And the degree winners are… (Churchill Financial Advice)
Graduates who took degrees in medicine and economics were the highest earners ten years after graduation, reported the BBC. The Institute of Fiscal Studies used data on student loan repayments to work out the numbers. Male medical graduates were earning £55,000 (females £45,000) and economics graduates £42,000 (females £38,000) while for creative arts graduates the figures were £18,000 and £14,500 respectively. Other top subjects for earnings were law, engineering and physical sciences.
Cut out of estate by second wife
A Daily Telegraph reader told the story of how his father’s second wife cut him out of a £300,000 inheritance. She and the reader’s father had made Wills where they each left all their assets to each other, with an agreement that on the second death, their children by former marriages would get equal shares. But after her husband’s death, she remade her Will leaving his son nothing. Experts said you would have to create a trust leaving only a life interest to the wife to avoid this problem.
You’re not free yet, Mr Bond
From April 6th 2016 the interest from banks and building societies is paid without any tax being deducted. Because everyone now has a Personal Allowance of £1,000 per year (£500 for higher rate taxpayers) over 95% of savers will pay no tax on their interest. But there is a big exception, says the Telegraph. Funds investing in bonds will go on deducting tax from their interest payments until April 2017 – because HMRC hadn’t worked out a system in advance. If you hold funds of this type in an ISA, it won’t matter because within the ISA the tax is automatically rebated. But people who hold funds investing in bonds outside an ISA will have to make a tax reclaim at the end of the year.
Business owners pay more tax
The Treasury expects to collect £2.6 billion in extra tax because business owners have accelerated dividend payments to avoid a looming tax hike, says the Financial Times. The tax rate on dividends in excess of £5,000 a year rose by 7.5% on April 6th, sense for defined contribution pension schemes, but ‘final salary’ benefits should usually stay where they are because you give up valuable benefits if you move. People near retirement will benefit most from consolidation because they can more easily draw tax-free cash and regular income from a single plan.
If you would like to speak with one of our Independent Financial Advisors and potentially receive financial advice, please contact us on 0117 923 7652. We are based in Clifton, Bristol but we are happy to service clients from across the UK and we provide free initial meetings at our client’s convenience.
(IFA Compliance, Newsletter April 2016)
Churchill Financial Advice
If you would like to speak with one of our Independent Financial Advisors and potentially receive financial advice, please contact us on 0117 923 7652. We are based in Clifton, Bristol but we are happy to service clients from across the UK and we provide free initial meetings at our client’s convenience.
Churchill Wealth Management Limited is located at 13 Alma Vale Rd, Bristol BS8 2HL, United Kingdom.
About Us: Churchill Wealth Management is a team of independent financial advisors/financial advisers (IFAs) based in Clifton, Bristol. We provide independent financial advice, including pension advice, investment advice, inheritance tax planning and protection/insurance advice.