Financial supplement 2013 by Barrister Magazine

the barrister

Personal Finance & Wealth Management Supplement If...

Kaiser Partner at a Glance

UK wealth in Liechtenstein: Privacy in a world of transparency

Barrister Advert 180mm x 125mm_Layout 1 23/10/2012 12:15 Page 1

TAX RETURNS & ACCOUNTS FOR BARRISTERS

Our multifaceted expertise lets us provide comprehensive, knowledgeable advice and support to private individuals and families on all issues relating to their wealth. We develop tailor-made strategies and solutions to help clients protect and grow their wealth in a rapidly changing world and to deal with asset protection and succession issues in a way that puts the interests of the family at the center. We are supported in our endeavours by an ever-expanding international network of experts in a wide variety of disciplines.

• Fixed fees • Meetings in Chambers

If you can keep your head when all about you Are losing theirs…; If you can trust when all men doubt you, But make allowance for their doubting too...

Our guiding principle – how we see our mission

We help our clients protect, manage and grow their wealth so that ultimately this wealth can deliver the greatest possible benefits – for our clients themselves, for their families and for the communities in which they live and invest. Our strategy – how we fulfil our mission

Everything on our planet is interlinked, connected with everything else and in constant motion. We try to recognize, foresee and understand changes, and by applying our expertise we aim to use the power of change to grow wealth. Our approach – how we achieve our objectives

Barristers Accounts and Tax Services

l l l

We put innovation at the centre As a company we want to and must keep developing – permanently. To manage wealth successfully we need to adapt and realign the tools we use to reflect the march of time and the way circumstances change. We take the long view and remember to heed the old lessons even when situations might require us to take new and as yet uncharted routes.

Rutland House, 148 Edmund Street, Birmingham B3 2FD T: 0121 236 0465 F: 0121 236 1465 E: chrisbarlow@bloomerheaven.co.uk W:www.bloomerheaven.co.uk

A short overview • Founded in 1931 • Wealth management group with private bank and trust affiliates • Investment advisor in Switzerland with SEC registration • 200 employees from 20 countries, speaking 10 different languages • Private clients in 20 countries • Worldwide, multidisciplinary network of experts • Head office in Liechtenstein • Offices in Vaduz (Liechtenstein) and Zollikon-Zurich (Switzerland) • CHF 25 billion of assets under administration

T +423 236 54 44, F +423 237 80 03 uk-desk@kaiserpartner.com

www.kaiserpartner.com

HOME INSURANCE ENHANCED

BECAUSE YOU KNOW YOUR ST ANDREWS FROM YOUR CARNOUSTIE.

Kaiser Partner Trust Services Anstalt Präsidial-Anstalt CorTrust reg. Pflugstrasse 10 9490 Vaduz, Liechtenstein T: +423 236 58 00 F: +423 236 58 01 www.kaiserpartner.com

You be the Judge – a bank that’s right for you?

With 90 years’ experience insuring homes, we understand that some cover needs to be as unique as the lifestyle and possessions it protects; from golf buggies to antique jewellery.

You don’t need to be told, but your finances are not always straightforward and, in terms of life’s priorities, they often come after cases, family and friends. With limited time to manage your money, whether chasing income, sorting out tax, paying chambers expenses or planning your retirement – when do you do it all?

That’s why we’ve partnered with Aqueduct Underwriting Limited to create Home Insurance Enhanced – bespoke high value protection that’s defined by you.

You need someone when you need them; someone who can deal with your financial needs professionally and promptly; someone who understands your world, de facto.

Enhanced covers homes that would cost over £800,000 to rebuild and require higher levels of content cover with valuables totalling more than £80,000. It also provides specialist cover for things like fine art, antiques and jewellery.

“

It is the ability to ring up and speak to an intelligent and articulate professional that makes Duncan Lawrie stand-out from the crowd. Retired High Court Judge and Duncan Lawrie client since 2007

Home Insurance Enhanced is arranged and administered by Aqueduct Underwriting Limited – underwritten by a panel of trusted insurers.

”

GET £100 M&S VOUCHERS WHEN YOU BUY A POLICY BY 31 DECEMBER 2013.

On average, Duncan Lawrie’s Bank Managers have been there for over 10 years – and so, from the start, you can be sure they will be committed to supporting you with integrity, professionalism and thoroughness, and you can be confident this connection will last.

CALL NOW FOR A TAILOR MADE QUOTE.

0800 072 5056 quoting e646

You may have non-standard banking needs or finances that need a high degree of individual attention, but this is not unusual with Duncan Lawrie clients. Their traditional, one to one personal service means they can be as accommodating as possible. Because your Bank Manager is familiar with your financial position, they can make decisions (about loans, for example) on an individual basis, so they can give you an answer fast.

Calls may be recorded and monitored. Call charges will vary. Lines are open 9.30am to 5.30pm Monday to Friday. Terms and conditions apply. See below for details.

The closing argument Although Duncan Lawrie offers a highly personalised service that doesn’t mean they charge premium prices. Their charges are clear, transparent and easy to understand because, as always, they believe in playing fair. Duncan Lawrie treats everyone as an individual, so they do not insist that you keep a minimum credit balance to benefit from their banking services. However, keep £250,000 with a Duncan Lawrie Wealth Manager, and they will waive the £25 monthly fee for a bank account.

The final piece of evidence Duncan Lawrie has always focused on their clients’ needs and wishes, and how best they can fulfil, or even surpass them. In a recent client survey*, 65% of banking clients scored their Duncan Lawrie Bank Manager 10/10 with an overall client satisfaction rating of 81% which compares with a peer group benchmark of 61%.

“

• Contact details for your personal Bank Manager, including their direct line, email address and mobile phone number

A very happy Duncan Lawrie client

”

Pass your judgement

“

”

Duncan Lawrie client since 1999

N/A

+8.7%

+14.7%

+2.1%

+11.0%

+16.0%

Kaiser Partner Privatbank AG Herrengasse 23 9490 Vaduz, Liechtenstein T: +423 237 80 00 F: +423 237 80 01 www.kaiserpartner.com

Visit the barristers & judges page in the services section of our website at www.bradish.co.uk

Past performance should not be seen as a guide to future returns. The value of investments and the income from them can go down as well as up and investors may not recover the amount of their original investment.

PRIVATE The Investment Family

Find out why we believe we have a competitive advantage

Kaiser Partner Financial Advisors Ltd. Zollikerstrasse 60 8702 Zollikon-Zurich, Switzerland T: +41 44 752 51 11 F: +41 44 752 51 35 www.financial-advisors.ch

www.scmprivate.com 0207 838 8650

This advertisement has been issued by SCM Private which is authorised and regulated by the Financial Conduct Authority - Registration Number 497525. The SCM Bond Reserve Portfolio commenced on 1st June 2011 and the SCM Absolute Return and SCM Long-Term Return Portfolios commenced on 8th June 2009.

We help high net worth individuals create and preserve wealth

31 Dugdale Hill Lane, Potters Bar, Herts EN6 2DP T: 01707 850969 www.bradish.co.uk mail@bradish.co.uk

DBE

To find out more about Duncan Lawrie and their services: T: 0845 680 8778 Monday to Friday between 9am and 5pm to speak to John Hilson or 07590 452440 outside of these hours. E: jhilson@duncanlawrie.com W: www.duncanlawrie.com/bank

You should talk to us if you: • have unrealised capital gains* • have done nothing to reduce your inheritance tax liability* • need to review your pensions and investments • would like professional advice on achieving your financial goals.

Lighthouse Wealth, part of Lighthouse Group, one of the UK’s largest financial advisory companies, specialises in helping high net worth individuals create and preserve wealth.

To find out how you could benefit from our professional approach to wealth management, including:

We achieve this by taking a comprehensive approach to wealth management. We offer far more than investment advice – although naturally this is an important part of what we do. We take into account your whole financial situation and develop and agree with you a complete approach to the management and growth of your wealth, for you, your family and future generations.

• protecting your income and lifestyle

LIGHTHOUSEWEALTH I think I’ve died and gone to banking heaven!

• Flexible borrowing, including loan and overdraft facilities (subject to

Legal & General Distribution Services Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales number 8083925. Registered Office: One Coleman Street, London EC2R 5AA.

N/A

+1.1%

+14.9%

Call Martyn Bradish for a free, no obligation meeting

ACCOUNTING SERVICES

When you’re busy, it’s often easier to deal with one highly reliable organisation you can trust. Duncan Lawrie will look after your everyday banking and financial needs, but with a much higher level of personal attention than you’d receive from most other banks. With them, you can be certain your finances will be well-organised, planned for the future, and you’ll save time and trouble.

online banking

+9.3%

+11.2%

LH Wealth Barrister advert 2013-08-11_Layout 1 07/08/2013 12:33 Page 1

Further cross examination reveals Duncan Lawrie is more than just a bank. As well as first class banking, Duncan Lawrie offers wealth management services. If your money is currently divided among various bank accounts, savings, ISAs and pensions, your Duncan Lawrie Wealth Manager can help you to organise it to create tax-efficient plans that will provide for the current security and future prosperity you want for yourself and your family.

• Current account banking with a combined credit/debit card and

In a world where chaos and confusion seem to be the order of the day, it is wonderful to walk into a sanctuary of calm efficiency.

+2.5%

+9.0% pa

Portfolio

The case for wealth management with Duncan Lawrie Private Bank…

Duncan Lawrie’s banking service offers all this and more:

status), and speedy decisions.

+6.3% pa

SCM Long-Term Return Portfolio +11.3% pa

We think and act independently SCM Absolute Return Our insights and convictions influence our ideas and guide our actions. We act confidently and in good faith, and our approach helps us understand the times we live in and do the right thing.

As an independent, family owned, wealth management group with roots dating back to 1931, we offer trust and bank services tailored to the specific needs of those living or investing in the UK. We have dedicated ourselves to tax compliant solutions and are able to offer you exclusive access to an extensive network of trusted partners to safeguard your wealth. As one of the architects of the Liechtenstein Disclosure Facility (LDF), we can help those seeking to regularize their UK tax position. Please contact us to learn more.

• Monthly newsletter

• Less cost = more performance • 100% transparent • Targetting consistent performance

Annualised 12 Months 12 Months 12 Months 12 Months Return Since to end July to end July to end July to end July Inception to 2013 2012 2011 2010 end July 2013

We take responsibility and expect others to do so too We know that “responsibility” is crucial and non-negotiable for ourselves and for each individual client relationship. We take responsibility for everything we do. And we expect our clients to act responsibly too. For us responsibility and sustainability are inextricably linked. SCM Bond Reserve Portfolio

Preparation of annual accounts Preparation and filing of self assessment returns Advice regarding payment of tax liabilities

Pupillage Offer For most pupil barristers, the Bar is their first experience of self employment. To help get things right from the start, we charge a reduced fee of £99 for dealing with the first tax year of pupillage – this includes accounts preparation, tax registration and tax return completion. For more information on VAT Services, HM Revenue & Customs enquiries, inspections and visits , Detailed Tax Planning and Retirement.

• Specialist investors • Highly diversified portfolios • Contrarian mindset

We try to understand the big picture We are a knowledge-based company and we invest time in understanding not only our clients’ worlds, but the world as a whole. We discuss what we have learned and evaluate what it all means. We always make an effort to make our decisions based on the bigger picture.

The taxation treatment of barrister’s accounts differs from that for most other individuals. With many years of experience acting for barristers and dealing with barrister’s taxation affairs Bloomer Heaven have built up a wealth of knowledge in this area. In light of the issues currently affecting the profession we now offer a fixed fee basis to all barristers based upon annual fee income. The fee includes:

• Timely service

Rudyard Kipling

• growing your wealth

• reducing your tax liability* • reviewing your mortgage arrangements.

Call Karl Osmond, Partner, on 020 7065 5609 karl.osmond@lighthousewealth.co.uk www.lighthousewealth.co.uk/Partners

* The FCA does not regulate all forms of tax planning. Lighthouse Wealth Limited, trading as Lighthouse Wealth, is an appointed representative of Lighthouse Advisory Services Limited which is authorised and regulated by the Financial Conduct Authority. Lighthouse Wealth Limited is a wholly owned subsidiary of Lighthouse Group plc. Registered in England No. 03970262.. Registered Office: 26 Throgmorton Street, London, EC2N 2AN.

•Accountancy • Taxation • • Consultancy Services • Accountancy

Bookkeeping, financial and accounts preparation, budgeting and forecasting, management accounting, payroll.

Taxation

Value added tax, personal income tax, business income tax, corporation tax and capital gains tax.

Consultancy

Computerised accountancy systems and company secretarial services.

Initial consultation is free 33 Anglesey Court Road, Carshalton SM5 3HZ Business / fax line 020 Mobile 07533

8395 1031 286346

dbeaccounting@hotmail.co.uk Accredited Employer

David Ealing is licensed and regulated by the ATT under license number 3878

09/13 A001628 * Survey by Ledbury Research of 252 Duncan Lawrie clients. Duncan Lawrie Private Banking is a trading name of Duncan Lawrie Holdings Limited and its subsidiaries, represented in the UK by Duncan Lawrie Limited and Duncan Lawrie Asset Management Limited. Registered numbers 998511 and 1160766 respectively and registered in England. Authorised and regulated by the Financial Services Authority. 50740.05_LG_GI_MNW Press_Col_BarristerMag_297x210_v11.indd 1

02/09/2013 10:37

property keeps performing Citroen Wells - Chartered Accountants First class service at aﬀordable prices Expert accounting services for chambers and barristers

With national house prices predicted to rise by 5.5% in 2013 and 28.7% over the next five years*, residential property is now one of the most highly prized and sought-after investments. Chesterton Humberts is one of the UK’s largest estate agencies and property consultancies and offers a full range of services to help investors identify, acquire and manage their investments:

CALL US NOW ON

020 7304 2000

At Citroen Wells we’re all about taking the pressure oﬀ… we believe in providing an unrivalled level of service. So whether you’re a barrister or chambers – we’re here to help. Whatever the ﬁnancial issue, Citroen Wells has the expertise in:

Tax, PAYE and VAT investigations Accounts and tax return preparation Bookkeeping, VAT return and payroll services Constructive tax and ﬁnancial planning Accountants reports for commercial litigation, investigations, asset tracing and insolvency

LETTING Recently named ‘Large Letting Agency of the Year’ by the Sunday Times, we have one of the strongest lettings teams in the country, and are renowned for our excellent customer service.

MANAGEMENT We offer our landlords a hassle-free management service which optimises return and minimises fuss for their rental investments.

Email us using our dedicated Barrister and Chambers e-mail address: barristers@citroenwells.co.uk, visit www.citroenwells.co.uk or call 020 7304 2000 Citroen Wells, Devonshire House, 1 Devonshire Street, London W1W 5DR Ask to speak to David Rodney or David Marks Registered to carry on audit work in the UK and regulated for a range of investment business activities in the UK by the Institute of Chartered Accountants in England and Wales.

PROFESSIONAL SERVICES

SALES Our experienced staff have an in-depth knowledge of their local area which enables them to accurately value and market their clients’ properties and help buyers find their ideal home.

FINANCE Through our recommended mortgage broker, Springtide Capital, our clients can secure some of the best mortgage rates on the market and access special deals that are not available from high street providers.

*Chesterton Humberts Mid-year Forecast, June 2013

Our professional services team advises clients on real estate issues that arise from valuation, dispute resolution, rent review and construction.

LEASEHOLD ENFRANCHISEMENT With specialist expertise in the leasehold reform field, supported by our local offices, we can help leaseholders take a proactive step to protect and enhance the value of their property, providing sensible, realistic and cost effective advice to arrive at the right price or premium. We also act on behalf of some of the largest freeholders, using our local knowledge and expertise to secure the highest premiums.

BLOCK MANAGEMENT Our Block Management team provides management solutions to freeholders, management companies, RTM’s and developers. Our reputation is built on strong relationships.

COMMERCIAL We have a team of Chartered Surveyors who offer specialist advice on all aspects of commercial property to a wide range of clients from private investors and owner occupiers to large institutions, government bodies and corporations.

LAND AND FARMS Our Land and Farms division specialises in managing and marketing rural properties, including estates, land, farms and equestrian properties.

PROPERTY SOURCING Our Property Sourcing service is designed to help clients find and purchase suitable properties across London, whether they are for investment or occupancy.

t: 020 3040 8469 e: enquiries@chestertonhumberts.com w: chestertonhumberts.com

UPM Tilhill Barrister Ad_Layout 1 20/08/2013 10:29 Page 1

Why use a highly qualified, Independent Financial Planner?

A Growing Investment

After all, aren’t they all the same? Well, to a point, Lord Copper, as they say.

Forests – a place to invest your capital UK Forest land has performed remarkably well through these turbulent times. Demand for timber and wood products of all types is forecast to increase dramatically over this decade.

UPM Tilhill, the UK’s largest private forest management company, can provide you with a dedicated woodland investment advice service through our specialist team of advisors.

The UPM Tilhill and Savills Forest Market Report 2012 identified a 49% increase in commercial forest values in the year to September 2012.

We also have a network of professionally qualified foresters serving the UK and can deliver a full management service to forest owners, whatever their requirements.

Recent IPD UK Forest Index data shows a total return of 18.3% over 1 year and 17.7% over 5 years – far better than equities, gilts or commercial property over the same period. Commercial forest investments from £100,000 to £2,000,000+ are available in the UK and benefit from: • No income tax on timber sales. • 100% Inheritance Tax exemption (after 2 years of ownership). • Capital Gains Tax only applies to the land, not the trees. • Suitable for inclusion in a SIPP. They provide: • medium to long term, asset backed investments. • flexible cash flows. • an opportunity to benefit from rising timber values. • green credentials.

Commercial forestry investments are also available through UPM, our parent company in Finland, along with opportunities for purchasing lakeside cabin plots in Finland. If you would like further information, please do not hesitate to contact: Scotland Jason Sinden Tel: 01387 711211 Mob: 07768 702646 Email: jason.sinden@upm.com

England Guy Warren Tel: 01524 272249 Mob: 07789 653816 Email: guy.warren@upm.com

www.upm-tilhill.com

Let’s be clear about this. Money is actually just another tool at your disposal, in the same way as your health and education are, in order to achieve your life’s goals. The reality is that the complexities surrounding money can sometimes become a stumbling block rather than an enabler. Unless we know how much money we need to achieve life’s goals and comfortably secure our future, you may always live with the fear you may not achieve your goals. Many clients ask themselves the following questions: 1. Do I yet have enough money to retire, or work as I choose? If not, when will that point occur? 2. If I had died today, would I have left the legacy and support for those around me that I would like to? 3. Am I getting clear, unbiased, Independent advice about my money? We provide clear advice to make those dreams a reality through Independent, fee only Financial Planning coupled with a transparent approach to Investment Management based on Nobel prize winning research. Our aim is to cut through the complexity of the investment world to allow our clients to feel secure about their future and to feel comfortable in their relationship with us. We pride ourselves that a client’s voice is their security code, not a number. We have been awarded both the prestigious Chartered Financial Planner as well as the Accredited Financial Planning firm designation. At the beginning of 2013 less than 3% of UK firms held these awards. As an independent, fee-based Financial Planning firm, trust and professionalism is at the heart of who we are. Perhaps this passion for professionalism is why we have attracted so many other professionals as clients. They recognise and appreciate the process. But talk is cheap. To see if we can ‘Walk the Walk’, contact us on 0845 123 3889 or phil@perceptiveplanning.co.uk for an initial no obligation discussion at our expense. We will even provide the coffee!

UPM TILHILL

Supplement 2013

UK wealth in Liechtenstein: Privacy in a world of transparency

www.kaiserpartner.com

Kaiser Partner at a Glance

Kaiser Partner is an award-winning, family-owned wealth management group and private bank that combines tradition with a modern, forward-looking business model. Our roots are strong and stretch back to 1931. With a head office in Vaduz, Principality of Liechtenstein, and offices in Zollikon, Switzerland, we bring together a leading trustee firm, a private bank specializing in asset management, an investment advisor registered with the SEC, the US stock market regulator, and a family office for clients looking for holistic services that put their family interests at the forefront. Our multifaceted expertise lets us provide comprehensive, knowledgeable advice and support to private individuals and families on all issues relating to their wealth. We develop tailor-made strategies and solutions to help clients protect and grow their wealth in a rapidly changing world and to deal with asset protection and succession issues in a way that puts the interests of the family at the center. We are supported in our endeavours by an ever-expanding international network of experts in a wide variety of disciplines. Our guiding principle – how we see our mission We help our clients protect, manage and grow their wealth so that ultimately this wealth can deliver the greatest possible benefits – for our clients themselves, for their families and for the communities in which they live and invest. Our strategy – how we fulfil our mission Everything on our planet is interlinked, connected with everything else and in constant motion. We try to recognize, foresee and understand changes, and by applying our expertise we aim to use the power of change to grow wealth. Our approach – how we achieve our objectives We try to understand the big picture We are a knowledge-based company and we invest time in understanding not only our clients’ worlds, but the world as a whole. We discuss what we have learned and evaluate what it all means. We always make an effort to make our decisions based on the bigger picture. We put innovation at the centre As a company we want to and must keep developing – permanently. To manage wealth successfully we need to adapt and realign the tools we use to reflect the march of time and the way circumstances change. We take the long view and remember to heed the old lessons even when situations might require us to take new and as yet uncharted routes. We take responsibility and expect others to do so too We know that “responsibility” is crucial and non-negotiable for ourselves and for each individual client relationship. We take responsibility for everything we do. And we expect our clients to act responsibly too. For us responsibility and sustainability are inextricably linked. We think and act independently Our insights and convictions influence our ideas and guide our actions. We act confidently and in good faith, and our approach helps us understand the times we live in and do the right thing. A short overview • Founded in 1931 • Wealth management group with private bank and trust affiliates • Investment advisor in Switzerland with SEC registration • 200 employees from 20 countries, speaking 10 different languages • Private clients in 20 countries • Worldwide, multidisciplinary network of experts • Head office in Liechtenstein • Offices in Vaduz (Liechtenstein) and Zollikon-Zurich (Switzerland) • CHF 25 billion of assets under administration

Kaiser Partner Trust Services Anstalt Präsidial-Anstalt CorTrust reg. Pflugstrasse 10 9490 Vaduz, Liechtenstein T: +423 236 58 00 F: +423 236 58 01 www.kaiserpartner.com

Kaiser Partner Privatbank AG Herrengasse 23 9490 Vaduz, Liechtenstein T: +423 237 80 00 F: +423 237 80 01 www.kaiserpartner.com

Kaiser Partner Financial Advisors Ltd. Zollikerstrasse 60 8702 Zollikon-Zurich, Switzerland T: +41 44 752 51 11 F: +41 44 752 51 35 www.financial-advisors.ch

A Growing Investment Forests – a place to invest your capital UK Forest land has performed remarkably well through these turbulent times. Demand for timber and wood products of all types is forecast to increase dramatically over this decade.

UPM Tilhill, the UK’s largest private forest management company, can provide you with a dedicated woodland investment advice service through our specialist team of advisors.

The UPM Tilhill and Savills Forest Market Report 2012 identified a 49% increase in commercial forest values in the year to September 2012.

We also have a network of professionally qualified foresters serving the UK and can deliver a full management service to forest owners, whatever their requirements.

England Guy Warren Tel: 01524 272249 Mob: 07789 653816 Email: guy.warren@upm.com

www.upm-tilhill.com

UPM TILHILL

Contents: 6

HMRC’s attack on UK taxpayers using offshore structures to evade tax has been progressing steadily over a number of years. By Andrew Watt, Partner, Watt Busfield Tax Investigations LLP

Investments; a Classic Decision By Nigel Case, owner of the London based Classic Car Club

A Tale of Two Economies James Humphreys, Investment Manager at Duncan Lawrie Private Bank, talks about the changing faces of the UK economy and how bad times turning to good may provide some investors with an exciting opportunity.

Implied beliefs in personal investing By Stuart Fowler, Director, Fowler Drew Limited

Pension lifetime allowance cut – ‘it could be you…’ By Dave Downie, Technical Manager, Standard Life

Investing in history: Why it pays to dig a little deeper By Paul Fraser, founder of Paul Fraser Collectibles

Ensure your finances are in order By Mike Warburton, Director, at leading business and financial advisors Grant Thornton UK LLP.

Five tax-sheltered investments you should consider By By Jason Butler Chartered Financial Planner and Investment Manager at City based Bloomsbury

How much do you pay for your portfolio? By Matthew Aitchison BA (Hons) APFS, Chartered Financial Planner

Inertia works (sort of) A line-up of glitzy business celebrities have signed up to promoting the government’s new pension initiative, but many legal professionals may get left behind. By Laith Khalaf, Head of Corporate Research, Hargreaves Lansdown

Exchange Traded Funds - a 21st Century Investing Revolution Exchange Traded Funds- known as ETFs- are one of the biggest investment modernisations in decades. Launched in the UK in 2001, assets have rocketed to £200Bn throughout Europe and £1.3Tn worldwide. Are ETFs a fad or will they revolutionise how you invest your money? Adam Laird, Passive Investment Manager at Hargreaves Lansdown, explains more. There is no shame in admitting it- busy people don’t have the time to look after a portfolio of shares. We all want our savings so that they grow for when we need them but to choose a mix of companies takes, well, more time and effort than most of us are able or willing to give. That’s why for decades investors have

used

stockbrokers,

investment

managers or funds- such as unit trusts or OEICs- where a professional makes the investment decisions. Now products like Exchange Traded Funds (or ETFs for short) are now changing investment management. A passive approach ETFs have been hugely popular. The first was Standard and Poor’s Depository Receipt (affectionately known as “spiders” because of its SPDR acronym) launched on the New York Stock Exchange in 1993. There are now more than 900 available to UK investors and investors have flocked because they approach investment management from a different angle.

time and dedication to do the research necessary to find them. But the other attraction is the low charges. Indices have rules on which companies to buy and when, eliminating the need for expensive researchers. There is a revolution forming about cost in finance and ETFs are leading the resistance - the average ETF costs under 0.4% each year versus 1.5% for an actively managed fund. Access all areas ETFs have stood out because they gave individuals access to markets where they could not previously invest. ETFs are now available that follow all sorts of assets- from simple funds of blue chip UK shares, to small Latin American companies or Russian corporate bonds.

The vast majority passively follow a stock or bond market index (like the FTSE100 or the S&P500) at low costs. This is called index investing and it is not a new concept- the Investment Management Association estimate that around 9% of UK funds are index trackers. But it has grown in popularity for two reasons:

One area they transformed is commodities. ETCs are Exchange Traded Commodities- a close relative of ETFs which invest in metal, oil or agricultural produce. When the gold price doubled in the 3 years following the collapse of Lehman Brothers in the US, investors piled into gold ETCs. Before ETCs, to invest in gold you had to find a broker who would sell coins or bullion (often at a higher cost than the metal) pay around 0.5% to store and insure your holding each year. There might also be difficulties and charges when selling. Some banks only consider customers with over £1M to commit.

First, it has been shown repeatedly that the average active fund manager, trying to choose companies and themes which will beat the market, does a pretty poor job. Whilst there are some managers who consistently outperform, it takes

Gold ETCs changed all this- they allow investors to buy a product that holds the physical metal itself, for only the cost of the stockbroking commission (often less than £10 with an online trading account) and charges less than 0.3% each year.

personal finance & wealth management supplement the barrister 2013

One mission, many flavours So far straightforward? That has been the appeal. But there is one detail that ETF investors need to understand. There are two different ways that ETFs investphysical and synthetic. Physical ETFs actually hold the investments- buying every (or the majority of) stocks for the index they track. Synthetic ETFs on the other hand use a derivative to give the same return as the index- they also hold (normally unrelated) shares or bonds as collateral to ensure that there is enough to repay investors if the derivative provider got into problems. Synthetic ETFs may seem more complex but there are times when they are better in a portfolio- they tend to be cheaper than physical alternatives, they track more accurately and they can give access to markets where it is difficult for physical ETFs to operate. There is one other product type, called Exchange Traded Notes (or ETNs). Whilst these work in much the same way as ETFs, they are structured as a company loan. Whilst some hold collateral, others do not and your money is at risk if the provider gets into financial difficulty. These products are normally only suitable for institutional or sophisticated investors. The key for investors is to ensure that you understand what you are investing in. ETF providers are leading the field in clarity- particularly since 2008 most providers will declare any important details about how and what they track. Most ETFs will have a factsheet and a Key Investor Information document and your stockbroker should provide these for you.

How you can use ETFs Now I won’t promise that ETFs are the key to good investing, but they are useful tools to help get you there. ETFs trade like shares throughout the day on a stock market making them perfect for getting quick exposure to an attractive area. Think of them like building blockselements that you can use to make a portfolio of your own. Different investors have different strategies and one of the most popular is the “Core and Satellite” approach- where you have a core of low cost ETFs in key areas and invest the remainder in riskier markets or opportunities that present themselves. It is an individual choice but a typical core part of a portfolio might have four areas: • UK companies- The UK is our home market and holding shares in British companies entitles you to a share of their profits. •

UK Corporate Bonds- Corporate

Bonds are loans made to companies and investors receive a regular interest payment from holding them. • Overseas shares- In our global economy, it is important to look beyond the UK and there are a number of broad ETFs covering both developed and emerging overseas markets. • Gilts- Gilts are UK government debt which is considered very low risk though the returns are low too- currently below inflation. I would suggest that most investors keep around 40% of the core in UK companies, 25% in corporate bonds and split the remainder between overseas shares and gilts- any investor should have a minimum of 10% in foreign companies and more adventurous investors will increase this further. In the end the decision is yours but whether you choose to manage your own investments through a stockbroker or

use a financial advisor, make sure that ETFs are on the table.

Risk Warning: The value of any investment can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This article is not personal advice based on your circumstances, if you are unsure about the suitability of an investment please speak to a financial advisor Adam Laird Passive Investment Manager Hargreaves Lansdown One College Square South, Anchor Road, Bristol, BS1 5HL tel: 0117 980 9884 web: www.HL.co.uk

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personal finance & wealth management supplement the barrister 2013

HMRC’s attack on UK taxpayers using offshore structures to evade tax has been progressing steadily over a number of years. By Andrew Watt, Partner, Watt Busfield Tax Investigations LLP High profile investigations into customers of Irish banks in

The Manx Disclosure Facility (MDF) – and those relating to

the Isle of Man preceded the Offshore Disclosure Facility in

Jersey and Guernsey – run from 6 April 2013 to 30 September

2007. This was followed two years later by the New Disclosure

2016 at which time information will begin to be exchanged

Opportunity, hot on the heels of which came the Liechtenstein

automatically. The benefits include-

Disclosure Facility (LDF) prompted by the leak of customer data from one of the leading banks in the Principality. There then followed a number of disclosure campaigns aimed at various professions and trades such as doctors, dentists and plumbers. A landmark agreement with Switzerland signed in October 2011 designed to flush out untaxed funds in financial institutions there culminated on 31 May 2013 with amounts being deducted from undeclared accounts and paid over to the UK Exchequer. It is distinctly possible that over the next few

•

A 10% penalty for years up to and including 2007/08

and 20% for 2008/09 onwards. In cases of failure to notify liability, the penalty for years to 2008/09 will be 10% and 20% for 2009/10. For 2010/11 onwards the new offshore penalties legislation applies which means that liabilities relating to Guernsey and the Isle of Man will be subject to a 20% penalty while those relating to Jersey will be penalised at 30%. •

No penalty where reasonable care has been taken.

•

The assessment period is limited to accounting/tax

years similar agreements will be struck with other havens to which funds were moved prior to the May deadline.

years commencing on or after 1 April 1999. However, where Events this year have been moving at breakneck speed. In February the UK and Isle of Man Governments signed a memorandum of understanding underpinning a disclosure facility similar, but not identical, to the LDF. This was followed by similar arrangements with Guernsey and Jersey. And last month saw a commitment from the Overseas Territories such as Gibraltar, Bermuda, Cayman Islands and the British Virgin Islands(BVI) to sign up to the Government’s strategy on global tax transparency. Coincidentally, at about the same

the disclosure relates to a bank account outside the UK or the relevant Territory, which was opened through a UK branch or agency of the bank, the assessment period is 20 years from the beginning of the tax year in which the disclosure is made. In exceptional cases, where reasonable care is demonstrated and an incorrect return has been submitted or where the offence is failure to notify and reasonable excuse for the failure is demonstrated, the assessment period is 4 full tax years from the end of the tax year in which the disclosure is made.

time, national newspapers published details of highly sensitive information leaked from financial institutions in the BVI. Finally,

•

Singapore has announced that it is to implement stricter tax

This is extremely useful for agreeing possibly contentious

evasion measures as part of which consideration will be given

issues

to ceasing to act for many of their banks’ wealthiest clients.

domicile

While this will undoubtedly lead to an increase in the number

of suspicious transaction reports it will not in the short term

involve automatic exchanges of sensitive information. However,

care’,

it would be surprising if such measures are not eventually

the

implemented.

submitted thereby

personal finance & wealth management supplement the barrister 2013

A single point of contact within HMRC for disclosures.

such

the

status concept

‘reasonable before

disclosure

The articles in this supplement are intended for general information only and should not be construed as advice under the Financial Services and Markets Act

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limiting the possibility of time consuming enquiries on the

a number of investors in some of these schemes. And a few

report.

days ago it has been reported that the firm’s CEO and a senior colleague have been charged with offences involving abuse of

•

‘No names’ contact with HMRC prior to registration for

advice on matters connected with the facility. Anyone who has been the subject of an in depth investigation prior to 6 April 2013 and did not make a full disclosure of offshore investments can participate in the relevant facility, but will not be entitled to favourable terms on penalties or limited assessable period. Conversely anyone who has been notified prior to 6 April 2013 that he is to be so investigated is simply not entitled to participate in the facility if that investigation was not concluded before 6 April. An ‘in depth’ investigation in this context is one which is supported by HMRC’s investigation powers. It includes those which ended with a letter of offer,

the tax rules surrounding charitable giving. And to complete this account of HMRC’s anti-avoidance drive HMRC has been issuing Code of Practice 9 investigation notices on many of the remaining investors in the firm’s schemes alleging serious tax fraud. The investigation process allows 60 days from service of the notice for the target to make an outline disclosure of any tax fraud committed – not necessarily solely related to the particular avoidance scheme. Those who entered such schemes on the basis of assurances , quite possible supported by legal opinion, from a reputable provider and from other professionals including independent

financial advisers will

need to take care as to how they respond to HMRC’s challenge.

whether or not a penalty was charged, a statement of assets and liabilities and a certificate of full disclosure. Andrew Watt Unlike the LDF, these facilities do not provide automatic immunity from prosecution. However, HMRC have said that they are extremely unlikely to start a criminal investigation for a tax-related offence if a full and accurate disclosure is made and the source of the funds is not ‘criminal activity’ other than tax evasion. Anyone with undeclared profits or gains outside of the UK (other than in Switzerland) can acquire an asset in one of the territories before 31 December 2013 and be eligible for the full benefits of the relevant facility. This is not intended to be a comprehensive account of the three disclosure facilities relating to the Crown Dependencies and anyone who thinks they may be entitled to participate and wishes to do so, should take their own independent advice. The initiatives mentioned above highlight HMRC’s determination to clamp down on serious tax fraud. However, they are also pursuing aggressive avoidance on a quite unprecedented scale. For example, raids were carried out some time ago on offices on the Isle of Man and in the UK on a high profile firm of tax consultants which provides widely marketed avoidance schemes, in the course of which arrests were made. In recent months HMRC announced that it was criminally investigating

personal finance & wealth management supplement the barrister 2013

Partner, Watt Busfield Tax Investigations LLP Andrew@wattbusfield.co.uk

Investments; a Classic Decision By Nigel Case, owner of the London based Classic Car Club

On the 12th of July at the Bonhams Auction at Goodwood Festival of Speed, a Mercedes Benz W196 Grand Prix car, once driven by the legendary racing driver Juan Fangio, sold to an anonymous bidder for £19.6 million. This was a world record high for a car sold by public auction fuelling the ‘gold rush’ flames of classic car investment. However this and other high profile sales do not really reflect the ‘real’ classic car experience. The main issue with cars as assets is that they are big cumbersome things and therefore difficult to store and maintain. Plus, unlike their modern counterparts, they rapidly deteriorate if they are not properly cared for. In addition to dry, secure storage they need to be insured, taxed, serviced and maintained and most importantly they need to be used. There is nothing worse than a car sitting around for long periods of time without being started regularly and gently exercised. If you own a Mercedes 280 SL Pagoda it is likely it has at least doubled in value over the last 10 years but on the flipside it is also likely you have spent at least this amount looking after it. This equation becomes more acute the less the car is worth. A good Triumph Stag is a mighty fine car. A creamy smooth 3-litre V8 engine; a four-seat convertible with a hard top for the winter. It is just about the perfect classic car, handsome and

great to drive with plentiful part supply. But you still need to put it in a nice dry garage, insure, service MOT and, if it is post 1972, pay for road tax. Unlike the Mercedes SL time hasn’t been quite so kind to the dear old Triumph Stag. The same ten-year period has only seen only a modest rise in values and you can still pick up a fantastic example for around £10k. As with most things in life there is a fair degree of luck in choosing the right car in the first place. Ferrari 246 Dino, Porsche 911 RS, Aston Martin DB5 while not exactly cheap a decade ago, have risen massively in value. If you bought a poor car in the first place you would have sunk a small fortune into putting it right but you would now have an extremely valuable and desirable car. The trick is to choose the right car and then do your homework before committing large sums of your hard earned money. For specialist advice, Jonathan Silverman a commercial partner with City law firm Silverman Sherliker LLP, who for a number of years has advised both trade and private investors active in the classic car market could be your first port of call. Last year he was involved in the transaction to sell a Ferrari 250 GTO once campaigned by Stirling Moss. It sold for an undisclosed figure to a US buyer, where the price is reported to have excessed $20m.

personal finance & wealth management supplement the barrister 2013

The best advice is that if the smell of oil and petroleum don’t set your pulse-a-racing steer well clear and buy something that does. A far better proposition as an interesting alternative investment would be easy to store and maintain: something with an emotional attachment and a good following. Wristwatches, art or cameras are great examples. While these items require a modicum of maintenance this is nowhere near as onerous as with cars. The primary reason for buying a classic car, with all of the pain and heartache that comes along for the ride, should be for the sheer bloody love of it!

“The concern is that clients even at the ‘investment level’ tend to let ‘their heart rule their head’ and accept blindly statements made to them by vendors about a car’s history and condition”.

Nigel Case is the owner of the London based Classic Car Club a private members’ club that runs a large fleet of classic cars for its members to enjoy as if they were their own without any of the hassles and commitments of ownership. From Aston Martins, E-Type Jaguars and Mercedes SL Pagodas to Mini Coopers, Ford Mustangs and Porsche 911s the club has around fifty cars that members drive through use of a simple point system.

At this end of the market the primary consideration is provenance. Huge value can be added to a car if it has an interesting history or a successful racing career. Equally small differences in specification or model can make a big difference to the purchase price. As such meticulous research and thorough investigation into the history of the car, checks on title and professional purchase agreements are essential, which is why the services of experienced specialists such as Mr. Silverman are so important. It also follows that post purchase investigation and preparation of a history file can add significant value to a car that has poorly prepared documentation.

If your heart is absolutely set on ownership the club’s new specialist storage facility, Car Vault London can help. They have dehumidified chambers with battery conditioners and on site mechanics to check the levels on your four-wheeled beauty before you venture out onto the highways and byways. They can even arrange deliveries and collections and offer a range of additional services. Jonathan Silverman has been a member of the Classic Car Club since 1995 and is also an avid collector of cameras. He can be reached on: 020 7749 2700 - jtrs@silvermansherliker.co.uk This article is about investment in classic cars but it has only really concerned itself with monetary matters. A classic car is far more of an emotional investment from which sometimes, with a prevailing wind of good fortune, after all of the expense of maintenance and storage, you might just turn a profit. If you aim to buy a car purely to put it away for posterity or indeed prosperity consider the cost implications long and hard before doing so. Buying a car simply with a view to making money is frankly missing the point.

personal finance & wealth management supplement the barrister 2013

www.ClassicCarClub.co.uk www.CarVaultLondon.co.uk info@classiccarclub.co.uk 020 7490 9090

To continue the theme and paraphrase Dickens, we are in a

it as: “It was the best of times, it was the worst of times, it was

unique position where ‘we have everything before us and yet we

the age of wisdom, it was the age of foolishness…”

have nothing before us’. Economic recovery means very little if the underlying structure of our country remains in disrepair. As

OK, so Dickens wasn’t actually talking about the current

a nation we consume more than we produce, our population

economy, but there are many reasons why his description of

is ageing fast and our education system is falling behind our

the duality of 18th century Europe still applies today.

international peers.

Six years ago when the financial crisis began, a deep gloom

However in the comparatively small rise and fall of economic

settled over the British economy. The banking sector in

cycles, there are opportunities all around for savvy investors

particular was hit hard. The crisis, which began with queues

looking to take advantage of a market in the earlier stages

forming outside branches of Northern Rock, soon turned to

of recovery. Below, the investment experts at Duncan Lawrie

the drying up of consumer lending, the collapse of high street

Private Bank have put together a short summary of a number

retailers and widespread unemployment.

of markets and guide you through those that are seeing better times and those that might see the worst:

Since then however, what Dickens may have referred to as a metaphorical ‘winter of despair’ has given way to a ‘spring of hope’, or what is more commonly referred to in modern parlance as the ‘green shoots’ of economic recovery. The recovery, as with the crisis, has started with the banks which went through a period of internal restructuring and tighter regulation. The banking system is both better capitalised and supervised thanks to various domestic and international

TAX RETURNS & ACCOUNTS FOR BARRISTERS

initiatives and because Lloyds Banking Group’s shares have

• Fixed fees

risen above the Government’s purchase price, it is only a matter

• Meetings in Chambers

of time before the Government begins to sell down its stake. Elsewhere, with an election now two years away, George

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Osborne has turned to the tried and tested method of getting the UK economy moving: namely, stimulating the housing market. The belief is that a buoyant housing market and improving consumer confidence will be fillips for other areas of the economy. However, before becoming too optimistic, it is prudent to consider what might go wrong. Firstly, while the economy

Call Martyn Bradish for a free, no obligation meeting Visit the barristers & judges page in the services section of our website at www.bradish.co.uk

is improving, it is still far from strong. The Government’s measures to stimulate housing demand have not been met by increased supply, so a housing bubble could inflate. In addition, the UK could be affected by the considerable international risks to the global economy. Any sudden economic shocks would hit the banking sector hard, sending our economy hurtling back to the start like an incredulous game of snakes and ladders.

31 Dugdale Hill Lane, Potters Bar, Herts EN6 2DP T: 01707 850969 www.bradish.co.uk mail@bradish.co.uk

personal finance & wealth management supplement the barrister 2013

The Banks

Bernanke sparked concerns that US interest rates would rise

It is too early to say that the banking industry is fully

sooner than expected. Cold water has subsequently been poured

transformed. There is still plenty of work to do, particularly for

on those expectations, and globally fixed interest markets have

Royal Bank of Scotland, but also for the likes of Barclays and

improved as a result. Corporate bond indices were up almost

some of the building societies. Most are still in the process of

2% over the month.

ridding themselves of poor quality assets and reducing leverage. However, they are in a much better position to deal with these

Large Caps

threats than in 2007 and enough has been done for us to be

Corporate earnings growth has been broadly positive. By the

more optimistic about the sector than at any time in the last

end of July, nearly half the US large caps had reported second

five years.

quarter earnings, and over half of them beat expectations. This bodes well for the remainder of the earnings season and

The Eurozone

a parallel trend is expected for the UK market. Companies

One year on from European Central Bank (ECB) President Mario

remain cautious, but more optimistic in their outlook, which

Draghi’s statement that he would do whatever it takes to save

can be seen most clearly in the pick-up in M&A activity in

the single currency, he has not yet had to intervene in sovereign

recent months. Looking ahead, investors will continue to watch

bond markets. Trusting that the ECB would stand by as lender

corporate margins for signs of weakness or a return to the long-

of last resort has boosted sentiment in the Eurozone: European

run average. Global corporate earnings are expected to grow

equity markets are up 36% in sterling terms since last July. Over

9.0% in 2013 and 12.0% in 2014.

the same period, the UK market has climbed around 25%. Currencies UK Stocks

In currencies, the yen remains the standout underperformer,

During July, defensive areas of the UK stock market, such

having fallen over 20.0% against the US dollar. The Government is

as pharmaceuticals and food producers, underperformed

attempting to regain the country’s international competitiveness

the index, as investors took advantage of weakness in more

and drive up tax receipts. Inflation expectations for 2014 are

economically sensitive sectors that had suffered during the risk-

around the Government’s 2.0% target, which suggests that for

averse markets of June. The theme of mid cap outperformance

the moment the market is willing to believe that Prime Minister

continued (‘cap’ meaning the size of a publically quoted

Abe will be successful in reflating the economy.

company and referring to the market value of the issued share capital), while small caps performed in line with large caps.

So while many retail investors see opportunities only when the

Overall, the UK market finished up nearly 7% by the end of the

economy is firing on all cylinders, the truth is that some of the

summer.

best gains are actually to be made on the road to recovery.

The International Market

Understanding the market in which you are investing is critical;

In international equity markets the summer has been mixed;

investment in capital markets comes with risks but the rewards

in Japan the market took a pause after a strong run this year.

are commensurately higher. This type of investing is not for

In contrast the US equity market rose by a little over 5%, while

everyone and seeking out good investment advice is advisable.

Asia Pacific (excluding Japan) saw its equity index rise 2.2% in

However, if done correctly, every investor has a chance to find

sterling terms.

‘the golden thread’ within the current market.

Overall there has been a striking divergence in performance between the developed world and the Emerging markets. The former have been growing in confidence, in step with their brighter economic environment, whilst the latter, have taken a hit , especially India, Indonesia and Turkey which are suffering from the consequences of their current account deficits and collapsing currencies. Fixed Interest In sterling fixed interest markets, July saw yields come down after a spike in June, when US Federal Reserve Chairman Ben

personal finance & wealth management supplement the barrister 2013

Five tax-sheltered investments you should consider By By Jason Butler Chartered Financial Planner and Investment Manager at City based Bloomsbury This year a new General Anti-Abuse Rule (GAAR) comes into

on benefits of 45%/40; 40%/20% or 20%/nil respectively;

effect, with the aim of reducing tax avoidance. Tax avoidance

involves planning which, while legal, was “not what parliament

a tax-free lump sum (the standard maximum is currently 25%),

intended” and relies on exploiting loopholes and errors arising

even if you do pay the same tax rate on the pension benefits as

in the drafting of legislation. The GAAR is a catch-all means by

you received on the contribution;

which HM Revenue & Customs (HMRC) can stop tax avoidance and this sits on top of a range of other anti-avoidance legislation at HMRC’s disposal. In this age of austerity and the post-GAAR world, ‘tried and tested’ is very much the order of the day when it comes to tax planning. What follows is a quick reminder of the features of the main, non-aggressive, tax-favoured investments worth considering. Pension contributions Pension contributions make sense if: -

you obtain a higher rate of tax relief on the contribution

than you expect to pay on the benefits, i.e. tax relief/income tax

you are permitted to take a proportion of the fund as

your fund is unlikely to exceed the lifetime allowance of

£1.25m (from 6th April 2014), or £1.5m/1.8m if fixed protection applies; -

you are happy to restrict access to the benefits until

age 55; -

you do not have guaranteed pension income of £20,000

per annum and you are happy to take at least 75% of the fund as a taxable income; -

you do have guaranteed pension income of £20,000

per annum and you are happy to take at least 75% of the fund as a lump sum subject to income tax; -

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personal finance & wealth management supplement the barrister 2013

attractive than the alternative of holding the capital outside the

You can also invest a further £1m in 2013/14 and elect to

pension.

carry this back to the 2012/13 tax year, or defer making an EIS

Any pension contribution to be made in the 2013/14 tax year

investment until 2014/15 and elect to carry up to £1m of this

must have been made by 5th April 2014. Personal contributions

back to 2013/14, which might be useful if cashflow is tight.

to defined contribution schemes are paid net of basic rate tax,

Additional features of EIS investment include:

i.e. £800 becomes £1,000 in the pension fund, and has the effect

of expanding the basic rate income tax band. Contributions to

to the shares being held for three years;

defined benefit schemes are paid net of the member’s highest marginal rate. The effect of the contribution can be to: -

reduce the amount of income tax paid at the higher

Income tax relief on investment into an EIS is subject EIS shares are exempt from inheritance tax once held

for two years; -

Once held for three years, the EIS shares could be

transferred to a discretionary trust and retained for a further

and additional rates;

seven years before being sold to secure further permanent IHT

savings;

permit reclamation of the personal allowance to the

extent that ‘adjusted net income’ falls below the £100,000

threshold and thereby provide effective relief of 60%;

in excess of the original net of tax relief cost, i.e. if the disposal

value is less than 70% of the gross cost;

reduce or avoid the child benefit tax charge to the

Income tax relief is given if you incur a loss on disposal

extent that net adjusted income falls below £60,000;

under the new tax relief restrictions which apply to other losses

reduce the rate of capital gains tax on taxable gains

Income tax loss relief on EIS shares is not included

arising elsewhere from 28% to 18%.

from 6th April 2013;

A personal contribution must not exceed 100% of net relevant

earnings, which is basically most forms of income from

three years are free of tax;

employment and self-employment (this includes trading income

from structures such as film partnerships). Contributions must

assets up to three years before or up to one year after the EIS

be within the annual allowance of £50,000 (although this falls

investment may be deferred to the extent that the gains before

to £40,000 in 2014/15) and any carried forward unused annual

tax are re-invested into the EIS;

allowance from the three previous tax years in which the investor owned a registered pension scheme. For the purposes of determining annual allowance, each contribution is assessed based on the pension input period (PIP) end date of the pension plan. New personal plans default to 5th April but an election can be made to bring the PIP forward to another date. It is essential to know the PIP end date which applied to previous contributions, so that you can accurately calculate the unused annual allowance and thus the maximum contribution permissible. With the right planning it is possible to make a contribution of up to £240,000 in the 2013/14 tax year. If you pay income tax at 45% it makes sense to maximise tax relief on contributions if

Capital gains arising from EIS shares disposed after Capital gains arising from either the disposal of other

Any capital gains which have been deferred by re-

investment into the EIS will be washed out in the event of your death; -

Most EIS shares qualify for business investment relief,

which allows UK resident non-domiciled individuals to remit foreign income or gains to make their investment without triggering a UK taxable remittance. The following shows the net cash cost to an investor’s estate of £100,000 invested into an EIS which has been held for two years and against which capital gains tax deferral relief had been claimed: Gross investment £100,000

you expect total taxable income from all sources in retirement

Less income tax (IT) relief

(£30,000)

to be at a lower rate than this.

Net cost after IT relief

£70,000

CGT deferral relief

(£28,000)

Enterprise investment schemes (EIS)

Net cost after CGT relief

£42,000

Investment of up to £1m into the shares of one or more EIS

IHT saving on death

(£40,000)

made in the 2013/14 tax year will qualify for income tax relief

Net cost to the estate

£2,000

of up to 30% of the gross amount invested, to the extent that you pay income tax (no relief is given for national insurance). You must obtain an EIS3 certificate from the EIS company, which will be issued once it has been trading for four months, before you can claim relief.

personal finance & wealth management supplement the barrister 2013

There are several lower risk EIS offerings which focus on capital preservation and the potential for returns slightly above deposit interest by engaging in trading activities which are highly

You be the Judge – a bank that’s right for you? You don’t need to be told, but your finances are not always straightforward and, in terms of life’s priorities, they often come after cases, family and friends. With limited time to manage your money, whether chasing income, sorting out tax, paying chambers expenses or planning your retirement – when do you do it all? You need someone when you need them; someone who can deal with your financial needs professionally and promptly; someone who understands your world, de facto.

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The case for banking with Duncan Lawrie Private Bank… As a Duncan Lawrie banking client you are able to phone or meet your Bank Manager when you want. Knowing how busy you are, they will be happy to visit you in Chambers – even early evening when you have finished work. On average, Duncan Lawrie’s Bank Managers have been there for over 10 years – and so, from the start, you can be sure they will be committed to supporting you with integrity, professionalism and thoroughness, and you can be confident this connection will last. You may have non-standard banking needs or finances that need a high degree of individual attention, but this is not unusual with Duncan Lawrie clients. Their traditional, one to one personal service means they can be as accommodating as possible. Because your Bank Manager is familiar with your financial position, they can make decisions (about loans, for example) on an individual basis, so they can give you an answer fast. Duncan Lawrie’s banking service offers all this and more:

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cash-generative including things like film tax credit financing,

least one year. Areas include Northern Ireland, Birmingham,

green energy, very short term development finance and football

Liverpool, north Cornwall, parts of South Wales, northern

season ticket funding. If you only receive back 70p in the pound

Scotland and the north east.

then you will have made nothing. If you receive back 100p in

BPRA is based on the old enterprise zone legislation, was first

the pound the return is in the region of 9% pa and if you receive

introduced in April 2007 and was due to run until April 2011,

back the targeted 120p in the pound the return would be in the

although the 2011 budget extended BPRA by a further five

region of 15%pa.

years to April 2016. It has all the usual risks associated with investment in commercial property including falls in value,

Seed EIS (SEIS) This new relief broadly follows the rules for general EIS but with a few notable differences: -

Maximum individual investment is £100,000;

Tax relief of up to 50% of investment to the extent that

investor pays income tax; -

50% of capital gains from other asset disposals arising

in 2013/14, which are reinvested in SEIS in either the 2013/14 or 2014/15 tax years, are permanently exempt from tax; -

Shareholder must not have more than 30% voting

shares; -

illiquidity, liability for business rates, tenant failure and cash calls if borrowing covenants are breached. Qualifying expenditure, which does not include the cost of the land and building or any new building work, qualifies for 100% relief to the extent of investors’ income tax liability. Investors must retain their interest in the property for at least seven years from practical completion to avoid a clawback of income tax relief. Take, for example, a £10m project where the existing building costs £2m and the refurbishment work costs £8m. The £8m would qualify for income tax relief but the £2m building cost would not. This would be classed as an 80% qualifying project.

Maximum fund raising per SEIS is £150,000.

The inclusion of loan finance in the transaction, together with a

There are a number of ‘packaged’ SEIS offerings, primarily

high percentage of qualifying expenditure, would make a BPRA

involved in development work associated with things like smart

investment cash positive at outset as the following real example

phone applications, film scripts and live entertainment events.

illustrates:

If original capital is preserved then these would represent a

Developer loan £67,000

very attractive investment. However, for most people, given

Investor equity £33,000

the current small investment limit, SEIS has limited application other than for start-up businesses being funded by family and friends. HMRC has publicly suggested that it is highly likely that the capital gains re-investment exemption will be extended to the

Gross investment £100,000

Qualifying expenditure @ 80% = £80,000

Tax relief at 50% =

£40,000

Net cost (benefit) to investor

(£7,000)

2013/14 tax year. If this does happen, together with a higher overall investment limit, then more attractive opportunities are

BPRA is a highly specialised property investment which is

likely and as a result take up of this tax shelter should increase.

subject to complex rules so you should expect a few hurdles

Venture capital trusts (VCTs)

before you receive any relief. That said, it is a non-aggressive

VCTs offer income tax relief for the tax year 2013/14 at 30% for

tax relief which is actively encouraged to generate economic

an investment of up to £200,000 in new shares, with relief being

activity in disadvantaged areas. There have been a number of

restricted to the amount of tax otherwise payable. There is no

BPRAs which offered attractive benefits from a range of uses

ability to defer CGT as with an EIS investment but dividends and

including car parks, hotels, and data centres, to name but a

capital gains generated on amounts invested within the annual

few. If you pay income tax at 50% and you can find a decent

subscription limit are tax-free. The shares have to be retained

investment with a high qualifying expenditure amount and

for at least five years to avoid reclamation of the income tax

favourable loan finance, it could be well worth considering.

relief, making VCTs generally less attractive than EIS. Jason Butler is a Chartered Financial Planner and Investment Business premises renovation allowance (BPRA) Business premises renovation allowance (BPRA) is an income tax relief given on qualifying expenditure associated with the refurbishment of existing commercial property located in certain areas of the UK and which has been empty for at

personal finance & wealth management supplement the barrister 2013

Manager at City based Bloomsbury. His bestselling book – The Financial Times Guide to Wealth Management - is available from Amazon and larger bookshops. Jason can be contacted on email: truewealth@bloomsburywealth.co.uk Tel: 020 7965 4480.

How much do you pay for your portfolio? By Matthew Aitchison BA (Hons) APFS, Chartered Financial Planner As of the 31st December 2012, commission paid out on investment and pension products was officially banned in the UK, through the advent of the Retail Distribution Review (RDR). This has meant that any new investment or pension advice has had to be conducted on a fee basis only. Coupled with this, the Financial Conduct Authority has put in place a ban on ‘bundled’ rebates passing from fund managers to third party providers due to come into force in 2016. This will complete the circle with existing investments needing to be moved to a clear and transparent fee basis. The benefits of fee over commission was espoused for many a month in the run up to the RDR implementation date. As a result, the various fee structures and levels of fee that an adviser can take have also been scrutinised. However, the recent discussions I have had with new clients has highlighted the lack of understanding as to how this fits in with the total cost of ownership involved in a portfolio. Fund Total Expense Ratio (TER) When you buy units in a fund, you pass your money to a fund manager who invests it in line with a set remit (for example, to achieve capital growth through investing in companies that are listed on the major UK stock exchanges.) In return for fulfilling this remit (hopefully) the fund manager charges an Annual Management Charge (AMC).

Various studies have been made into this opaque area. One of the most reputable ‘The Price of Retail Investing in the UK’ (iii), was published by the Financial Services Authority on the cost of investing in the UK. They found that the round cost of buying and selling a share in the UK could amount to 1.80%. Thus, if a fund had a portfolio turnover of 100% (they effectively replaced all holdings in their portfolio) it would add 1.80% to their TER. More recently, a study was conducted that estimated active UK equity funds incurred additional costs of 0.97% per annum (iv). Even if we take the lower figure, this means the average UK equity fund is likely to cost investors 2.63% per annum. This, although a small number, can make a huge difference. The graph below shows the power of compound returns and the difference that a fee of 1% per annum, 2% per annum and 3% per annum can make on your overall return. As you can see, for a £1 million portfolio over a 30 year period, a higher fee percentage could make a significant difference in the final portfolio value. Obviously, this doesn’t account for differences in performance. However, it does show what a large hurdle the cost of investing can be, and how small percentage figures can make a huge difference in returns.

These fees can differ greatly depending on the approach of that particular fund. Actively managed funds as a group have an average TER of 1.66% (i) per annum (pa); however, these can be as high as 5% (ii) pa. When you compare this to passive UK equity funds which have TER’s as low as 0.15% pa, there is a huge difference. The higher the TER, the higher the hurdle a fund manager has to clear before adding any value. When you factor in the weight of evidence against stock picking and market timing, this can mean that the TER may becomes a huge drag on performance.

Assumed 6.5% annualised return over 30 years

Hidden Costs

Custodian Fees

Unfortunately the TER does not tell the whole story. There are a number of hidden costs that can add up to an even higher hurdle. These can include trading commissions and taxes, bid/ offer spread (the difference between buying and selling prices) and market impact costs.

A tendency that is gathering pace in the UK is the use of wrap platforms and fund supermarkets as custodians by IFA’s, wealth managers and financial planners. Using them can bring a number of benefits such as reduced administration, open architecture access to investments, online access and personal finance & wealth management supplement the barrister 2013

economies of scale. However, they do add a layer of charges. The good news is that the economies of scale they can achieve often offsets their charge. For example, often a large platform can negotiate a saving of around 0.75% per annum on UK equity funds in return for a charge of between 0.25% and 0.50% per annum. However, it is worth considering any other charges that a platform may levy such as transaction fees and report fees. If you are using a good adviser, they should be looking at these charges and balancing them against financial strength, efficient administration and other such factors that are important when choosing a custodian.

However the figures tell a different story… Client A Client B Portfolio Size £500,000 £500,000 Funds TER 0.91% * 0.35% Hidden Charges 0.97% 0.10% Custodian Fees 0.30% 0.30% Wrapper Charges £150 £150 Adviser Fee 0.50% 1.00% Total Cost of Ownership £13,550 pa or 2.71% pa £8,900 pa or 1.78% pa * 1.66% reduced by 0.75% due to platform deals

Wrapper Fees An often overlooked cost is the fees involved with putting your money into a tax efficient wrapper such as an ISA, investment bond or pension. These have additional layers of charges, however, should be kept to a minimum where possible. These can be expressed as a fixed amount or a percentage. Where the investments available are on an open architecture platform, the wrapper becomes commoditised so should be kept as cheap as possible. Adviser Fee Your adviser will levy a fee for advising you. This can range from 0.50% per annum to 1.50% per annum. It is important to understand what is included within your annual fee payment to your adviser. For instance, where they recommend a change to your portfolio, do your annual fees cover this or does your adviser charge transaction fees to make the change? Are you limited to a number of meetings? Do they include ongoing financial planning in this figure? Do you get a structured proactive service? There are so many possibilities, both good value and poor value that it is important to understand exactly what is and isn’t covered within your adviser’s ongoing fee. Only then can you make a judgement call as to whether or not you receive value for money, whether you should pay a lower or higher adviser fee. Total Cost of Ownership When you add all of these costs together, you establish your total cost of ownership. To illustrate how this works, I have created two fictitious clients each with a portfolio of £500,000. Client A is invested in an actively managed portfolio with an adviser who charges 0.5% per annum; whilst client B is invested in a low cost passively managed portfolio with an adviser who charges 1.0% per annum. Without looking into the total cost, it may seem that client A is paying much less than client B.

personal finance & wealth management supplement the barrister 2013

At face value, without the above information, an investor may choose the adviser client A uses, as they charge half of client B’s adviser. However, even though client B pays his/her adviser a lot more than client A, client B pays an overall charge that is 0.93% lower than client A (equating to £4,650 lower). As the portfolio grows, this will result in a larger monetary difference over time. Obviously, charges only tell part of the story. It is important to consider the other added value benefits that either client may be receiving from his/her adviser on an ongoing basis. Whatever your adviser charges you, whether it be 0.5% or 1.0% per annum, he or she should be adding value for their fee. However, by enjoying a lower charge, client B has a lower hurdle to surmount before experiencing positive gains and, in theory, achieving his/her goals. The above example shows why it is so important to understand the total cost of a portfolio, not just the headline adviser charge. When reviewing a new or existing adviser, it is important to find out what value they will deliver for their, as well as what you are likely to pay (or are paying) for every aspect of your portfolio, not just focusing on comparing adviser charges. Your adviser should be able to give you details of all the above charges (hidden charges are more difficult to pin down). If they can’t provide these details, it may be time to appoint a new adviser who can. (i) (ii) (iii) (iv)

Moisson E & Kreider J (2009), Fund Expenses: A Transatlantic Study Morningstar search conducted on 2 July 2013 James K (2005), The Price of Retail Investing in the UK Miller A & Miller G (2012), Promoting Trust and Transparency in the UK Investment Industry

Matthew Aitchison BA (Hons) APFS Chartered Financial Planner T: 01234 851 797 M: 07854 769 815 maitchison@clearvisionfp.co.uk www.clearvisionfp.co.uk

Investing in history: Why it pays to dig a little deeper By Paul Fraser, founder of Paul Fraser Collectibles For those looking to hedge their investments this year, the

The figures appear to confirm a view that has been gathering

2013 Knight Frank Luxury Investment Index makes compelling

momentum of late: that the collectibles sector offers rich

reading. It reveals eight historical asset sectors that beat the

pickings for investors. But caution is needed. I am a collectibles

FTSE100 between 2002 and 2012.

dealer, and have been so for more than 35 years. But sweeping

1 Year 5 Year 10 Year

figures such as the above can be misleading to the prospective

Classic Cars

+23%

buyer, especially those new to the sector.

Coins

+25% +93% +248%

Those numbers suggest that when taken as a whole, the entire

Stamps +9% +72% +216%

stamps market has grown by 216% in the past 10 years. In fact,

Fine Art 0%

+92%

+199%

the statistics only relate to 30 of the rarest Great Britain stamps.

Fine Wine

-19%

+7%

+166%

What’s more, the figures quoted are for the finest examples of

Jewellery

+9% +77% +140%

those 30, as opposed to the less desirable offerings of the type,

Chinese Ceramics

+0.4% +54%

which would tend to provide far less-attractive price rises.

Watches +8%

+27%

Furniture

-9% -12% -18%

Total:

+6%

+115% +395%

+85%

+76% +64% +175%

Source: Knight Frank To put those numbers into perspective, the FTSE100 grew by just 50% between 2002 and 2012, and actually fell by 9% in the past five years during the global economic crisis. “Where investments of passion really seem to show their value is when mainstream investments are most vulnerable,” says the report. “Over the past five years, which have included the collapse of Lehman’s and the ensuing credit crunch and economic slowdown, the index returned solid growth of 64%.

A collectibles dealer saying “don’t buy collectibles”? So what have we got here, a collectibles dealer saying “don’t buy collectibles”? Not a bit of it. What I am saying is that it is

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personal finance & wealth management supplement the barrister 2013

only at the highest echelons of the sector, among the rarest,

of the market continue to rise in value? I believe it can. Past

most desirable pieces, that you should be looking to buy for

performance is no guarantee of future gains, but the conditions

portfolio diversification purposes.

look right, with demand for the best pieces likely to grow over

This is a market that works on supply and demand. The more

the coming years. Why?

scarce and desirable an item

• The retirement of the wealthy

is, the greater the potential

baby

returns. Anything less than top

seeing millions of people return

grade, and you will find that

to their hobbies and find time

the

for new passions.

value-increases

quoted

above will look a long way off.

boomer

generation

• The growing wealth of the

This is why I continually stress

middle and affluent classes in

that the investment end of the

India and China – two countries

sector is only for the more

who love collectibles – will

sophisticated buyers, who are

impact the markets hugely over

comfortably able to buy single

the coming decades.

items for five figure sums.

• And then there’s the growing

Fun and profit?

realisation around the world

It is important to differentiate

that heritage assets offer terrific

between an item that is a fun

diversification potential. And

collectible and one that is an

more people will be seeking

investment. The vast majority

such pieces, having learnt the

of the collectibles sector is

lessons of the economic crash

“fun”. Yes, hugely enjoyable to

– diversification, diversification,

own and show off, but unlikely

diversification!

to grow terrifically in value –

The start of 2013 has shown

most likely because they’re

diversification

available in large numbers.

important than ever, with gold

Examples include a 1960s

dipping sharply after a decade

Triumph Spitfire (thousands

of gains. And while the world’s

made and less mass appeal

stock markets enjoyed a terrific

than Ferraris or Jaguars), an

start to 2013, the long-term

average state Penny Black

prognosis is uncertain.

(over 68m were produced,

If you feel that rare collectibles

ensuring only the finest grade examples

are

could be worth a place in your

investment-

portfolio, how do you start?

class) or a Picasso engraving (Picasso was prolific – meaning his limited-edition engravings have sold for as little as £300 in the past). Yet there is nothing stopping investment-grade collectibles from also being great fun to own – although the more valuable the

This checklist should help: 5 steps to successfully diversifying with collectibles

item, the less I find people are willing to pass it round at dinner

Quality: Buy the best you can afford. All things being equal,

parties!

the more you have to spend to secure an item, the rarer and

Market catalysts

more desirable it will be. It is these pieces that have historically shown the greatest price appreciation. Ferrari 250 GTOs (just

So if you have the money and the desire to invest in collectibles,

39 were built), Henry VIII signatures (privately owned examples

there’s one question you should be asking: can the top end

are extremely rare), and mission worn space suits are just three

personal finance & wealth management supplement the barrister 2013

potential examples. Value: Look to see what comparable pieces have sold for in the past to ensure that your head stays firmly in control of your

first and foremost enthusiasts, who are happy to assist. Use them. At Paul Fraser Collectibles we have the world’s largest stockholding of collectibles and would be delighted to help.

heart when making an offer to a dealer or placing a bid at auction.

Paul Fraser

Authenticity: Take every step to make sure the item is genuine.

Founder of Paul Fraser Collectibles

Does it have a lengthy documented history, with a list of

www.paulfrasercollectibles.com

previous owners? If buying from a dealer don’t be impressed

info@paulfrasercollectibles.com

by a certificate of authenticity alone – it must be backed by a lifetime moneyback guarantee, which ensures you get your

+44 (0)117 933 9500

money back if it turns out to be a fake in the future. Diversity: Just as every investment portfolio needs diversity, so does your collectibles collection – values can go down as well as up, as tastes change and “unique” pieces are discovered to no longer be quite so singular. Widen your interests and your portfolio will be the better for it. Expertise: The most important point of all. If you don’t have it, speak to someone who does. Or better still, two or three. While the previous four points will help you make an educated decision, there is nothing like having the comforting expertise of a professional in your corner. Dealers and auctioneers are

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personal finance & wealth management supplement the barrister 2013

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UK PROPERTY OUTPERFORMS During any period of ongoing economic uncertainty, one could reasonably expect the capital value of property, like many other assets, to depreciate. However, despite the catalogue of recent domestic and international economic issues that could easily have prompted a crisis within the property market, prices in London are now above their pre-recession levels and many of the dire predictions made by property commentators have so far proven to be wide of the mark. The improved market conditions witnessed this year have been the result of a number of factors which have contributed positively to buyer/seller sentiment, not least the improved affordability and accessibility of mortgage finance, an economy which is showing definite signs of recovery and a number of government initiatives aimed at stimulating the property market. Signs of recovery vary between regions, with the London and the south of England seeing the most improvements whilst the north of England continues to struggle. Average prices across the country climbed 3.1% in the year to June, while in London prices have risen 6.9% with sales of £1m plus houses up by 31% in the year ending June 2013. London prices continue to act almost as a law unto themselves, with capital growth of Prime Central London properties last year comfortably outpacing that of other major assets, delivering better long-term growth than equities and gilts and proving less volatile than oil and gold. It is for this reason that the London property market is increasingly seen as an international financial safe haven and attracts an enormous amount of investor interest, both domestic and overseas, meaning that competition between buyers for the few available properties is fierce and prices are continually being driven upwards, much to the delight of savvy investors that have already invested. Interestingly, the Chinese, Russian and Middle Eastern investors which have long been active in central London are now being joined by investors from countries including South Africa, Turkey, Kazakhstan and Azerbaijan, which are expected to become an increasingly active and influential force in London’s real estate market. The buy-to-let investment market has also experienced a boost over the past year, thanks in main to the increased availability and affordability of specialist buy-to-let mortgages, which can now be secured from 2.5%. Although average rental growth has slowed over recent months after a number of years of impressive growth, rental investments are generally still providing landlords with a good, reliable return that beats the meagre interest paid by banks and building societies on savings.

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Buy-to-let investors have also benefitted from the large number of ‘trapped’ renters – people that, despite government schemes designed to help people on to the property ladder, are struggling to secure a mortgage and/or accumulate an adequate amount of deposit monies and are finding themselves increasingly priced out of the market and forced to rent. This situation caused, as Homelet recently reported, average rents to increase by 3% to £811 per month during June, their highest ever level. The same report also noted that void periods have also dropped significantly as renters are eager to secure a rental and also opt for longer rental periods. Another investment class outperforming many other assets and attracting a wide range of international and domestic investors is farmland. As with the residential market, this sector is suffering from a chronic shortage of available or viable stock, a fact which has been pushing values steadily up. Average farmland values are now at a record £8,520/acre, up from £7,069/acre in 2007. Looking forward, Chesterton Humberts’ Head of Research, Nick Barnes, is anticipating that next year will see a continuation of the growth enjoyed this year. He commented, “As the funding for lending scheme continues into next year and the government seeks to increase its popularity amongst the electorate in the run-up to the 2015 election by not making any sudden moves, national average house prices should continue their modest upwards trend. Property in central London will, for the foreseeable future, be a safe investment, but with such strong competition for well located and good quality stock driving prices, the ability to secure a ‘deal’ will become nigh on impossible.” Chesterton Humberts is an award winning estate agent and property consultancy offering a wide range of property-related services, including residential sales, lettings and management as well as professional services such as formal valuations, expert witness and leasehold enfranchisement.

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Ensure your finances are in order By Mike Warburton, Director, at leading business and financial advisors Grant Thornton UK LLP. The first rule of public speaking is that you should never

about your property, investments, insurance policies, bank

embarrass or insult your audience.

accounts, debts and anything else they will need to apply for

The same applies to

articles in learned journals. On the other hand, it is great fun.

probate.

When I give a talk to a business club, I usually throw in the occasional “ask the audience” question. Something like “hands

Do not forget any gifts that you have made in the last seven

up everybody who has reviewed their will in the last five years”.

years in excess of the £3,000 a year annual allowance. If you

If you are lucky, about one third will respond. I then try “hands

intend to rely on inheritance tax (IHT) relief for regular gifts out

up if you have ever made a will”, which usually leaves about

of income, you need to record not just the gifts but also leave

10% of the audience looking sheepishly at the floor. I have

details of your income and expenditure over the previous seven

often tried the same routine with an audience of lawyers, which

years. I did this for my own mother for the last five years of

hilariously throws up at least one who admits to having no will

her life when she kindly agreed to assist with the school fees for

and a number of others too embarrassed to admit it. We all

her assorted grandchildren and, by keeping detailed records of

know they should have an up to date will, but somehow it gets

the amount of her excess income, I had no difficulty persuading

overlooked in the busy lives we all lead.

the capital taxes office that over £100,000 of her gifts escaped IHT. Having made a Dying Tidily Log, make sure you tell your

I deal with barristers on a regular basis, either as tax counsel

nearest and dearest, and your executors, where you have filed

or in litigation work, where I act as an expert witness. Without

it, and make sure you know where the key is if you have it

wishing to ingratiate myself with this readership, I recognise

locked away in a safe, and how to find the safe of course.

that barristers are, almost by definition, very bright people who can apply themselves to enormous detail in the matters at hand.

HM Revenue & Customs (HMRC) is becoming particularly tough

So why is it that that so many barristers seem to display wholly

over deceased estates, where it seems to think that a number of

different tendencies in running their own financial affairs?

valuable assets go ‘missing’ sometime between the death and the executor turning up to find them. A particular giveaway

Apart from the obvious need for a will, it seems to me that

is the clean patch on the sitting room wall where the family

it is the duty of all of us to make life easy for those we leave

heirloom used to hang.

behind, particularly our executors. The problem with being an executor is that the person you would most like to consult when

At a rather more basic level, we still come across barristers

you are tidying up an estate has inconveniently just died.

who overlook some of the most basic issues of financial recording (there I go insulting the audience again). Anyone

When you ask someone to be your executor, it is often regarded

starting a business should operate through a business bank

as rather an honour, a bit like asking someone to be your best

account. That way you can record all your fee income and

man at your wedding. The duties, however, are considerably

business expenditure as a check on the records you have in

more onerous. I favour the creation and regular update of a

your bookkeeping system.

Dying Tidily Log. This should be a few sheets of paper on which

keep proper books and records is asking for trouble with the tax

you write all the information that your executors will need to

office, who are taking a particular interest in professionals at the

know after you are dead. Apart from the location of the will

moment, including barristers. If you want evidence of that, you

(recently updated of course), you should record information

only have to look at recent cases where HMRC has successfully

personal finance & wealth management supplement the barrister 2013

It sounds obvious, but failure to

prosecuted a couple of barristers for failing to account for

most of us are anyway. One thing we can be sure of is that the

VAT correctly. It is a particularly effective way of ruining your

state will not be in a position to provide a decent pension for

career. It is not just because HMRC believes it can recover

us in our old age and we need to sort out our own retirement

over £3 million from the legal sector, but because it rightly

planning. There is a simple rule on this, if you do not have a

believes that professionals should set a high standard. HMRC

pension plan, start today.

is planning a five-fold increase in prosecutions of professionals, which it believes would strongly encourage others to pay their

Reading through this again , I have decided that I rather like

‘fair share’. It also plays well politically to show that nobody is

the first paragraph, which beats “some of my best friends are

above the law. After all, MPs received their own grilling a few

lawyers”, even though that happens to be true.

years ago over their expense claims. If MPs’ expenses were deemed to be too generous, perhaps lawyers have been getting

Author

away with it as well. Having said that, however, it is important

Mike Warburton, Director,Tax at leading business and financial

that you claim all the expenses to which you are legally entitled.

advisors Grant Thornton UK LLP. Hartwell House | 55-61 Victoria Street | Bristol | BS1 6FT

In general terms allowable expenses fall within HMRC’s ‘wholly

T (direct) +44 (0)117 305 7819 | M +44 (0)7970 673 612

and exclusively’ principles. Deductible expenses include (certain)

E mike.warburton@uk.gt.com | W www.grant-thornton.co.uk

clothing and cleaning, chambers costs, business only telephone, legal literature, clerking, general admin such as stationery and postage, motor expenses plus travel and subsistence (excluding home to chambers), use of home as office, professional subscriptions, indemnity insurance, accountancy, course and seminars, business loan interest and capital allowances on motor vehicles and law libraries. This is not suggested to be an exhaustive list but may represent a helpful checklist. Keep comprehensive records and documents to support claims as HMRC is taking a keen interest.

Finally, for those of you who are married, one of the best investments you can make is in your spouse. I am not just here talking about the benefits of marital harmony but, from a financial point of view. Although most barristers will have administrative tasks looked after in Chambers by the clerks, there is usually scope to employ your spouse to look after the various other business issues that crop up, which may include secretarial duties when you are working from home. This can lead to an opportunity to provide not just a salary for your spouse, but also a pension. The tax rules on pensions can be very generous. Even if there are minimal earnings, you can use the £3,600 allowance.

This brings me round to my final words of wisdom. Despite all the stresses and strains we live under, we are living longer, well personal finance & wealth management supplement the barrister 2013

Implied beliefs in personal investing By Stuart Fowler, Director, Fowler Drew Limited As financial advisers working with clients who do not have a

case we ought not to compare the growth in our ‘net equity’

financial background (including many lawyers), we can identify

with the market return, without borrowing, from equities.

a number of common beliefs about personal investing that they

Borrowing only makes us richer if the assets acquired rise in

appear, judging by their previous actions, to have treated as

value by more than the cost of borrowing. Earlier generations

reliable or certain. Chief among the implied beliefs that do not

of home owners were enriched by negative real interest rates in

hold up under questioning are:

a time of high inflation, not by a property boom.

1. Property is a better investment than financial assets

The loser’s game

2. In a changing world, my risk tolerance should also change

What reasonable person would not vary their willingness to

3. Holding fixed-income investments reduces my risk

bear risk with the changing state of the economic environment?

4. I can ‘do it myself’ – or if I cannot I know how to select who

Seeing the state of the UK or world economy deteriorate and

should.

risk increase, why not reduce exposure to risk, and vice versa as conditions improve? Reasonable it may be but it does not

Home truths about ‘bricks and mortar’

usually have the desired effects.

Lacking financial training, we are likely to have a ‘familiarity’ bias to property as an investment and to believe that, in our

It was the veteran American investment adviser, Charlie Ellis,

own experience, property has beaten financial assets like

who in 1975 first adopted some contemporary observations

equities. This assumes we know how to account for the true

from a book about tennis to make his point that individuals

return on our own property investment and that we know what

play the stock market like amateurs play tennis. They play as

the comparable data is for equity investing. Rarely are both

if they can win every point, in other words as if they are more

true.

skilled than is really the case. Instead of beating their opponent, they beat themselves. Top professional tennis players, however,

From a theoretical point of view, we might all agree that it is

recognise the limit to their skill and wait patiently for, or to

unlikely that the long-term real returns (after inflation) from

create, the small advantage that offers a point, all the time

business and housing will diverge significantly, because both

minimising their own unforced errors.

are connected via employment incomes and affordability. This is supported by data for indices of equity markets and house

Changing investment positions as a reaction to our view of the

prices. When income returns are ignored (as property rent,

changing world we live in (and invest in) is a form of ‘market

broadly equivalent to business dividends, is being consumed

timing’ and is the equivalent of treating the opposition (other

or spent when we live in our own property) and adjustment is

investors) as amateur and imagining we are the pro. The

made for general inflation, the long-term trend in UK real house

market already reflects the actions of others based on their

prices, as measured by the Nationwide index, and the capital

beliefs about what is happening in the ‘real world’ so successful

return on the FTSE All Share Index have both been about 2%

investment requires a reaction to the market rather than to our

pa for the last half-century.

own changing views of the world. What results from that insight, equivalent to the long, testing rallies of the tennis winner, is

Even this flatters the performance of property, as the dividend

a ‘contrarian’ approach to both markets and sentiment. I see

element of the equity return is after retaining sufficient capital

this as maintaining a constant risk tolerance while other people

for investment to sustain the life of each firm, otherwise each

change theirs: I change my levels of risk but not my attitude to

dividend-paying company would be a wasting asset (which,

risk.

after the event, we can see only some were). Rarely do we calculate our own property returns adjusted for the new capital

Taking the long view and acting as a contrarian relative to other

investment we have made, not only to achieve improvements

players is a way to win the equity game. But this is because

but simply to maintain the standard of the property at the

the belief implied by this way of investing is that real returns

‘market’ level implicit in the house-price indices.

provided by equity indices are a measure, or reflection, of the capitalist system at work. It is a system because collectively

Where we have made out in the past is by borrowing, in which

personal finance & wealth management supplement the barrister 2013

business is adaptive: it changes in response to economic or

political stresses in ways designed to ensure its survival. Whilst

‘accumulation’, once earlier priorities like family raising and

not all individual businesses survive change, an index is by

property enjoyment have been satisfied, a well-informed

design Darwinian, dropping losers and picking up winners.

and constant DIY approach is likely to be superior to most

Lacking confidence but needing to hang your investment

professional portfolio-management services. ‘Well-informed’

decisions on some set of beliefs, to back the equity return

means getting clear about what risks to bear or embrace and

system is like Pascal’s wager because if it is proved wrong all

what risks to avoid; ensuring enough risk is taken; constantly

other investments will be doomed too.

acting consistent with a sensible view of the way the financial world works. This is what good financial planning at an early

The bond fallacy

stage of your earnings career should equip you with.

Except for index linked bonds, with guaranteed inflation protection, fixed-income bonds are ‘nominal’ contracts whose

It is as retirement approaches, and risks take on different

future real value depends on what happens to inflation. There is

forms, that you are again likely to need new and more granular

no ‘natural’ or ‘typical’ rate of change in prices in the economy

planning. At that stage, finding a good money manager is

comparable with the systematic trend of real returns from

both more important and much harder. This is because few

equities.

managers of private wealth know (or care) how to adapt their portfolio solutions to the complexities of ‘drawdown’ or living

Up to the 1950s, deflationary episodes were as common as

off capital. Planning will reveal each of: idiosyncratic rates of

inflationary ones. From the 1950s to 1980s, an upward trend

draw, derived from after-tax spending targets and with entirely

took hold, with increasing volatility. This saw the purchasing

personal profiles at different stages of retirement; competing

power of fixed income streams (bonds, annuities, nominally-

welfare, such as between clients’ own spending and helping

fixed pensions) eroded dramatically to the point, for many

children and grandchildren; wide ranges of time horizons

investors, of real hardship.

implied by drawing on capital from as little as 10 years to as many as 50 years out. These client-specific planning outcomes

Nearly a quarter of a century later, memories are selective.

are technically challenging for portfolio managers and imply

People remember the gains in capital values provided by the

high cost and lower profit compared with their standardised

Great Moderation in inflation and overlook the confiscation

products and services.

and transfers of wealth that inflation wrought previously. Most private investors hold bonds in their portfolios. Indeed they are

Lacking expertise to select advisers and money managers,

the investment industry’s main means of differentiating portfolio

individuals tend to rely on ‘proxies’ such as personal chemistry,

risk in a portfolio, because their short-term volatility is lower

past performance, reputation and brand. The implied belief

than equities and they may also move in opposite directions.

is that professionals are skilled: they know how to play to win. Experience suggests otherwise: they are also caught out

There are in fact two core building blocks that are sufficient for

by a lack of respect for the randomness and unpredictability

any private-client portfolio: equities and index linked gilts. The

of markets. Disappointment is far less likely when selection

latter offer certain real returns at certain future dates so are

is based not on proxies but the evidence they can see of the

the natural ‘risk free’ asset for individuals. Adding index linked

adviser’s humility, of services clearly customised to the client’s

gilts to equities is the most reliable, quantifiable way to reduce

own needs and of ways of charging that more obviously align

the risk inherent in uncertain future real values for equities and

their interests with their clients.

to keep portfolio wealth outcomes within tolerable levels. Stuart Fowler The agency selection problem

Director

Who to turn to, when the experts appear just as likely to double

Fowler Drew Limited

fault or smash the ball out of an empty court – and charge you

22 Quayside, William Morris Way, London SW6 2UZ

heavily for the privilege of watching them play the Loser’s Game

+44 (0) 207 736 2434

for you?

www.fowlerdrew.co.uk

Taking a ‘lifetime’ view of the need for advice and investment

Authorised & Regulated by the Financial Conduct Authority No

management, there are a few life stages at which planning,

402423

helped by experts, is useful but then only if it is accompanied by education that will better inform your future actions. During

personal finance & wealth management supplement the barrister 2013

Pension lifetime allowance cut – ‘it could be you…’ By Dave Downie, Technical Manager, Standard Life Back in 2006, the introduction of the lifetime allowance ‘cap’

Figures have been rounded to the nearer £1,000

on pension savings brought consternation to many in the legal

An allowance for costs of 1% has been made.

profession. From next April the cap is set to fall and will be lower than the original £1.5M figure set in 2006. The good

So someone 10 years from retirement with a current pension

news is that there is still a window of opportunity to plan for its

pot of £700,000 could exceed their allowance if their pot grows

introduction.

at 7% a year – even if they stop paying into it now.

It could be you

Protection 2014 – locking into a higher lifetime allowance

The pension lifetime allowance (LTA) will be reduced for the second time in two years to £1.25M. This is the maximum

So what can be done about it?

amount of pension savings that can be built up without tax penalties. The combined tax charges on savings above this will

There are two new protection options for 2014, allowing those

be 55% whether taken as a lump sum or as income for a higher

affected to lock-into a higher LTA – ‘fixed protection 2014’ and

rate taxpayer. It’s worth noting, however, that State pensions

‘individual protection’.

and non-registered pension schemes (such as certain elements of the Judicial Pension Scheme) don’t count towards this limit.

Fixed protection 2014 mirrors the earlier fixed protection 2012 when the LTA was cut from £1.8M to £1.5M. The latest

There is the realistic possibility that the LTA will be frozen for

version allows people to keep a £1.5M LTA beyond 2014. This

the foreseeable future – and might even be cut again.

is available to anyone who doesn’t have any of the earlier forms of protection (enhanced, primary or fixed protection 2012).

HMRC estimate that 30,000 people will be immediately affected by next year’s LTA cut, with 360,000 expected to break this

But there’s a trade-off: pension contributions have to stop after

limit over the longer term. This takes the impact of the LTA way

5 April 2014. And HMRC must have received the application

beyond the 1% envisaged when it was introduced.

for fixed protection by then.

A £1.25M limit may not set alarm bells off with you just yet.

Individual protection is only available if pension savings exceed

But, with a frozen allowance a distinct possibility for those

£1.25M on 5 April 2014. This will give a personal LTA equal to

within sight of retirement, you don’t have to be close to £1.25M

the benefit value on 5 April 2014 (up to a maximum of £1.5M).

now for it to become a problem. Investment growth can quickly accelerate pot size.

So someone with pension savings worth £1.36M on 5 April 2014 can lock-into a personal lifetime allowance of £1.36M.

This table shows the current pension pot that could grow to

But someone with savings worth £1.55M would only secure a

£1.25M over various terms to retirement based on different

£1.5M allowance.

growth rates (and assume no further contributions are made): Crucially, this protection comes without the trade-off needed for Years to go/ growth

fixed protection. Individual protection allows you to continue

3 £1,170,000 £1,050,000 £994,000

funding your pension after April 2014 if you want to (or, perhaps,

5 £1,130.000 £936,000 £854,000

continue to enjoy pension funding from an employer). So, for

10 £1,020,000 £702,000 £583,000

those already above £1.5M by April, individual protection gives

personal finance & wealth management supplement the barrister 2013

a better deal than fixed – a £1.5M LTA with no requirement to

above 25% and protected low pension ages. It’s a legislative

give up on future pension saving.

and planning minefield that requires careful consideration to navigate through.

•

There’s no downside to registering for individual

protection, so anyone eligible should do it.

You’ll get an

Getting this wrong could potentially expose up to £250,000 of your pension savings to a needless 55% tax charge. That’s

increased LTA with no trade-off.

137,500 reasons to seek professional advice and avoid sleep-

•

walking into a tax charge. It isn’t an easy decision and the clock

And it can be registered alongside fixed protection

2014 or 2012. This gives a safety net to fall back on if fixed

is ticking…

protection is lost. •

HMRC is still consulting over whether individual

protection should also be available as a safety net alongside

Decision time

enhanced protection. It definitely won’t be available to those

The allowance cut raises some difficult questions. And those

who elected for primary protection back in 2006.

affected have some big decisions to make before April:

It’s expected that applications for individual protection will be

Should I elect for protection?

allowed until 5 April 2017. This is to allow time to ascertain the

The biggest, strictly time-bound, decision is whether to register

benefit values at 5 April 2014 needed to establish the personal

for protection or not. And, if so, which one is right for me?

LTA. •

Fixed protection means giving up on further pension

funding. Here’s a high level summary of the two new protection options: • Fixed protection 2014

LTA of £1.5M

Individual protection gives a higher allowance and

Individual protection

the ability to carry on funding, but leaves the possibility of tax

Personal LTA based on

charges on future growth.

benefit value at 5 April 2014 (or £1.5M if lower)

An alternative for those considering retirement soon is to take

No ‘benefit accrual’ after 5

Further contributions/ DB

benefits this tax year, even if this wasn’t your original intention.

April 2014

accrual allowed

But you might also be best advised to register for protection

Must apply by 5 April 2014

Applications open to 5 April

too (for example, to protect against any LTA at age 75 under

2017

drawdown).

Can’t have with primary,

Can’t have with primary

enhanced or fixed protection

protection

2012

Consultation over holding alongside enhanced protection

Can have alongside

Can have with fixed

individual protection

protection 2012 or 2014

Top-up pensions this tax year? The current tax year is the last opportunity for anyone opting for fixed protection to make a final top-up payment to their pension before the shutters come down in April. If you are close to retirement you might want to top-up your pot to take it over the £1.25M threshold that triggers eligibility for

These new options are very welcome. But they take us a long

individual protection.

way from the 2006 vision of a ‘simplified’ pension framework. As well as the standard regime, we’ll now have 5 different

Employer compensation?

protection regimes - enhanced, primary, fixed 2012, fixed 2014

Protection might mean giving up on future pension saving –

and individual protection! Not to mention protected lump sums

either to safeguard fixed protection or minimise tax charges

personal finance & wealth management supplement the barrister 2013

under individual protection. But, for those who are employed

pension for another family member who will receive tax relief

rather than self-employed, what if it also means giving up on

on your contributions.

‘free money’ in the form of employer contributions? Having a range of different investments, each with different Will your employer offer alternative remuneration in place of

benefits and tax treatment, can allow greater scope for tax

the pension contribution? If so, is it sufficient to outweigh the

planning when it comes time to enjoy your retirement. It can

potential tax charge from staying in their pension scheme?

offer flexibility around your retirement income strategy and also when you come to consider how to pass on your wealth to

This complicates the equation further. But it’s important to pin

future generations.

it down. Time to act Review investments?

There’s a lot to think about. And April 2014 is fast approaching.

The lower LTA can change the investment risk v reward

So it’s best not to leave it too late and risk unwanted tax charges.

equation. You will only benefit from 45% of any investment growth above the LTA, but yet will still suffer 100% of any loss.

For more information speak to your financial adviser or Standard Life on 0800 970 4165

This imbalance could be the trigger to review your investments within your pension, switching out of riskier funds aimed at

The value of an investment can fall as well as rise, and may be

providing capital growth for a portfolio that offers greater

worth less than invested. Laws and tax rules may change in the

protection against stock market volatility.

future and the information here is based on our understanding in August 2013. Personal circumstances also have an impact on

Consolidate legacy pensions?

tax treatment.

Regularly reviewing progress of pension pots towards the reduced allowance will become increasingly important in the

Calls may be monitored and/or recorded to protect both you

post-2014 world. This is easier if all the pensions are held in

and us and help with our training. Call charges will vary.

one place. This raises the question of whether to transfer your existing pensions all into a single scheme. And this can bring other benefits too – economies of scale, wider investment choice and benefit flexibility. But make sure you aren’t giving up valuable guarantees. There is also no guarantee that you would be better off combining existing pensions. Where to save after April? If you are forced to give up funding your pension, you still have to save your surplus income somewhere. There is a wide choice of other investments, and tax wrappers, available. ISAs and offshore bonds both enjoy the same freedom from tax on their investment growth within the fund as your pension fund benefits from.

While unit trusts and OEICs offer an

opportunity to make use of your CGT exemption each year to mitigate tax. And not forgetting that you could be funding a

personal finance & wealth management supplement the barrister 2013

savings whatsoever, we should bear in mind that it is not a

appearing on posters and television commercials, declaring

silver bullet. An 8% contribution will only go part of the way

‘I’m in.’ But the reality is the new pension rules will still leave

to providing a comfortable retirement, even if you start saving

large swathes of the population un-pensioned, including the

at age 22. Someone earning £50,000 could expect a pension of

self-employed.

around £4,000 per annum if they saved all their working life with an 8% contribution. That drop in income suggests a rather

The government has recognised for some time that we have a

hefty fall in living standards.

problem: millions of people are not saving enough for retirement. This is going to cause huge problems as waves of babyboomers

Understandably a fairly natural reaction to statistics like this

hit retirement with long life expectancies that could hardly be

is to hold your head between your knees in despair. This

imagined when they were born. The government has already

actually is part of the problem which automatic enrolment will

taken some steps to deal with this by increasing the age at

hopefully eventually address: our savings culture is far behind

which you get your state pension and making it less generous

the curve in adjusting to the increase in life expectancy that has

for many.

been observed, and indeed which keeps rising. Yet another frightening statistic: one third of all children born in 2012 can

However, the government also know that they need to get people

be expected to live to 100, according to the Office for National

saving if they are to avoid huge numbers of people retiring in

Statistics.

poverty. To this end they have introduced a programme called ‘Automatic Enrolment’. The premise of this initiative is to

This rise in life expectancy has a direct impact on how much we

harness the power of people’s inertia towards their pension.

need to save. A 65 year old man with average life expectancy

Employers will need to automatically enrol their staff into a

can now expect to spend 1 year in retirement for each 2 years

pension scheme, and pay into it. People can opt out if they wish,

he has spent working. In very crude terms to support himself

but the idea is they won’t be bothered to do this.

he therefore needs to save £1 for retirement for each £3 that he earns, in other words a 33% pension contribution. The

This process started in October 2012 with the very biggest

crudeness of this example illustrates the point, but before you

employers and is gradually working its way down to the very

fall off your chair it does ignore some subtleties which actually

smallest. While it is still early days, the programme appears

make things look a bit better for us.

to be meeting with some success. Only around 10% of people have opted out of their new pension, so it looks like harnessing

In particular we can expect a state pension, which we pay for

inertia works. For those who have an employer who enrols

notionally through National Insurance Contributions. However

them and pays into a pension for them, this is a very positive

this a bit of an unreliable beast to say the least, because politicians

step forward. The deal is that the employer has to pay 3% of

have a habit of moving the goalposts, and changing the game.

salary into a pension, whereas the employee pays 4% in, with

State Pension Age is in the process of rising to 67, and is likely

a further 1% coming from the government in the form of tax

to hit 70 in the not too distant future. We can however expect

relief (higher rate taxpayers actually get a further 1% in tax

something from the state to help us in retirement (probably).

relief too).

The fact that we invest the money we save also means we don’t have to save as much as £1 today to get £1 back tomorrow.

While this is a vast improvement on the situation we have now,

How much exactly we need to put away depends how early we

where half the working population are not making any pension

start saving: if I want £1 back in 2050 I can put away lot less

personal finance & wealth management supplement the barrister 2013

than if I want it back next year. The combination of these two

programme is a positive and necessary step. But it will leave

tailwinds means that as a rule of thumb we each need to save

many behind, and for those it encompasses it will be only a

around 15% of earnings throughout our working life to be able

partial solution. Some of this can be addressed by policymakers

to retire comfortably. The 8% contribution required by auto-

increasing the required contribution up from 8%. Many view

enrolment goes some way towards this target, but there is still

this as an inevitable next step. If we look across to Australia

considerable slack to be taken up.

who introduced a similar system 20 years ago, employer contributions started off at 3% of salary like here, but are set to

What’s more, for some people auto-enrolment won’t even

rise to 12% by 2019. Clearly it will take us quite some time to get

improve their lot up to this modest level. The self-employed

there, and in the meantime a generation could fall through the

are the most obvious group. With no employer to automatically

cracks and hit retirement with very little to their name. Those

enrol them, they fall completely under the radar. It will still

who accumulate a decent savings pot will almost certainly be

be possible for a self-employed individual to go through their

those who had to do it themselves. Harnessing inertia can work,

entire working life without saving a bean for retirement, or

but it can only take us so far.

have anyone make savings on their behalf. To make matters a bit more complicated here, the definition

Laith Khalaf

of self-employment used for automatic enrolment is slightly

Head of Corporate Research

different to the taxman’s definition. So in some cases even if

Hargreaves Lansdown

HMRC would judge you to be self-employed, you may count as

0117 980 9866

employed under pensions legislation. Much of this comes down

0797 757 0820

to whether the individual has a contract of services or a contract for services. Anyone who has a contractual relationship of this nature should check their status with the organisation they have that contract with. If you find that you don’t qualify for an employer pension contribution because you fall into the self-employed camp, you can of course set up an individual pension of your own. While you won’t benefit from an employer contribution in this scenario, you will still qualify for tax relief from the government to boost your savings. There are a number of individual pensions out there. These range from a Stakeholder Pension, which offers you a fairly limited number of funds, all the way through to a SIPP (Self Invested Personal Pension), which allows you freedom to invest where you want, in funds, in shares, in trackers and ETFs, or in bonds. SIPPs have become very popular in recent years as people who are saving tend to want to make the most of their money. Crucially, the generous tax breaks are the same whichever pension you choose to save into. The alternative to saving for retirement is not particularly appealing. If you hit State Pension Age with nothing to your name, you can expect around £7,500 a year from the state. That amounts to about £145 a week- not a great deal by any stretch of the imagination. That is why the automatic enrolment

personal finance & wealth management supplement the barrister 2013

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