Changes to STUDENT LOANS & TUITION FEESAnyone starting higher education courses from September 2012 will be subject to a new regime governing Student Loans and Tuition Fees.It will be possible for tuition fees for courses in universities and colleges to be increased to £9,000 p.a. ( and there is no restriction on fees charged by private colleges and universities). Government loans will have interest charged at a rate between the rate of inflation and inflation plus 3%, from the outset (currently only 1.50%). This is a major change. Repayments will start when earnings exceed £21,000 p.a. Taking account of the additional living costs and a modest rate of inflation, a total cost of £50,000 for a university course is not far off. Financial planning now could help to relieve the eventual debt burden.
Market statistics•Latest figures from the ABI (Association of British Insurers) show the UK insurance industry paid out over £147,000,000 PER DAY during 2010 to pensioners and long-term savers. •76% of all UK life & pensions business was arranged by independent financial advisers in 2010 (up from 68% in 2009). •Just 13% (26%) was sold through tied agents of the insurance companies and 11% (6%) sold directly to the public.
Lasting Power of Attorney No longer "News" but still worth a comment ! The Mental Capacity Act 2005 introduced Lasting Powers of Attorney (LPAs) in October 2007. After that date no new Enduring Powers of Attorney can be issued. Those already drawn up will remain effective as before but the new form of LPA is profoundly different. Welfare and care issues can now be covered by the Power of Attorney, as well as financial matters. There are two separate forms of LPA and each must be registered before it can be used. For guidance contact us or see www.guardianship.gov.uk
Changes to PensionsChanges to the Annual Allowance for pension contributions were announced on 14th October 2010. The maximum Annual Allowance (AA) for 2010/2011 was £255,000 with personal contributions being limited to the greater of 100% of earnings or £3,600. For Tax years 2011/2012 to 2015/16 the limit was reduced to £50,000. For 2016/2017 onwards we expect the limit to be indexed. Unused relief can be carried forward from the previous three years and there are transitional arrangements to begin with. Where large contributions have been paid or are made by regular contributions throughout the year particular care is needed. Input periodsThe amount taken into account for the tax year is the total of all contributions made during an input period that ends in the tax year. Input periods depend on the individual plan or scheme and do not automatically run to the end of the tax year. This means that a contribution that was made in one tax year may be taken into account in the next. The end date of the input period can sometimes be changed to fall in the current year, for example.
© 2011 Andrew Dickson Limited - chartered financial planners
email: enquiries@andrewdickson.co.uk
Welcome
We hope what you find here will lead you to a more productive and less
complicated financial world.
Our main aim is to advise individuals regarding their investments and assist
with their financial planning.
We also advise businesses about Employee Benefit arrangements and
corporate protection.
From experience we have found that building client relationships over the
long term helps everyone involved to benefit. We have in fact worked with
the majority of our clients for a considerable number of years.
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News
Changes to Student Loans &
Tuition Fees
Anyone starting higher education
courses from September 2012 will be
subject to a new regime
governing.........
Market statistics
Latest figures from the ABI show the
UK insurance industry paid out over
£147,000,000 PER DAY during 2010
to pensioners and long-term
savers......
Lasting Power of Attorney
No longer “News” but still worth a
comment.....
Changes to Pensions
Changes to the Annual Allowance for
pensions contributions were
announced on 14th October 2010...
