Mortgage Help Centre is devoted to arrangement and providing focused investment solutions for our valued clients.
These may be organizations, charities and private persons. Advise is across a range of genuine of possessions. These include Real Estate, equity, fixed income, money market, varied and substitute funds.
Our customers’ advantage not only from our access to, and experience of, local markets but also benefit from individual tailor made solutions that fit a person’s budget. So these can be monthly or lump sums.
Savings objectives can be for:
Savings for a rainy day
Savings for children
Savings for retirement
Savings for care costs
Savings to buy a house
Saving for travelling
Saving for certain upcoming events
These are just few of the domains of life that we have dealt with. You may have a diverse purpose and we are sure we can help you attain it.
Investments & Saving Options
ISAs
What is an ISA
There are many types of ISAs in the media these days. Here we plan to explain some of the most general terms that you may come across.
Individual Savings Accounts (ISAs) were introduced in April 1999 to swap the old style PEPs and Tessa’s. However many people get puzzled, thinking of an ISA as a complex financial product, and become cautious. This is wrong; it's simply a tax free covering into which you can place either cash or shares. So the benefit from a non ISA account is that the return in the ISA account will be more as your ISA account will not be taxed.
Cash ISAs
Cash ISAs are one of the most tax-efficient ways to save your money because you pay no income tax on the interest you make. Depending on your requirements, you can choose from a wide variety of Cash ISAs, including fixed or instant access, or Cash ISAs that aim to pay a return linked to the performance of the FTSE 100 Index, whilst protecting your capital.
Income ISAs
Income ISAs aim to pay a regular income payment on your investment with no income tax legal responsibility. There is a variety of Income ISAs available, meaning that you can select to receive any income either monthly, quarterly, or annually. You can also select one that suits your investment objectives and approach to risk.
Growth ISAs
Growth ISAs can include investments with the potential for tax-efficient returns and the chance for growth. Growth ISAs are planned as medium to long term investments, and generally perform better over the long term than some other asset types, including cash. Some of the different growth ISAs available include prepared growth ISAs and Fund ISAs such as those that invest in emerging markets.
Commodity Fund ISAs
Commodity fund ISAs invest directly in commodities, such as precious metals or natural resources, or in a fund which invests in commodity companies, such as agriculture, energy, or mining companies. By investing in a product fund ISA, you can advantage from not paying any capital gains or income tax on any potential returns. However, you have to bear in mind the risk for these investments can be quite high and you may not get back the capital that you invested.
Ethical Fund ISAs
Ethical fund ISAs are those which invest in companies that are deemed to be socially accountable, in terms of human rights, environmental impact and meeting religious beliefs. By using your ISA grant to invest in ethical funds, you can advantage from any growth of companies that have a socially accountable ethos.
This can mean companies which take positive action towards being ethical, such as those involved in developing green energy, or ethically neutral companies which Endeavour not to violate human rights or leave behind a carbon footprint. Ethical fund ISAs allow you to shelter any potential returns from tax, expand your investment portfolio, and know that you are helping to make the world a better place. Compare some of the ethical funds available for ISA investment in the table below:
Non Isa Investment
This will have a bigger range of Investments and can include all of the above plus other boutique investments that are not available within an ISA. However, any income, whether income or Capital gains will be taxable at your marginal rate of tax.
Investment Trusts
A lot of people set up trusts in order to administer their possessions while they're living, and to transfer those possessions at the time of their death. Trusts permit you to transfer ownership of property or money to a person who is selected to manage and deal out the assets according to your directions, for the assistance of another.A few trusts could provide important tax reward, while others are for the benefit of persons unable to handle their dealings. Other trusts provide income for a spouse or a child or a beneficiary who is not built-in among your heirs.
The person who establishes the trust is called the “grantor.” The person who manages the trust is known as the “trustee,” and the people who ultimately receive money or other assets from a trust are called “beneficiaries.”
Trusts also are necessary if you have minor children. You can identify in your will that any money left to children who are beneath a certain age, be positioned in a trust for their benefit until they reach the age declared. You appoint a trustee, who will see that the money is properly invested and available for the child when needed. When the child reaches the age stated in the document, the trust is dissolved and the child receives the outstanding assets. In most cases, income tax on the money earned by the trust is taken out of the trust until the child reaches the age stated in the deed. At that time, the child typically has to pay income tax.
There are many varieties of trusts, but all fall under two basic types: revocable and irrevocable. Revocable means changeable, irrevocable means it's beyond your control once set up—it's not changeable. Within each category are various types of trusts.
Unit Trusts & OEICS
A form of communal investment, a unit trust is in fact a lawful trust that allows investors to pool their money together. Trustees, usually banks or insurance companies, then invest the money with a fund manager who makes the day-to-day investment decisions. The funds can invest in a range of companies and regions, in line with the objectives set out in the trust agreement.
It has to be said that unit trusts have a quite complicated structure. They’re efficiently a large pot of money split up into different units, which investors then buy from fund managers. Because they’re unrestricted there’s no limit on the amount of money the fund can accept, so the number of units will always vary in response to investor demand.
Then there’s what’s called the ‘bid-offer spread’. When you buy units in a unit trust, you’ll pay the present price, whereas if you choose to sell your units, you’ll sell at the bid price. The fund manager then makes a spread around these two dissimilar prices, in what’s known as dual pricing.
To work out the price of the units themselves, the fund manager values all the assets in the fund – how much all the individual companies are worth – and divides this figure by the amount of units in issue. As an example, if the fund has assets worth £500 million, and there are 100 million units in issue, each unit has a value of £5.
These unit trusts can be in an ISA to get the tax free advantage.
The Investments can have a range of risks connected with the them depending on the persons attitude to risk. Generally, the riskier the Investments the better the return.
Investment Bonds
An investment bond is normally a single premium life insurance policy. They have a small part of life insurance that is paid out after a person passes away. However, it is an investment rather than insurance in the universal sense.An insurance company will receive the premium and invest it for income and or capital gains which accumulate until a policyholder withdraws money from the policy. As a policyholder does not receive income from the policy, personal income tax is delayed until certain events occur and the insurance company calculates any gain on a bond. As a result, an investment bond is a potentially tax-efficient way of holding a range of investment funds in one place particularly for elevated rate tax payers.
You can regularly buy investment bonds from life insurance companies and they can be a good way of allowing you to invest in a combination of investment funds that are managed by expert investment managers.
Each bond is usually designed to give benefits for different types of investors but a common element is that they aim to produce long term capital growth and/or generate a long-term return.
The value of your investment in a bond can vary and you may not get back the full amount of your original investment. Early cash-in charges may apply on some investment bonds.
When you invest in a bond you will be allocated a certain number of units in the funds of your choice or those set out by the conditions of the bond. There are often minimum investment levels that may range from £1,000 upwards and can typically be set at £10,000.
Each fund will invest in a range of assets and the price of your units will normally rise and fall in line with the value of these assets.
What are the main benefits of an investment bond?
- Regular withdrawals can be taken.
- You can choose to spend in a range of funds, you can choose a portfolio, or you can choose a combination of both.
- You can usually switch between funds within your bond.
- Tax planning benefits, such as for Inheritance mitigation.
- Tailor the Investment to your attitude to risk
This is based on our current understanding as at March 2014 of current tax legislation and HM Revenue & Customs practice, both of which may alter without notice. The amount of tax relief in fact received will depend on your individual situation.
National Savings
National Savings & Investments (NS&I) present more than a few tax-free products together with a cash Isa, savings certificates (fixed-interest and index-linked) and children's bonus bonds.Prizes and winnings
Winnings on premium bonds and the lottery are also tax free. This is accurate too of other gambling prizes - such as football tools, horse racing, and the proceeds of spread betting.
Junior ISAs
Child trust funds are investment funds for children are also tax free, and can be rolled over into an Isa when they grown-up on your child's 18th birthday.
There are two types of child trust funds: cash child trust funds, which are totally tax-free, and share-based child trust funds which, like stocks and shares Isas, have dividends paid to them with 10% tax already deducted.
Junior Isas replaced child trust funds in November 2011. The whole amount you can invest in 2014-15 is £4,000 - this can be all in one type of account or split between a Junior Cash Isas and a Junior Stocks and Shares Isa.
Go further: Junior Isas - find out the best rates existing for this childrens' savings account.
Education Planning
Sending a child to private school or enabling them to carry on onto university is increasingly becoming a purpose for many parents but unluckily the cost is increasing at an upsetting rate.Starting to plan for a child’s education at birth may appear premature but this is exactly the right time to be considering this option. Making careful decisions at that time can ensure that enough capital is available to meet your objectives and can assist towards possible costs.
Contact us for more details.
Tax Free Savings
Tax-free savings and investments are not general, but there are a few products out there that will leave you without a tax bill to pay.Cash Isas
Cash Isas are totally free of income tax and capital gains tax. They are available to UK residents over the age of 16.
In 2014-15 you can pay up to £5,940 into a cash Isa. You can also toggle previous years Isas to new Isa providers without affecting your current year's grant. It is possible to transfer money held in a cash Isa into a stocks and shares Isa.
Stocks and shares Isas
Stocks and shares Isas aren't totally tax-free, because dividends on shares are paid with 10% tax already deducted. In 2014-15, the total annual Isa allowance is £11,880. You have to be at least 18 years old to invest in a stocks and shares Isa.
You can decide to invest the whole of your allowance into a stocks and shares Isa if you wish, or divide it up accordingly, paying up to £5,940 of it into a cash Isa and the rest into a stocks and shares Isa.
Junior Isas and Child Trust Funds
Child trust funds are investment funds for children are also tax free, and can be rolled over into an Isa when they grown-up on your child's 18th birthday.
There are two types of child trust funds: cash child trust funds, which are completely tax-free, and share-based child trust funds which, like stocks and shares Isas, have dividends paid to them with 10% tax previously deducted.
Junior Isas replaced child trust funds in November 2011. The total amount you can invest in 2014-15 is £4,000 - this can be all in one type of account or tear between a Junior Cash Isas and a Junior Stocks and Shares Isa.
Go further: Junior Isas - find out the best rates available for this childrens' savings account.
National Savings & Investments
National Savings & Investments (NS&I) offer several tax-free products including a cash Isa, savings certificates (fixed-interest and index-linked) and children's bonus bonds.
Prizes and winnings
Winnings on premium bonds and the lottery are also tax free. This is accurate too of other gambling prizes - such as football tools, horse racing, and the proceeds of spread betting.