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Chartwell Finance Management's approach to investment is different to that found at many High Street Financial Advisers. All too often we hear of advisers who, when asked for advice on how to invest, immediately start with .. \42Well you should put some in an ISA and the rest in a Bond\42. This makes us cringe, because we believe this is the wrong way round. ISAs and Bonds are just 'wrappers', not investments in themselves. Its a bit like going into a green grocers and asking for a 'Brown Paper Bag and a Punnet please', without specifying what should go in them. In reality, you should first discuss what vegetables or fruit you want to eat (say, carrots and strawberries for example) and then the grocer advises and provides the most suitable carrier, i.e. a paper bag and a punnet. At Chartwell Finance Management we first determine what your requirements and objectives are for your proposed investment, including accessibility, timescale, growth or income, and most importantly, attitude to investment risk. We look closely at your current and future tax positions. This enables us to recommend the underlying investments and assets classes which may be, for example, a combination of Corporate & Government Bonds, Unit Trusts, and a Distribution Fund (say). Only then will we decide which are the most appropriate 'wrappers' to use - e.g. Bare Unit Trusts, ISAs, Onshore or Offshore Bonds, Pension Plans etc., In every case, we give a bespoke service and every client gets advice appropriate for their own particular circumstances - there is no preset 'formula' advice or restricted use of 'panel' products as often seen with some big High Street advisers, and, of course, we are truly independent. |
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We have taken particular care not to head this section as being for 'Pensions'!. Formal Pension Plans, in their many forms, are excessively complicated, and we believe quite strongly that the use of formal Pension plans is only just an option for part of the planning you should make to ensure a financially healthy retirement. Every case is decided on its own merits, but suffice to say that we will give consideration to many ways of accruing the capital required to fund post-retirement income; including Unit Trusts (possibly within ISA or Bond Wrappers), property, etc., etc.,. Richard Anderson has passed all three of the CII Advanced Pension Papers which, when linked with his deep interest in investment, gives him special abilities in this area. See his entry under 'our advisers'. |
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If somebody asks 'Can I have the cheapest mortgage please?' what DO they mean? It's the one with the lowest interest rate isn't it? Well, that all depends on how long that interest rate applies. For example, some mortgages advertise a very low rate, but usually this is just an introductory rate which can increase quite dramatically in a short period of time. Some have expensive penalties if you repay the loan early (in whole or in part) and some even have extra fees at the outset,,,,,, So you can see the point. There is more to it than the headline rate. John Boyle and David Rankin both have the Chartered Institute of Bankers' Certificate in Mortgage Advice and Practice (CeMAP) which they both passed 'With Merit'. They should have passed as well, if we remember that John was a Lending Manager in a High Street Bank and David was a Branch Manager for a major Building Society (now a Bank)!. We are INDEPENDENT mortgage brokers and provide advice covering the whole of the mortgage market. We have access, we believe, to almost EVERY mortgage scheme from every lender. We use computer comparison programmes together with out own technical knowledge and analysis in a way that many other brokers do not. We aim to obtain the mortgage that you will be happiest with - overall. When we have recommended which mortgage we believe is best for you, we will take you through the application process and help you at every point - survey, special reports, solicitors, exchange of contracts and completion. The Financial Services Authority do not regulate some forms of mortgage. Your home may be repossessed if you do not keep repayments on your mortgage. We are remunerated either by :
Typical Fee - £250 |
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'Equity Release', or a 'Lifetime Mortgage' as it is otherwise called, has become more and more popular as house prices have continued to rise, especially amongst those who have retired. Both David & John have the Certificate in Lifetime Mortgages qualification which authorises them to give advice in this field. When coupled with their Building Society and Banking backgrounds, they have special expertise in this area. Don't worry, they do not 'push' these schemes, in fact they often find themselves talking clients out of them!. The expression 'Equity Release' covers a number of types of scheme in which the capital locked up in your house can be released for you to spend. Some schemes buy some or part of the house for you and let you remain living in it, whilst others lend you money against the secuity of the house. In these latter schemes you make no payments at all of either capital or interest. Instead the interest is added to the loan and it, in turn, attracts more interest. This compounding of the interest means that the debt rises ever more quickly but all the schemes we offer provide a 'no negative equity' guarantee. We can offer lump sum and/or 'income' schemes which allow you to draw the loan amount as a monthly payment. Lifetime Mortgages are only appropriate in our later years and, in general, they should only be used as a last resort. All the Equity Release schemes that we offer are from members of SHIP. |
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This is an area of advice in which we have particular technical expertise. We regularly come across two reactions when enquiring about clients' Inheritance Tax (IHT) position : \42Oh, we've already taken care of that with our Wills' or \42Oh, I've no IHT problem, because my Accountant or Solicitor will surely have mentioned it if I had\42 Almost without exception we find that Wills often fail to make use of the most modern wordings to properly mitigate IHT, without putting jointly held assets potentially at risk. All too often we see Wills which pass the deceased's share of the domestic house DIRECTLY to a trust, which in turn allows the surviving spouse to continue to reside there. In many cases this is potentially very dangerous especially if the final beneficiaries die, divorce, remarry, or become bankrupt. Improved Will Trust wordings, using Nil Rate Band planning, are available which give the survivor full ownership of the house, rather than merely the right to reside in it. We can advise you and your Solicitor about the amendments required. Secondly, most people do not realise that when they consult a Solicitor or Accountant, it is only incumbent on the Professional to talk about IHT if you ask them to; often the professional does not have sufficient information about you to either identify an IHT problem or to advise you properly on how to mitigate it. Therefore, if your other Professional advisers have not mentioned it, do not assume that IHT is not hovering over you . Every Inheritance Tax case is different and will need a different solution. Unlike many other advisers, our first resort is usually NOT to try and sell you some basic Life Assurance product using a Life Company Trust, although we accept that these products have a useful role. If we are consulted soon enough, we usually find that giving advice to a Solicitor on drawing or re-drawing the Will in such a way that the Nil Rate Band of the first to die is properly utilised, will help many married couples. We also use some very specialist Lifetime Trusts that can avoid some of the other pitfalls, such as those regarding gifts with reservation. John Boyle & Janet Allen have the specialist expertise that is required to help here, see their descriptions under 'Our Advisers', and we will gladly liaise with your Accountant and/or Solicitor as necessary. The FSA do not regulate all forms of Inheritance Tax Planning |
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'Offshore Banking & Saving' sounds very glamorous and many people regard it as only being of use to the hugely rich and famous. In fact, it is available for alomst anybody, but why do it? Firstly, lets clear up some myths. Offshore Banking in Europe is not a Tax Evasive exercise. It is quite legitimate and the EU Savings Directive brings offshore bank accounts within the scope of taxation. For UK Residents, interest earned on Offshore Bank Accounts is taxable as Income in UK. UK Resident savers have two options: 1) They can either have a 'retention' tax deducted from the interest when it is paid (currently 15% of the interest paid which will rise to 20% and eventually 35%). Any Retention Tax paid offshore can be offset against any UK Income Tax that may also fall due. or 2) Savers can allow their offshore deposit taker to advise the UK HM Revenue & Customs of the interest paid and HMR&C will collect the tax due in UK. So Income Tax is still payable but the offshore accounts benefit from the gross 'roll up' of interest. See our other topic 'Offshore Bonds' for a way of deferring the payment of tax in UK. |
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Offshore Bonds provide a way of deferring the payment of tax on Income & Gains on cash savings and collective investments such as Unit Trusts.
The
topic 'Offshore Saving' should also be read in conjunction with this topic.
Janet & John have particular expertise in the area of Offshore Investment. They can offer UK Residents a way of deferring the payment of Income Tax on offshore savings. There is potential to defer the tax payment almost indefinitely.
'Offshore Investment Bonds' are offered by most of the well known UK Life Offices via an offshore subsidiary. Those companies used by Chartwell are mostly based in the Isle of Man or Dublin, Eire.
An
Offshore Bond can be used to shelter Offshore Investments from ongoing UK
Taxation. UK Income Tax only becomes payable on any gain when it is withdrawn from the Bond, and only on that part of the withdrawal which is deemed to be a 'Chargeable Gain'. A Chargeable Gain is any withdrawal over and above the cumulative limit of 5% of the initial investment per annum. e.g. If you withdrew 34% of your initial investment in year 6, then 4% of the withdrawal would be regarded as a 'Chargeable Gain' and would be subject to Income Tax in UK. This feature allows the timing of the payment of the tax to be controlled by the investor.
When coupled with the appropriate use of specialised Trusts the payment of Income Tax can be deferred completely and even Inheritance Tax can be avoided.
In the past, Offshore Bonds were expensive to the extent that their costs exceeded any benefit that could be offered by am Offshore Savings Account.
But now, John & Janet can offer a very low cost product which is appropriate for both Interest Bearing Offshore Accounts and/or Unit Trusts. They have developed this product over a number of years by working in conjunction with Offshore Life Offices, Deposit Takers and Banks.
The
structure of the product and its charges vary according to individual
circumstances. The product is not available 'off the shelf' and can only be
provided as part of our normal formal advice process. It is not appropriate in
every case and is generally only used for investments in excess of £100,000.
Please note that this is not a tax avoidance scheme, it merely defers the
payment of the tax that is due.
Please contact either Janet or John for information on this product, and for Offshore matters in general. |
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John's background in Banking gives him extra knowledge relating to Business Finance which complements that provided by your Accountant and Solicitor. There are many ways of financing your business, some more commonly known than others. This extra experience is unique amongst local IFAs. |
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Registered users can create an action list of financial issues which they need to sort out, or need advice about. Help is available via this web site, and many actions can be dealt with quickly on-line. To register (or log back in), please click here. |
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Investment Advice for income and/or growth. Planning for a financially secure retirement. Mitigation of taxation (including Inheritance Tax). Buying a House or raising money against it. Protection for you and your family in the event of death or illness. The Financial Services Authority do not regulate some forms of mortgage. Your home may be repossessed if you do not keep repayments on your mortgage |
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