Rishi Sunak Delivered His Much Awaited Budget Speech

Rishi Sunak delivered his much awaited Budget speech earlier today. It is probably fair to say this is one of the most highly anticipated of all budgets due to the current global pandemic. Speculation beforehand asked whether The Chancellor was going to now take the opportunity to raise taxes to repay some of the £270.6bn* borrowed to fund the pandemic response, or whether now was not the time and to try and pump further into the economy to stimulate some form of economic growth off the back of England’s Coronavirus roadmap.

We have been inundated with ‘hushed’ rumours of Stamp Duty and Furlough extensions which many say had already set the tone for this budget. Just yesterday the suspicions of the extension of the furlough scheme were confirmed with the scheme being extended until September 2021. But did the rest of the budget follow suit?

The team at AWM eagerly listened in this afternoon, and below we have summarised the main points.

*Source, Office for National Statistics

Summary

This was definitely a budget of two halves, Rishi Sunak was very honest in his delivery and stated that the first priority was to protect, support and create jobs but that that was going to come at a future cost. Whilst admitting it was not the time to announce tax rises across the board, The Chancellor did announce several policy changes and tax freezes. We have summarised some of the main points below.

Forecasts

The OBR have predicted that the UK will now have a swifter and more sustained recovery than initially predicted in November 2020.

They estimate growth to be;

4% in 2021

7.3% in 2022

1.7% in 2023

1.6% in 2024 and 1.7% in 2025

Job support, protection, creation (Individuals)

Extension of the Furlough scheme until September 2021. From July 2021 companies utilising the scheme will be asked to contribute a small percentage of the 80% payment.
Self Employed individuals may be eligible for a 4^th and 5^th grant. Those previously ineligible for the self employment grants due to starting businesses in the 19/20 tax year, will now be eligible to apply for the grant but only on the basis they have already submitted their 19/20 tax return.
£20 Universal Credit uplift will remain for 6 months
Living wage to increase to £8.91 in April 2021

Job support, protection, creation (Businesses)

Companies to be eligible for £3,000 funding for the hire of apprentices at any age
“Restart Grant” available for businesses who have not been able to open. Up to £6,000 for non-essential retail, per premises. And up to £18,000 for personal care, and gyms extra.
“Recovery Loan” available to businesses for loans of between £25,000 and £10m where the government will guarantee lenders up to 80% of the debt.
Business rates holiday for 3 months, and then 2/3 discount for the next 9 months.
VAT on hospitality reduced to 5% until 30^th September 2021 and then 12.5% until April 2022 where it will then revert to normal.

Housing

Stamp Duty Holiday will remain in force until 30^th June 2021. Between 30^th June 2021 and 30^th September 2021 Stamp Duty will start at a threshold of £250,000, raising to the usual £125,000 in October 2021.
95% mortgages to be available.

Funding Economic Recovery

Income Tax rates, National Insurance, VAT frozen
Personal Allowance to raise to £12,570 from 2022 and then to remain at this point until April 2026
Higher rate income tax allowance to raise to £50,270 from 2022 and then to remain at this point until April 2026.
Inheritance Tax threshold, Pension Life Time Allowance, Capital Gains Tax allowances all frozen at current rates until April 2026.
Corporation Tax to rise to 25% in 2023 but based on company profits. Companies with profits sub £50,000 will have corporation tax remain at 19%. Those with profits between £50,000 and £250,000 will have corporation tax rates tapered between 19% and 25% respectively. Those over £250,000 will have 25% corporation tax rates from 2023.
Planned rises on duty of beer, wine, cider, spirits and fuel have all been frozen.

For any further information on any of the points above, please do not hesitate to get in contact with your adviser.

Ascot Wealth Management Limited is authorised and regulated by the Financial Conduct Authority reference 551744. Our registered office: Scotch Corner, London Road, Sunningdale, Ascot, Berkshire, SL5 0ER. Registered in England No. 7428363. www.old.ascotwm.com Unless otherwise stated, the information in this document was valid on 3rd February 2017. Not all the services and investments described are regulated by the Financial Conduct Authority (FCA). Tax, trust and company administration services are not authorised and regulated by the Financial Conduct Authority. The services described may not be suitable for all and you should seek appropriate advice. This document is not intended as an offer or solicitation for the purpose or sale of any financial instrument by Ascot Wealth Management Limited. The information and opinions expressed herein are considered valid at publication, but are subject to change without notice and their accuracy and completeness cannot be guaranteed. No part of this document may be reproduced in any manner without prior permission. © 2017 Ascot Wealth Management Ltd. Please note: This website uses cookies. To continue to use this website, you are giving consent to cookies being used.

December 21, 2020January 26, 2022

Mindful Mondays Ep 5

https://www.youtube.com/watch?v=-tjDNaNmxKM&ab_channel=AscotWealthManagement&t=0s

December 7, 2020December 18, 2020

Mindful Mondays || EP 3 of 5

Mindful Mondays Ep 3 of 5

These 15-20 minute videos have been recorded for our staff and clients by our good friend Laura Uglow at True Vitality who does amazing work. Laura is a Personal Trainer, based in Windlesham, with over 15 years of experience in Health, Fitness and Wellbeing. She feels passionately about helping people with their mental health and giving them tools to use in their everyday lives to help alleviate stress, anxiety and feel calmer. We would like to reach out to the local community and extend our resources at this time so please feel free to forward this newsletter to anyone who may benefit from this.

https://www.youtube.com/watch?v=6xCkij0YrTU&ab_channel=AscotWealthManagement

December 3, 2020February 9, 2022

Director, Mark Insley, nominated for Adviser of the Year

Director, Mark Insley, nominated for Adviser of the Year!

Ascot Wealth Management had the honour of ending off a very unprecedented year by our managing director, Mark Insley, being nominated for the highly acclaimed Growth Investor’s Adviser of the Year Award. This award follows last year’s victory in the Professional Adviser Firm of the Year category.

Just because we were working from home, does not mean that it was not a busy year, on the contrary, we were also nominated for the Money Marketing Awards 2020 in the Best Financial Education Initiative (Advice Firm) category and for Retirement Adviser of the year by Moneyfacts.

Commenting on the announcement, Mark said: “This is the perfect way to start our 10 year anniversary year. The Company is going from strength to strength and I am delighted that we are being recognised as Industry leaders, particularly against a backdrop of so much uncertainty. This award is testament to the hard work of all our staff and we are incredibly proud of what we have achieved.”

We look forward to the results that will be made public during a virtual event in December.

November 30, 2020December 18, 2020

Mindful Mondays || Ep 2 of 5

November 23, 2020December 18, 2020

Mindful Mondays by AWM ║Ep 1 of 5

Mindful Mondays by Ascot Wealth Management ║
Episode 1

We here at Ascot Wealth Management know that times are hard. It is now more important than ever to take care of your mental and physical health. This new limited newsletter series, Mindful Mondays, will lead us into the Christmas period so be sure to keep a lookout for it in your inbox for the next 5 weeks. You can look forward to a new video, new recipe and new tips and tricks to take care of yourself every week.

These 10-15 minute videos have been recorded for our staff and clients by our good friend Laura Uglow at True Vitality who does amazing work. Laura is a Personal Trainer, based in Windlesham, with over 15 years of experience in Health, Fitness and Wellbeing. She feels passionately about helping people with their mental health and giving them tools to use in their everyday lives to help alleviate stress, anxiety and feel calmer. We would like to reach out to the local community and extend our resources at this time so please feel free to forward this newsletter to anyone who may benefit from this.

https://youtu.be/WMrf8ZLM214

Mindful Mondays by Ascot Wealth Management ║ Episode 1

You can contact award-winning Personal Trainer, Nutritionist & Fitness Coach
Laura Uglow at laura@truevitality.co.uk

A HOLISTIC APPROACH

Healthy from the inside-out

Studies have shown that the old saying ‘you are what you eat’ could not be more accurate. Find a recipe for Immune Boosting Lentil and Sweet Potato Soup below.

Financial Health

This week’s financial corner talks about recession proofing your finances with some top tips on saving cash during the pandemic. As ever, do not hesitate to contact your adviser for financial advice.

If you would like to receive the rest of the Mindful Mondays resources straight to your inbox, sign up to our newsletter here

September 16, 2020January 26, 2022

Your child turned 18 – What happens to their Child Trust Fund now?

This month will see the first Child Trust Funds (CTFs) turn 18 and thus reaching maturity. This means that many 18-year olds, some of whom will be heading off to university, others potentially embarking on a gap year, are about to receive full, legal entitlement over their plans.

For those lucky enough to be born between 1 September 2002 and 2 January 2011 they were enrolled in a CTF, which has since been replaced with a Junior ISA (JISA). The CTF was set up by the government to kickstart good saving habits, with every account credited with up to £500. Around 25% of these were automatically set up by HMRC if parents did not set up the account before the child’s first birthday. This has meant that there are currently 6 million young people across the UK with a CTF, however, research suggests that at least 1 million of them have either lost track or are not aware that they have one registered to their name. This means that you/your child could have a pot worth £1,000, or potentially even more if parents added additional contributions. If you think your child was entitled to a CTF they can track it here

What happens now?

If the legal owner does nothing then;

If it’s in a stocks & shares (investment) CTF, it’ll be converted to an adult stocks & shares ISA.
If it’s in a cash CTF, it’ll be converted to an adult cash ISA.

What can I do with the cash?

As stated above, if the legal owner leaves the CTF as is, it will convert in to one of two ISAs. Ultimately the proceeds of the CTF are up to the decision of the legal owner. Here we suggest some options.

Put it towards a first home

Consider opening a Lifetime ISA account. This is a special tax-free savings account which gives you a 25% bonus on up to £4,000 saved a year (so a max £1,000/year bonus). You can then use this towards buying your first home.

Invest it for a future need.

As the CTF will automatically transfer into an ISA, consider making this a Stocks and Shares ISA and investing it

Move it to a savings account.

If you wish to access the funds within two years, place the funds into an instant access cash savings account.

If you wish to discuss the best option regarding the proceeds of a Child Trust Fund, please contact your adviser.

For expert advice book your free, no-obligation meeting today.

Did you miss out on the Child Trust Fund? Why not open a Junior ISA for a loved one? You can start with as little as £10 a month. Junior ISAs attract no tax on the earnings up and you are now eligible to save up to £9,000 per year they are a great vehicle to start your young one’s savings journey. Contact your adviser today.

Source: BBC

August 31, 2020January 26, 2022

Stamp Duty Holiday – Not just an under £500k thing!

As you may have already heard, the government has temporarily increased the stamp duty threshold to £500,000 for property purchases in England and Northern Ireland, until 31 March 2021. In other words, there will be no stamp duty charged on properties costing up to £500,000.

Some good news – statistics show that the average stamp duty bill will fall by £4,500 and nearly 90% of people will benefit by paying no stamp duty at all as a result of the stamp duty holiday. This holiday is not just applicable for purchases under £500,000. If you, for example, purchase a property for £600,000 you will only pay stamp duty on the portion above £500,000, so in this scenario £100,000.

Not only that, but those looking to purchase a buy-to-let or second home/investment property will also benefit from this payment holiday. Only 3% stamp duty is due for properties up to £500,000 (previously £125,000). So with depressed price levels vs last year, record-low borrowing costs, ability to use retirement income and a stamp duty holiday, has there been a better time for a long term property investment with a mortgage?

We have 2 in-house brokers who together with your financial adviser will help you decide if this is a good option for you. Contact us today for an obligation-free quote.

This is only for purchases that complete before 31st March 2021.

The full table is shown below.

Explore your options

August 31, 2020January 26, 2022

Meet the new faces

Meet the new faces!

We would like to introduce you to the AWM new starters. Every year we have placement students join us for the year to get experience in the industry by taking them through AWM’s proven training whilst learning the ropes in all aspects of business and how we as a company operate. Claire, Matt and even our compliance manager, Maddie, have all started their careers at AWM through the placement program. We also have people joining us in both the UK office and the SA support office which hold a more permanent role and we are delighted to welcome them to the team.

We would like to extend a warm welcome to all our new starters. It has certainly been a strange introduction to the company given the current global circumstances but the adjustment has set in and they are well on our way in learning more about the AWM. We wish them all the best in their new roles and we look forward to them growing personally and of course within Ascot Wealth Management.

August 31, 2020January 26, 2022

Have you claimed for the second self-employed support grant?

For those whose trade has been affected by the Coronavirus can now apply for the second wave of support from the government. The new Self-Employment Income Support Scheme (SEISS) will pay up to £6,750 and will be the final hand-out for those whose business has been affected due to the Coronavirus.

Businesses that have traded for all three years with profits no more than £50,000 are eligible for the scheme.

The claims window is initially open for a four-day period but anyone who thinks they may be eligible and hasn’t been contacted by HMRC has until October to make a claim.
The first grant in May saw £7.8billion in taxable grants claimed by 2.7million people.

To apply, this time around you will need to confirm your business has been affected by the virus since July 14. If you think you are eligible and have not been contacted by the HMRC, you can go online which will tell you if you are eligible. Click the button below to be redirected to the website.

Am I Eligible?