From 6th April 2011, the annual limit on tax relief for pension contributions has been reduced from £255,000 to £50,000. Although this may seem a drastic reduction, the new annual allowance limit will be applied to the last three tax years commencing 2008/09 and provides the possibility of any unused allowance being carried forward. Individuals who have the available capital, this means that it is possible to contribute up to £200,000 in the tax year ending 5th April 2012. In such circumstances, an income equal to the total contribution for the current tax year will be required to maximise tax relief.
2. Don’t neglect your ISA
Outside of contributions to a registered pension scheme, an ISA remains the main method of investing savings in a tax efficient environment whilst allowing complete flexibility of access to the invested capital. The current annual subscription limit to an ISA is £10,680. Up to £5,340 can be invested in a Cash ISA, the balance held in a Stocks and Shares ISA. The tax credit on an ISA Dividend is not recoverable. For a basic rate tax payer therefore, an ISA invested in equities gives no income tax advantage. However, a 40% tax payer would benefit from an improvement in net dividend yield by 33.3% which increases to 56.5% for a 50% tax payer.
3. Equalise Capital Gains Tax (CGT) exemption
This provides valuable opportunity to generate tax-free profit generated by means of collective investments up to the annual CGT Exemption of £10,600 (2011/12). Portfolios of any significant value should be equalised between spouses or civil partners to maximise the use of each individual’s CGT Exemption. Income on collectives – even if accumulated – is taxable. By establishing a portfolio for capital growth, the potential liability to Capital Gains Tax on any profit in excess of the annual exemption is applied at the rate of 28% for higher and additional rate tax payer. This compares with tax of 40% (32.5% for dividends) or 50% (42.5% for dividends) for higher and additional rate tax payers respectively.
4. Single premium investment bonds
A single premium investment bond is a non income producing investment. In addition, any dividend income accumulates without Corporation Tax within a UK insurance company’s internal investment funds. By comparison with the 28% top rate of CGT applying to higher rate and additional rate tax payers, capital gains (after indexation allowance) realised by a UK life fund suffer corporation tax at up to 20%. Corporation tax bourn by the UK life fund acts as a tax credit for the investor meaning that on eventual encashment, a further tax charge will only arise if the investor is, at that time a higher rate or additional rate tax payer, after top slicing relief. By deferring encashment until a tax year in which the investor is liable only to basic rate tax, no further liability should arise under current legislation. The same effect can be achieved by assigning the investment to a basic rate or non tax paying relative prior to encashment. There is an additional benefit in terms of the tax deferred annual withdrawal allowance of 5% of the initial capital invested.
5. Safeguard age-related allowances
Individuals aged 65 and over are entitled to a higher personal allowance. If you are aged 65 or over, the personal allowance is increased to £9,940 and £10,090 for individuals aged 75 or over. However, if the individual’s adjusted net income is more than £24,000 for the current tax year, the additional personal allowance is reduced by £1 for each £2 of excess. This reduction stops when the allowance reverts to the basic personal allowance of £7,475. By using charitable donations, individual pension contributions are tax exempt investments such as ISAs on non income producing products such as investment bonds, the age allowance could be preserved.
Phil Rogers, financial planning director at Taylor Patterson, commented: “Tax is a complex subject, which is why we recommend people consult an independent financial adviser to ensure that they are not paying more than they are required to do so, while still paying their dues. This is particularly important for individuals with large or complicated portfolios to manage.”
If you would like to discuss any of the tax year end planning tips, please contact Taylor Patterson on 01772 555073.
Give yourself a pension pay rise of up to 60%
January, 31 2012
Taylor Patterson’s Employee Benefits team is advocating the value of shopping around to get the highest level of income from your pension fund.
Research shows that 66% of people take their annuity with the insurance company they have built their fund with, ignoring the rest of the market. This decision will affect your income for the rest of your life, so it needs to be the right one.
“By taking the time to search around for the best value annuity, or asking your financial adviser to do this on your behalf, I have seen clients obtain an increase in their monthly income of up to 60%,” says Paul Jackson, employee benefits manager at Taylor Patterson.
“This is particularly important for anyone with health or lifestyle issues, as this may entitle you to an ‘enhanced annuity’, provided by specialist insurers which can significantly increase monthly income. Annuity rates are based on average life expectancy, so, for example, someone who has had cancer, a heart attack, or who smokes, can expect to receive a larger monthly allowance than someone in good health.
“Even if you are in good health, there can still be a difference of 40% between the best and worst annuity providers.
“Your financial adviser will be able to give you guidance on the most suitable provider for your individual circumstances to ensure you get the best value from your pension pot. Once your annuity income is set, the level of income is guaranteed for life so it is worth investing time and effort to get it right.”
For further information contact Paul Jackson on 01772 555073.
Taylor Patterson launches new online service for its SIPP pensions
January 24, 2012
Preston-based financial services firm Taylor Patterson is launching a new online Self Invested Personal Pension (SIPP) to complement its existing portfolio of pension products.
The Lanson SIPP will allow clients and advisers to view information about their SIPP pensions such as valuations and fees, online 24/7.
A SIPP is a personal pension however unlike most traditional personal pensions, SIPPs offer a diverse choice of investments such as directly held commercial property, shares and unit trusts; greater control over pension fund; flexibility over how and when to take benefits in retirement; and full tax relief on contributions, subject to current limits.
Kerry Houghton, associate director at Taylor Patterson, explained the new online Lanson SIPP is evidence of the company’s commitment to providing responsive, high quality client services: “This new product presents an opportunity to help streamline administration due to its limited investment options, in return for lower charges through a new online version of the Investor SIPP,”
“It was introduced in direct response to the needs of our clients and introducers, who expressed an interest in being able to view their SIPP in a live environment.”
Allowable investments into this cost effective plan are the increasingly popular fund platforms that offer access to unit trusts, most discretionary fund managers, and stockbroker lead investments.
The Lanson SIPP is also ideal for anyone looking to invest in commercial property in the future, because it is possible to transfer from this contract to Taylor Patterson’s Master SIPP at no extra cost and then invest in direct commercial property.
Taylor Patterson also offers Cash SIPP, Group SIPP, Personal Retirement Plan, and Small Self Administered Scheme (SSAS) products.
For further information, visit Taylor Patterson’s SIPP & SSAS webpage http://sippssas.taypat.co.uk/ or contact Kerry Houghton on 01772 555073.
Taylor Patterson Appoints New Accounts Manager
January 20, 2012
Preston-based financial services group, Taylor Patterson, has appointed a new accounts manager to its bespoke pension products team.
Warran Bolton, who brings more than a decade of experience to his new role, will be providing accountancy services to the company’s SIPP (self-invested personal pension) and SSAS (small self-administered scheme) clients.
Prior to taking up the role at Taylor Patterson, Warran worked as a pension funds accounts manager at Bolton-based Rowanmoor Pensions.
Commenting on his appointment, Warran said: “I am very pleased to be joining the team at Taylor Patterson. Having been involved in the SIPP and SSAS pensions arena for many years I was aware of the company’s excellent reputation for high quality, personal service and I’m looking forward to playing my part in continuing to provide that service to both existing and future clients.”
Managing director of Taylor Patterson, Gillian Bardin, said: “It is great to have Warran on board with us. We pride ourselves on being one of Lancashire’s leading pension specialists and his in-depth knowledge and experience of pension products will prove very valuable at a time of growth and expansion in the team.”
New low for pensions this January
January 9, 2012
The Government Actuary Department (GAD) rates fell to 2.5 this month, compared with a high in March 2011 of 4.25. GAD rates, along with an individual’s age, gender and pension scheme value, are used to calculate the amount that can be drawn as annual income.
To illustrate the effect this can have on a person’s budget, a 65-year-old man with a £500,000 pension pot could have drawn £42,000 per annum in March last year. Now, because of the reduced GAD rates and the Government’s decision last April to cut drawdown from 120% to 100%, the same person could only draw £28,000.
“This can make a significant difference to people’s disposable income and unfortunately there is little that can be done to avoid it, which is why it is important to spend sensibly,” associate director at Taylor Patterson, Kerry Houghton, said.
“One option may be to consider flexible drawdown, which could be appropriate for some individuals. It is hard to say whether GAD rates may improve in the near future, but anyone who is in drawdown and is due a review will be affected.”
GAD rates are set monthly, using the 15-year long-term gilt rates.
For further information contact Kerry Houghton on 01772 555073.
Taylor Patterson team smashes 2011 fundraising target
January 9, 2012
Taylor Patterson's charity committee present Roya Khadem, Derian House Fundraising Co-ordinator (4th from left) with fundraising cheque
Taylor Patterson is pleased to announce a grand total of £4,140 was raised for its chosen charity in 2011 – Derian House Children’s Hospice.
With the help of staff, friends, family and our clients we have smashed our target of £3,300, which will all go to help an excellent cause.
Derian House, based in Chorley, cares for children with terminal illnesses. Less than 10% of its funding comes from statutory sources, with the rest needing to be made up through fundraising.
Taylor Patterson’s managing director, Gillian Bardin, commented: “We are overjoyed that we have raised such a fantastic amount and we are looking forward to handing it over to Derian House in the coming weeks.
“Our annual quiz night in November was a great success as always, bringing in more than £2,500 of our total. We would like to thank everyone who has donated and helped in our fundraising efforts.”
Roya Khadem, fundraising coordinator at Derian House said: “We are delighted to receive this cheque from Taylor Patterson. The monies raised will help continue funding the provision of specialist palliative respite and terminal care for children and young people across the North West. We appreciate the time and hard work of all our corporate supporters.”
5 April 2012 deadline looms
January 5, 2012
Preston-based financial services group, Taylor Patterson, is reminding high earners of changes in pension legislation which could have a major effect on their income.
There are now just three months to go until the second tranche of the Government’s new pension legislation comes into force from April 2012, which is why those with significant pension funds are being urged to prepare now to protect themselves against unnecessary tax charges.
The changes mean that the Lifetime Allowance for pension funds and benefits will be reduced from £1.8m to £1.5m – the level at which it was originally introduced in 2006. The allowance is the maximum amount which can be drawn from a fund before tax penalties are imposed, which could be up to 55 per cent if the excess is taken as a lump sum.
A new type of protection, called fixed protection, has also been introduced to ‘soften the blow’, which allows those eligible to freeze the Lifetime Allowance at £1.8m, as long as certain future restrictions are complied with – the major constraint being that no future contributions can be made.
“In regard to these changes we need to consider not only people who have not drawn benefits and feel they may want to protect a potential fund of £1.8 million to draw on, but also those who have drawn benefits after 2006,” associate director for SIPP and SSAS at Taylor Patterson, Kerry Houghton, explained.
“Unlike the last occasion when protection issues arose, individuals who are in drawdown are not protected and, amongst other possible potential events, will have their funds tested against the lifetime allowance again when they are 75. They are allowed the difference in percentage terms between the old unused lifetime allowance and the new. Therefore applying for protection can help reduce tax charges on any growth within the scheme.
“It is important for these individuals to seek professional advice, as the granting of fixed protection poses many unanswerable questions, making this a tough and complex decision in many cases. For some, the option of contributing this year perhaps using the carry-forward of unused allowance and then applying for protection could be attractive.”
An individual can only apply for fixed protection if they do not already have primary or enhanced protection. The protection for these individuals continues. Applications for fixed protection must be received by HMRC by 5th April 2012.
For further information regarding fixed protection, contact Kerry Houghton on 01772 555073 or kerry.houghton@taypat.co.uk.
