As expected Bank Base Rate stays at 0.5%June 10th, 2010The Bank Of England has decided to keep the interest rate at 0.5% for the fifteenth month in a row. The 200 billion pounds of quantitative easing scheme remains unchanged as analysts predicted. The freeze was expected to remain until the extent and scale of the government’s spending cuts programme is announced in the June 22 budget. Suspension of HIP’sMay 17th, 2010According to well-placed sources, an order to suspend HIPs (Home Information Packs) has been signed, with Parliament making an announcement later this week. We will continue to monitor the progress and keep you informed. Bank base rate remains at 0.5%May 11th, 2010The Bank of England’s Monetary Policy Committee voted on Monday to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. Although they usually meet on the first Thurday of the month, this was changed to the 10th May due to the General Election. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The Committee’s latest inflation and output projections will appear in the Inflation Report to be published at 10.30am on Wednesday 12 May 2010. The minutes of the meeting will be published at 9.30am on Wednesday 19 May. Aviva paid out 91% of all critical illness claims in 2009April 22nd, 2010During 2009 Aviva (formally Norwich Union) paid out 1,499 critical illness (CI) claims, totalling almost £118 million. The average amount paid out has increased from £75,000 in 2008 to £79,000 in 2009. Cancer remained by far the most common cause, 67% of all claims in 2009. The number of claims declined in 2009 for non-disclosure of medical facts at the policy’s outset remained stable at 2%. A further £151 million has been paid to the families of people who have died, or been diagnosed with a terminal illness in 2009. This takes the total Aviva has paid out to over £1 billion pounds in critical illness and life insurance claims since 2006. Richard Verdin, director of protection at Aviva, said: “Critical illness cover remains a crucially important solution for many. With 9 in 10 claims being paid. Collectively we owe it to customers to ensure people do realise the potential need and value of life insurance before it’s too late.” He stated “47% of Britons don’t have critical illness or life protection and even more worryingly 75% of single parents have no protection, which has huge implications for their families”. To ensure that you and your family are fully protected in the event of suffering a critical illness contact 1 STOP Financial Services for a free review. 01437 767110 www.1sfs.co.uk1 Stop Financial Services at Wembly StadiumApril 21st, 20101 Stop Financial Services will be attending the Harlequin Hotels & Resorts pre-opening launch of Buccament Bay Resort, at Wembly Stadium on 24th & 25th April 2010. Buccament Bay Resort, on St. Vincent & The Grenadines in the Caribbean, will open in July this year. Harlequin Hotels & Resorts offer superb investment opportunities in a hotel style investment based in the Caribbean. The complex’s offer a luxurious 5 star facility which includes golf and spa investments. Private investors have the opportunity to invest in a commercial resort ranging from studio apartments to 6 bedroom luxury villas, off-plan at well below market value. Rewarding investors with high capital appreciation and excellent short and long term returns on investment. In addition this investment can be purchased using monies in your pensions via a SIPP. Andy Rees & Tim Hughes will be available at the pre-launch to speak to clients on how they can use their pension funds to invest in a Harlequin Property, via a Self Invested Personal Pension (SIPP). This investment opportunity offers investors:
To find out more about investing in a hotel resort contact 1 STOP Financial Services for a FREE consultation. www.1sfs.co.uk (01437) 767110. Bank of England concerned about the rise in inflationApril 21st, 2010According to Moneyfacts.co.uk, the Bank of England has admitted that they are concerned about the rise in inflation, which is currently at 3.4%, well above the government’s 2% target. Recent figures revealed that inflation increased from 3.0% in February to 3.4% in March. Minutes from the Monetary Policy Committee’s (MPC) monthly meeting revealed that inflation is likely to stay above the long term target of 2% for some time yet. The MPC said “Given that a period of above-target inflation was in prospect at a time when monetary policy was exceptionally accommodative, this was a source of concern for some members.” Recent research conducted by Moneyfacts.co.uk found. rising inflation is hitting savers in the pocket. A basic rate taxpayer now needs to find a savings account paying at least 4.25% in interest to prevent their savings pot being eroded, of which there are currently just 44 available on the market. For a higher rate taxpayer, the challenge is to locate a savings account rate of 5.64%, a return only currently available through four accounts. It comes at a time when interest rates are at an historic low, further penalising savers. Minutes from the MPC’s meeting also revealed that the decision to freeze the base rate of interest at 0.5% – a level that level the measure has been marooned at since March 2009 – was taken unanimously. To review your savings and investment plans contact 1 STOP Financial Services for a FREE consultation. www.1sfs.co.uk (01437) 767110. UK house prices rose 1.1% in MarchApril 8th, 2010According to the Halifax house price index the price of the average UK home rose 1.1 % In March. This was the eighth rise in the last nine months and the March rises pushed prices up 9.1 per cent since hitting their lowest point in April 2009. Martin Ellis, housing economist, said the rate of growth was still slowing overall after the return of the £125,000 Stamp Duty threshold and poor weather at the start of the year. He said: “There are signs that an increase in the number of properties available for sale is beginning to reduce the imbalance between supply and demand. This should help to contain the upward pressure on house prices.” The average house price is now £168,521. In addition, Bank of England industry-wide figures show that the number of mortgages approved to finance house purchase – a leading indicator of completed house sales – fell by a seasonally adjusted two per cent between January and February following a much larger decline of 17 per cent in the previous month. However, the temporary increase in the lowest stamp duty threshold announced in last month’s Budget will mean that most first-time buyers do not pay the tax. At £250,000, more than nine in ten first-time buyers would have been exempt from paying stamp duty in 2009 compared with just over one in two if the lowest threshold had been £125,000. The southern Bank Base Rate remains at 0.5%April 8th, 2010The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The base rate has not changed for over 12 months with the last change on 5 March 2009 with a reduction of 0.5 percentage points from 1.0% to 0.5%. A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009. The most recent change in the size of that programme was an increase of £25 billion to a total of £200 billion on 5 November 2009. With the timing of the General Election the next Monetary Policy Committee meeting will conclude on the morning of Monday 10 May, with the decision announced at 12 noon. The Inflation Report will be published as originally scheduled on Wednesday 12 May. Information on the Asset Purchase Facility can be found on the Bank of England website at http://www.bankofengland.co.uk/monetarypolicy/assetpurchases.htm. The Bank will continue to purchase high-quality private sector assets on behalf of the Treasury and financed by the issue of Treasury bills, in line with the arrangements announced on 29 January 2009. Review of the March Budget 2010March 30th, 2010As you will be aware the Chancellor, Alistair Darling, has published his 2010 Budget. Below you will find a summary of the main announcements.Change to Personal Allowance No changes to basic and higher rates, however from April 2010 there will be an additional rate band of tax. In April 2009 Budget the Government announced that it would be introducing a new 50% rate of tax on income above £150,000 from April 2010. In April 2009 Budget the Government announced that with effect from 6th April 2010 individuals receiving an income of more than £100,000 per year would face a cut in their Personal Allowance. This would reduce by £1 for every £2 of income above £100,000. This was restated in the March 2010 Budget. Inheritance Tax The nil rate band of Inheritance Tax will be frozen at £325,000 until 2014/2015. Stamp Duty Allowance For first time buyers Stamp Duty Allowance will double from £125,000 to £250,000 (from midnight on 24th March). This is anticipated to be funded by a new 5% band of tax being introduced in the 2011/12 tax year on properties sold for £1,000,000 +. Capital Gains Tax The current CGT rate remains unchanged. However, Entrepreneurs’ Relief for CGT will be extended from £1m to the first £2m of qualifying gains made over a lifetime. This takes effect from April 2010. Annual ISA limit As announced earlier, for savers, from April 2010 the annual ISA limit will rise from £7,200 to £10,200. Future ISA limits will be indexed by RPI. Winter Fuel Payments The Government will guarantee payments for another year – this will be at least £250 for pensioners (£400 for those over-80′s). Business Rates Business rates will be cut for one year from October for SMEs (Small and Medium Enterprises). Tax credit Individuals over the age of 60 will now be eligible for Working Tax Credit provided they work for at least 16 hours a week. National Insurance In the March 2010 Budget it was restated that employee, employer and self-employed rates of National Insurance contributions (NICs) will increase by 0.5% from April 2011 in addition to the 0.5% increase announced in 2008. However the level at which people start to pay NICs will increase in April 2011 by £570 above the level previously announced. Personal pensions tax relief In their April 2009 Budget, the Government announced that with effect from 6th April 2011, tax relief on pension contributions would be restricted for those with gross income in excess of £150,000. These are referred to as the ‘permanent changes’. The Act also included ‘anti-forestalling restrictions’ to prevent higher earners from paying unusually large pension contribution to take advantage of current tax benefits prior to the permanent changes coming into play in 2011. Alongside the March 2010 Budget, the Government has outlined its plans for introducing these changes. |
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