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Boyack Meeks Independent Financial Planning

Investments Inheritance Tax Independent Saving Account

Avoiding The Pitfalls That Could Seriously Damage Your Wealth.


Investments Taking the guesswork out of Investments When considering investments three of the most important factors to take into account are: Your Risk Profile Your Time Frame (How long are you prepared to tie your money up for?) Your Tax Position Of these, risk is something that many investors find difficult to define, as different people have different attitudes to risk. In addition to this there are different types of risk, some of which are shown below:

Market risk: The return on your investment could be reduced by a fall in the market

Inflation risk: The return on your investment could be reduced by an increase in the rate of inflation.

Interest rate risk: If you invest for a fixed period in a variable rate account your return could be reduced by a reduction in interest rates.

Liquidity risk. If the value of an asset falls and it becomes difficult to sell. e.g. property.

Credit risk: This is particularly important to investors who have large sums deposited with financial institutions that go into default.

Currency risk: When an overseas investment is made by a UK based investor and sterling appreciates against the currency in which he is invested. It is therefore most important that you are clear about the degree of risk you are willing to accept before undertaking any kind of investment. To help you assess how much risk you are prepared to take contact us today for our Risk profile questionnaire. Once completed we will input your answers on a secure Investment Online Risk Profiler, which will compute a suggested risk score and asset allocation. The risk score gives an indication of the level of risk you may be prepared to take on a range from 1 (low risk) to 10 (high risk). The risk score is only a guide and you can decide, with our guidance, to invest more conservatively or more aggressively.


Inheritance Tax Important facts you should know to help safeguard your family. Inheritance Tax (IHT) is the tax charged on the value of property passing on a person's death and on certain lifetime gifts subject to certain exemptions and reliefs. If the value of your estate, including your home and certain gifts made in the previous seven years, exceed the current IHT threshold of £325.000 a tax charge of 40% could be levied on the balance. The main exemptions are shown below: Spouse or civil partner exemption. Transfers to a spouse or civil partner is exempt even if the amount is over the threshold. Charity exemption. Any gifts you make to a 'qualifying' charity during your lifetime or in your will is exempt from Inheritance Tax. Annual exemption. You can give up to £3,000 away each year, you can also use any unused allowance from the previous year. Small gifts You can make small gifts up to the value of £250 to as many people as you like in any one tax year. You can’t use your small gifts allowance together with any other exemption when giving to the same person. Wedding and civil partnership gifts. Gifts to someone getting married or registering a civil partnership are exempt up to the following limits: Parents can each give cash or gifts worth £5,000. Grandparents and great grandparents can each give cash or gifts worth £2500. Anyone else can give cash or gifts worth £1,000 You have to make the gift - or promise to make it - on or shortly before the date of the wedding or civil partnership ceremony. If the ceremony is called off and you still make the gift - or if you make the gift after the ceremony without having promised it first - this exemption won't apply. Regular gifts or payments that are part of your normal expenditure Any regular gifts you make out of your after-tax income, not including your capital, are exempt from Inheritance Tax. These gifts will only qualify if you have enough income left after making them to maintain your normal standard of living. Potentially exempt transfers. If you survive for seven years after making a gift to someone, the gift is generally exempt from Inheritance Tax, no matter what the value. However, should you die within seven years of making the gift the IHT payable will be calculated according to the following table. (This is known as Taper relief)

Years Between Transfer and Death

% Taper Relief

% IHT Payable

0 to 3 3 to 4 4 to 5 5 to 6 6 to 7 7 plus

0 20 40 60 80 100

100 80 60 40 20 0


Individual Savings Accounts Investing for your future. Individual Savings Accounts (ISAs) are available to all UK residents aged 18 years or over for investment into a stocks and shares ISA or aged 16 years or over for investment into a Cash ISA. They benefit all taxpayers, as any income or capital gains received from investments held within an ISA do not have to be declared to the tax man. ISAs are available to individuals who are resident and ordinarily resident in the UK and as the name implies, can only be made on an individual (not joint) basis. With effect from 6th April 2010 the overall annual ISA allowance has increased to £10,200. This means that you can invest up to £5100 in a cash ISA and up to £5100 in a stocks and shares ISA in the current tax year. Where you have not invested in a cash ISA for this year you could invest the full £10200 in a stocks and shares ISA.. As an ISA remains one of the most tax-efficient methods of investing, it is important to ensure that you maximise the allowance available to you in the current tax year, because if it is not used this valuable opportunity is lost. Stocks and shares ISAs can invest in cash or longer term investments like unit trusts, investment trusts, Open Ended Investment Companies, some fixed interest securities, or any share quoted on a stock exchange recognised by the Inland Revenue.

Cash ISA's are widely available with different interest rates. It is a good idea to shop around for the best Cash ISA rates. It is important however to understand the conditions attached to those rates, for instance access may be restricted in order to achieve that particular rate. ISA savers can transfer money saved in a cash ISA to another cash ISA or if they are aged 18 or over into a stocks and shares ISA. However, it is not possible to transfer a stocks and shares ISA into a cash ISA. Withdrawals from an ISA can be made at any time without any loss of the tax benefits. However, if any part of the amount invested in a year is withdrawn, it is important to note that once withdrawn it cannot be used for a further investment in an ISA in the same year. As previously stated an ISA remains one of the most tax-efficient methods of investing. However, as ISAs are held on an individual basis and cannot be written in trust you should be aware that when you die they will form part of your estate and could become liable to Inheritance Tax (IHT).


“We offer an ongoing service to many satisfied clients�

"I would like to thank you for all the helpful advice you have given in these years. As a very elderly widow I find it of immense help and comfort to have a financial adviser I can trust and whose utter integrity is without question." Mrs J (Shrewsbury)

"I felt I should write to you to express my thanks and of course my wife's for the wonderful way you have handled our financial affairs. We realise that we are not big customers, but you treat us as if we were. We trust your judgement and it has been excellent." Mr L ( Newport)

"We would like to thank you for all the advice and help that you have given us since our retirement. We cannot speak too highly of your assistance in making provision for our needs both for a monthly income and assuring that our lump sum did not deteriorate, but in fact increased." Mr & Mrs H (Telford)

"I'd like to take this opportunity to thank you for all the good advice you've given over the years. Especially since my husband died, it's been a great comfort to know that I can call on you if I have any financial worries." Mrs R (Oswestry)

The testimonials above are just a selection of the letters of thanks we have received from our clients. If you wish to enquire about our services please do not hesitate to contact us by phone, letter or email. We offer an initial free consultation where we can discuss the services and advice you are looking for and if requested arrange a suitable time to call you back by telephone or arrange an appointment. Peter Meeks Principal


Boyack Meeks 62 Sutton Road Shrewsbury Shropshire SY2 6DS 01743 247751 www.boyackmeeks.co.uk


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