Please CLICK HERE to view our tax tables, outlining the key tax data in George Osborne’s Budget of 21 March.

The Chancellor unveiled a range of measures that left no doubt that the ‘age of austerity’ is not yet over – though thanks to a steady stream of pre-Budget announcements and leaks, Mr Osborne had little to offer in the way of surprises. The Budget highlights included:

• The personal allowance will be increased to £9,205 in 2013/14, but the higher rate threshold will be reduced by £1,025 to £41,450.
• There will be a limit on the maximum amount of income tax reliefs that can be claimed from 2013/14.
• As expected, from 2013/14 there will be a drop in the higher rate of income tax from 50% to 45%.
• The so-called ‘mansion tax’ has taken the form of higher stamp duty on house sales over £2 million.
• Child benefit is to be phased out where income is over £50,000.

We trust that you find the enclosed tax rates useful, and that you find them to be a helpful basis for a discussion with us about your financial future.

Whilst it is debatable whether this will happen or not, what is certain is that the Budget is set for March 21^st   and therefore, any such announcement could be effective from this time.

If you are considering making a lump sum Pension contribution in the 2011/12 tax year (ending on 5/4/12), we would therefore suggest that this is done prior to Mr Osborne’s speech, in order to safeguard your tax relief.

Should you be interested in discussing this in further detail, along with any advice or suggestions we have for how the contribution could be applied, our advisers would be happy to talk to you. Please speak to your usual contact or speak to Peter Brydon on 01604 621421 or via email at pbrydon@caves.co.uk

Benefiting from active management and exposure to a broad range of asset classes, Totus has been able to ride out market volatility over the year, which has witnessed uprisings in the Arab world, natural disasters in Japan, an escalation of the Eurozone sovereign debt crisis, a surprise credit rating downgrade for the United States; not to mention a raft of disappointing economic data signalling a possible slowdown in the global economy.

Please click on the below link to see the full article.

totus-outperforms-industry-benchmarks

No miracle cures were promised as the Chancellor pledged to do ‘whatever it takes to protect the UK economy’ in his long awaited Autumn Statement. A sombre chancellor, George Osborne, blamed lower than expected growth on the sovereign debt crisis in the Eurozone as he announced that growth expectations were being downgraded, with the UK forecast to narrowly avoid recession. The UK economy is now expected to grow by 0.9% this year (compared with 1.7% previously forecast in March) and 0.7% next year, down from the 2.5% forecast in March.

The Government risked a fresh clash with unions after the Chancellor announced plans to cap public sector pay rises to 1% when a current wage freeze ends. He told MPs that further restraint on public sector pay was needed from 2013/15, saying the Government could not afford the 2% rise assumed by some departments. Local government and health workers are among millions of public sector workers whose pay has been frozen for two years, which has worsened the already bitter dispute over pensions.

There were, however, a number of announcements aimed at stimulating the ailing economy. Some £30billion of new infrastructure projects were unveiled; building roads, railways, power stations and schools. This includes the widely anticipated improvements to the A14 in Kettering, aimed at reducing congestion. Other popular, headline-grabbing changes include the planned 3pence rise in fuel duty in January being cancelled; the largest ever cash rise in the basic state Pension, tax incentives on new business start-ups and the government incentives to firms to encourage youth employment.

John Naylor, a Stockbroker at Cave & Sons said: “We are cautiously optimistic, with much of Europe appearing to be heading into recession, primarily caused by a lack of confidence in countries’ willingness to deal with their debts. The Chancellor has offered no silver bullets to cure all of our economic ills. It’s extremely important that the market continues to view the UK as being able to service its debt; this is what is causing the perceived ‘weaker’ Eurozone nations so much trouble of late. The infrastructure projects, funded largely by private money, along with the other key stimulus measures announced should however really make a difference on the ground, giving local business improved transport links and a timely boost to the struggling construction sector.”

Stockbrokers Cave & Sons have put their money where their passion is – sponsoring a client in his successful bid to be crowned a triathlete world champion.

Mike Smallwood has been a client of the Northampton based firm for a number of years – and approaching his retirement years has only made him faster. The 65-year-old from Daventryflew to China earlier this month to compete in the 2011 Beijing ITU Sprint Triathlon World Championships.

With support from Cave & Sons Ltd Independent Financial Advisory arm, Mike came first place in his age group – swimming 750 metres, cycling 20km, running 5km and crossing the finishing line in a phenomenal 1hr 17min and 3 seconds.

Gregg Taffs, from Cave & Sons, said: “We are delighted to have supported Mike in his quest to become World Triathlon Champion. To be competing competitively at an age when most of us will be taking it easy, takes focus and determination and his achievement in Beijing deserves recognition and places him at the very top of his sport.

“At Cave & Sons we deal with thousands of people who are planning for, close to or enjoying their retirement years and it is fantastic to be associated with Mike’s success. He illustrates perfectly that with the right planning in place, far from being something to fear, reaching retirement age can open up a host of opportunities.”

Mike added: “A big thank you to Cave & Sons. Equipment and travel is expensive so sponsorship is extremely important to help defray some of these costs and enable me to stay fit and healthy and then compete locally, nationally and internationally.”

Cave & Sons, Northamptonshire based stockbroking and financial advice firm, is teaming up with Peterborough-based Greenwoods Solicitors LLP to deliver the event at Oundle School on Wednesday, 19 October 2011.

It is for people aged 55 plus, who are approaching, considering or in their retirement years, concerned to preserve their assets both for themselves and to avoid or mitigate inheritance tax for their families. The event will start with refreshments at 10am, followed by focused presentations. The rest of the day will be dedicated to 15-minute one to one consultancy slots.  Attendees are invited to book a free of charge appointment with the experts of their choice – these one to one appointments will run every 15 minutes from 11.30am to 3pm.

The experts on hand on the day will be:

• Andrew Cockerill, Chief Executive of Cave & Sons, an expert in discretionary and advisory investment management and all aspects of stockmarket investment, whose clients include private clients, Trusts and Charities.
• Stephen Patch, from Greenwoods, a qualified senior solicitor focusing in private client law – including wills, inheritance tax planning and asset protection.  He is a member of the Society of Trusts & Estates Practitioners, the specialist organisation for these areas of work. 
• Gregg Taffs, who holds the coveted Chartered Financial Planner status, regarded as the pinnacle qualification within the industry.

Gregg Taffs from Cave & Sons said: “We are living in a volatile world, with financial changes happening on a daily basis, so it is increasingly important to seek professional advice in order to secure income and wealth for your families rather than for the tax man.”

Stephen Patch, Senior Solicitor at Greenwoods, added: “I am relishing the opportunity to be part of an event that can add real value. The challenge of ensuring that a client’s affairs are in order and that their loved ones are taken care of is at the forefront of what I do. To be able to offer clients the very best legal and financial expertise at one event makes this an opportunity not be missed.”

To book your place at the Masterclass and Advice Centre simply ring or email Leah Pearson at Greenwoods Solicitors on 01733 887817 – lvpearson@greenwoods.co.uk – confirming whether you will be attending the presentation and requesting the one to one slot of your choice.  You may book with more than expert if you have diverse advice requirements.

Spaces are limited and will be booked on a first come basis – so book early to secure your preferred time slot.

It is disturbing to note that this year the Tax Freedom Day (as described by the Adam Smith Institute), the day in the calendar year when we finally stop earning to pay the tax man and start earning money for ourselves fell on 30 May 2011.  Thanks to the rise in VAT designed to reduce the UK’s debt burden this is three days later than last year, and ten days later than it was in the mid 1990s.

The fact that nearly half your income is now being taken as tax might come as a bit of a shock – particularly given that basic rate tax is only 20%. And this does not even take into account the impact of VAT and National Insurance which add to the Government take but are rarely considered in the same vein.

It is therefore increasingly more important to review your personal situation and look to minimise your tax burden where ever possible.

Whilst the following are oft repeated options to consider, they do bear further consideration to ensure that you are taking full advantage of the tax benefits whilst they are still available.

• Invest money in a Pension: not only will this help secure your retirement but you enjoy tax relief at your highest tax rate. For those in the higher tax brackets the tax savings can be considerable. The use of salary sacrifice can further enhance the savings through reductions in National Insurance liabilities for both employer and employee.

• Use your ISA allowance: when you are investing money for longer term objectives, using the tax efficient opportunities available could save you a significant amount.  Try using your allowance at the beginning of the year rather than joining the rush at the end. Simple I know but every year there is a rush in to invest money in March after paying tax for the whole year!

• Remember you have a CGT allowance: if you invest larger amounts in growth investments, utilising your annual Capital Gains Tax allowance will also save you money. Even if you exceed your allowance the tax rate may be lower than the rate applicable on your income.

• Plan your inheritance: whilst it might not save you money, planning your estate to minimise the impact of inheritance tax could help reduce the impact on your heirs.

Whatever your tax situation, we strongly advise seeking professional advice. Cave & Sons can be contacted on (01604) 621421 or by email at enquiries@caves.co.uk.

We all know that with current interest rate levels, anyone looking to boost their income by way of the interest that they receive from cash deposits has seen this fall dramatically over the last few years and with continued uncertainty over the health of the UK economy, it is feasible that this situation may continue for some time to come.

One option available to people to generate income from their savings is that of an Immediate Vesting Pension. This is an often unused or even un-considered route, but can provide a highly attractive yield, with no underlying investment risk.

Anyone under the age of 75 (and aged 55 or over) can contribute up to £3,600 per year into such an arrangement and receive income tax relief at their marginal rate. In any event, you would receive basic rate relief, meaning that you would actually contribute £2,880, with £720 instantly being added to your investment. This is even the case for non-taxpayers, effectively meaning a free ’gift’ from the tax man!

As an example, for a man aged 70, the figures would work like this:

Paid in:

Contribution – £2,880

Tax relief – £720

Paid out – £3,600

Tax free cash sum of £900 (25% of £3,600)

£152.68 annual income (based on single life, level, yearly in advance)

After allowing for the initial tax relief and cash sum, along with the first year’s income payment, the above example would equate to a yield for the first year of 8.35%, along with an ongoing yield of 7.7% for life, guaranteed.

Whilst the figures involved are relatively small in isolation, these could accrue over time to provide a useful supplement to your, or perhaps, your (non-taxpaying?) spouse’s income. With the Coalition Government looking to tackle the burgeoning debt mountain through increased tax revenues, it is sensible to take advantage of every tax break one can, where possible and this does just that.

If we you would like any further information about the above or offer any other assistance, please do not hesitate to speak to your usual Cave & Sons advisor or call 01604 621421 to speak to one of our team.

Golfers of all abilities, representing businesses from around the county, teed off at Overstone Golf Club in Northamptonshire earlier this month to battle it out for the Northamptonshire Chamber of Commerce Golf Society’s Spring Cup.

Players were challenged to score high, with the event adopting the Stableford scoring system – which involves scoring points based on the number of strokes taken at each hole. Unlike traditional scoring methods, where the aim is to have the lowest score, under Stableford rules, the objective is to have the highest score.

Andrew Cockerill, Chief Executive of the county’s stockbroking and investment management firm Cave & Sons, took first place on the podium, scoring 35 points. In second place was Bill Oliver, from DBFB Communications and in third place was Andrew Faulkner from Blue Sky Print Services.

Newsflash – New NS&I Index Linked Savings Certificates – Should you get them while you can?

The government has recently launched its latest issues of the National Savings and Investments (NS&I) Fixed and Index Linked Savings certificates. Of the two the Index- Linked Certificate is likely to generate the most interest as, whilst the offer is not as generous as previous offers, it still provides 0.5% above inflation (RPI) over a 5 year term. With RPI currently at 5.3% (April) the initial equivalent gross return for basic rate tax payers would be 7.25%. For those paying the higher rates of tax the equivalent gross return is 9.6% & 11.6% respectively. The maximum investment per investor though remains at just £15,000.

Whilst inflation is expected to fall back over the next year or so, it has proved to be stubborn and the Bank of England has revised its inflation expectations a number of times over the last year and many commentators are becoming concerned that inflation is gaining a foothold.

This offer is therefore likely to prove popular, providing an element of protection in these uncertain times.

Certificates can be purchased over the phone, online or by telephone. If you would like to discuss their suitability or otherwise as part of your investment planning please either contact your usual Cave’s adviser or  contact Gregg Taffs via email at gtaffs@caves.co.uk or phone 01604 621421.

The government has set a target of £2 Billion which given past experience may be met within weeks rather than months.