Archive for April, 2016

Hey Junior – Start Saving Already!

Posted on: April 29th, 2016 by nwp_admin No Comments

It’s never too early to start thinking about saving for the future. A Junior Individual Savings Account or ‘JISA’ gives children the opportunity to start saving early – via cash, stocks and shares, or a combination of the two – within a tax-free wrapper. According to HMRC, £582m was subscribed to JISAs in 2014/15.

The maximum amount that may be paid into a JISA in the 2016/17 tax year is £4,080 and this can be invested into a cash JISA or a stocks and shares JISA, or allocated between the two. A child can hold either type of JISA or can mix and match between the two. JISAs may be switched from cash to stocks and shares, and back again, so they offer considerable flexibility.

However, a fresh JISA cannot be opened with a different provider in each tax year – the child can have only one cash JISA and one stocks and shares JISA during their childhood, although the cash and stocks and shares components can be held with different ISA providers. A JISA automatically turns into a full adult ISA when the child reaches 18.

Although a JISA can only be opened for a child under the age of 16 by a parent or a guardian with parental responsibility, anyone can pay money into the JISA for the child’s benefit. However, the parent or guardian who opens the JISA will be the registered contact and will be responsible for managing the JISA account and making decisions about any changes to the underlying investments or providers.

The money held within a JISA belongs to the child and the child can take control of the JISA from the age of 16; however, the money cannot be withdrawn from the JISA until they reach the age of 18, (with a few very limited exceptions). Children aged 16 or 17 are allowed to open their own JISA and are also able to open an adult Cash ISA if they wish.

In order to be eligible for a JISA, a child has to be living in the UK and aged under 18. Until relatively recently, children who were born between 1 September 2002 and 2 January 2011 were only eligible for a Child Trust Fund (CTF). However, following changes that were introduced in April 2015, those CTF savings can be transferred to a JISA instead.

Calling A Halt To Jargon Juggernaut

Posted on: April 21st, 2016 by nwp_admin No Comments

At Nexus Wealth Planning we are conscious of the need to ensure we don’t confuse anyone with jargon. It is very important that our clients absolutely understand what our recommendations mean for them.

In an industry which seems awash with complex and confusing terminology, this can at times feel like fighting a losing battle!

However, hope may be on the horizon with news that the Association of British Insurers plans to design a guide to simplify the language used for pensions.

It has proposed using simpler language like: “You can keep your pension savings where they are” and “You can take your whole pension pot in one go” instead of existing terms.

Yvonne Braun, ABI director of policy, long-term savings and protection, said it is vital that pension language reflects the best interests of customers.

“The industry recognises that pension language can be confusing and is working to make sure more people understand the new options available to them for their retirement.

“Customers who are engaged in their pension are better able to make decisions that suit their individual circumstances so it’s important that we make these options as clear and comparable as possible.”

A consultation will run until 19 June and it is hoped many from the industry will contribute to the guide so that it establishes a useful lexicon.

More info



Is The Cameron Case A Lesson For Us All?

Posted on: April 14th, 2016 by nwp_admin No Comments

Prime Minister David Cameron’s tax affairs have been in the headlines a great deal recently, including news that his mother transferred £200,000 to him in order to avoid paying Inheritance Tax (IHT) in future.

Now, not everyone has that kind of cash to throw around, but the IHT threshold is set at £325,000 for an individual and, with ever-rising property values, could more people start to be affected?

Are there some prudent steps you can take to ensure your assets do transfer fully to your loved ones on death?

The answer depends very much on your personal circumstances, as the following article explains.

How does inheritance tax work?

Taxman Benefits As Pension Freedoms Prompt Dash For Cash

Posted on: April 6th, 2016 by nwp_admin No Comments

One of the biggest beneficiaries of the pension freedoms introduced last year is set to be Her Majesty’s Revenue and Customs as savers rush to release £6bn from pension pots.

New figures from the Office for Budget Responsibility suggest the Treasury will net a windfall of £900m by April from tax paid by people accessing their pension savings in the first year of pension freedom – almost a third more than had previously been expected.

The pension rules changed last April meaning any direct contribution savers over the age of 55 could have unfettered access to their cash.

The Association of British Insurers (ABI) calculates that £3bn was paid out as lump sums to just over 213,000 people in the first nine months following the reforms and another £2.9bn was taken through income drawdown plans.

HMRC treats any income taken as if it were an annual income, pushing some savers into a higher income tax bracket when withdrawing large chunks.

More info:-
Professional Adviser