June 8th was a landmark day for the UK as a shock election result left many contemplating its impact on the UK’s economy.
In reality, a hung Parliament could potentially be a good thing for investors.
Alan Mellor, Managing Partner of Phillip Bates & Co Chartered Financial Services, said: “Unless something changes, we are in a good position.
“A weak government can’t do very much – politicians won’t want to mess with things, which is good news for investments.”
However, Alan acknowledged that the increased likelihood of a second election within the next 12 months could change this outlook.
“The worry, of course, is if this current level of uncertainty gets worse – there could very well be another election soon and this could have a negative impact on long-term investments.
“It is difficult for businesses to make long-term investment decisions at a time like this.”
Alan does, meanwhile, think we could now be edging more towards a softer Brexit.
“As a result of the election, Theresa May now has no clear mandate, which is a better prospect for the economy“ he said.
“The Government are not going to be able to force through anything radical at the moment. Indeed, the pound fell on the night of the election but this was by very little as not a lot has changed, and I don’t think anything will change anytime soon.”
We welcome withdrawal of stamp duty for first-time buyers in ‘positive’ Budget
/0 Comments/in News /by Sarah LoweWe welcomed the announcement by Chancellor Philip Hammond in yesterday’s budget that stamp duty is to be abolished for first-time buyers purchasing properties worth up to £300,000.
Phillip Bates & Co Chartered Financial Planners predicted a reduction in stamp duty for first-time buyers was likely, but that it would perhaps be a temporary one. So far, no date has been announced for when this change will run until.
Alan Mellor, Managing Director of Phillip Bates & Co Chartered Financial Planners, said: “We feel that yesterday’s budget was a positive one as it gives something for everyone.
“There is great news for those looking to get on the housing ladder – no stamp duty for properties worth up to £300,000 is significant. It is worth noting however that this change applies exclusively to first-time buyers – to be eligible, you must have never had a stake in any property before.
“There has been talk that the announcement could hike up house prices and it may well do in the short-term, but this of course is all speculation and its impact remains to be seen.
“We suspect that the announcements relating to housing will be felt most in the South-east of the country and it is notable that plans have been announced to build five new garden towns here too. The towns will be built largely between Oxford and Cambridge – cities known for their focus on technology. Indeed, boosting advances in technology appears to be an underlying theme in this budget and is surely one that is only to be encouraged if we are to make our own way post-Brexit.”
Back in October, Alan also predicted that pension tax relief may come under the spotlight with discussions having stepped up a gear this year in the lead-up to the budget.
He added: “Although there was no announcement with regards to pension tax relief in the budget, we do feel that this an issue that’s bubbling away under the surface and that we may well see an announcement soon.”
A look ahead to the Budget
/0 Comments/in News /by Sarah LoweThe Budget will soon be on its way.
It was announced last year by the Chancellor Philip Hammond that the Budget was to be moved back to the autumn to simplify the process of setting taxes and government spending.
This is the first year of the new system being in action.
As with previous years, Pension Tax Relief is under review, but it is unlikely that this will come to anything.
Currently, if a person is paying contributions into particular types of pension scheme and the contribution isn’t treated as paid net of basic rate income tax relief, they can claim back all the tax relief that’s due (both basic rate and any higher rate relief) from HMRC.
The Budget is expected to take place at the end of November.
The time has come for reviewing and fine-tuning accounts
/0 Comments/in News /by Sarah LoweThe time of year has come for us to review and re-balance client accounts.
Once or twice a year, the team at Phillip Bates & Co Financial Services will review and rebalance accounts to ensure that everything is in working order or if any tweaks should be made.
When we welcome a new client, we concentrate on putting the right plan in place for them and continue to update this plan to ensure that it remains relevant to your particular financial situation.
As part of our relationship, we have regular reviews with our clients to ensure that each individual plan is on track. This takes into account any changes in circumstances.
After speaking with you, we may decide that a couple of changes should be made here or there, which will help your investments in the long-term.
If you would like more information, contact Alan Mellor on 0151 353 1066 or find out more about how we work here.
Meet the team: Helen Brown
/0 Comments/in News /by Sarah LoweHelen Brown is a Senior Financial Planner at Phillip Bates & Co Financial Services, having joined the team in June 2009.
“My whole career has been spent in the Financial Services industry; starting off as a mortgage adviser and then progressing to full financial advice,” Helen said.
“I have always worked for banking institutions but, for the last 15 years have worked in smaller independent firms.
“When I started with Phillip Bates & Co, I specialised in arranging pension income for clients who were retiring. This became my principle role within the business however, with the changes to pension legislation in April 2015, the pensions marketplace started to become much more investment based which means that I have now evolved into investment as well as pension advice and planning.
“I am currently working towards my Chartered qualification, which is recognised in the industry as the gold standard. I am currently half way towards achieving this and hope to be fully qualified in mid-2018. These are advanced financial planning qualifications and, as such, demand a high level of technical knowledge in pensions, investment and tax planning.
“The part of my role that I enjoy most is interacting with my clients. I take great care in looking after them and their interests and am enjoying building long-term relationships that I hope will last for many years to come.
“I Iike to offer a warm and friendly service and hope that my clients would agree that this is what they receive. My very favourable reviews on the website ‘Vouched For’ do seem to reflect this and I am very proud of that.
Connect with Helen by contacting her here.
Inheritance Tax & the property nil rate band
/0 Comments/in News /by Sarah LoweInheritance tax remains a topic of confusion for many.
Essentially, inheritance tax refers to a tax on the estate of someone who has passed away.
The estate might consist of a person’s property, money and possessions.
If your estate is valued at below the £325,000 threshold or you opt to leave everything to your spouse, civil partner, a charity or a community amateur sports club, there will usually be no Inheritance Tax to pay.
If you decide to pass your home onto your children (including adopted, foster or stepchildren) or grandchildren, your threshold will increase to £425,000.
Some estates qualify for an additional threshold, sometimes known as the property nil rate band. This was introduced earlier this year and states that if someone were to pass away with an estate that is above the basic Inheritance Tax threshold, the estate could be entitled to an additional threshold before any inheritance tax is due.
This additional amount, for 2017 to 2018, is up to £100,000. This figure will go up annually.
If you have a question about inheritance tax and would like to ensure that your affairs are being organised in the best way, contact Alan Mellor on 0151 353 1066.
How will tensions in North Korea and Brexit affect financial markets?
/0 Comments/in News /by Sarah LoweIf you have seen the news lately, you wouldn’t be able to miss the ongoing tensions in North Korea.
How will this, coupled with a still uncertain Brexit, affect financial markets?
“It is difficult to say,” said Alan Mellor, Managing Director at Phillip Bates & Co Financial Services.
“Financial markets have been pretty steady and solid. It’s ongoing noise that affects confidence, so the best thing to do is to accept that there will always be short-term issues, but understand that these may or may not have an impact on the world’s economy.
“We will be keeping a close watch on events in North Korea and continue to monitor our client’s accounts and the impact that this could have on their investments.
On August 7th, Conservative MP Kit Malthouse said that Brexit will provide an opportunity for the UK to develop an “independent voice” on foreign policy and claimed that engagement with North Korea and Russia was “absolutely key.”
Speaking to BBC Radio 4’s Westminster Hour, he added: “Brexit is a big opportunity for us to be a more independent voice and obviously as part of the EU we were finding more and more and more that our foreign policy approach was compromised by their need for a collective action.”
On August 29th, Theresa May insisted that China must do more to help bring North Korea’s “illegal and provocative” weapons testing to an end.
Alan Mellor appears on BBC 5 Live’s ‘Wake Up to Money’
/0 Comments/in News /by Sarah LoweOur Managing Director, Alan Mellor, was invited onto BBC 5 Live’s ‘Wake Up to Money’ show on Wednesday morning (June 21st) to discuss the Financial elements of the Queens speech.
Hear the full interview in the podcast below – Alan can be heard from about 30 minutes in:
http://www.bbc.co.uk/programmes/b0070lr5/episodes/downloads
Resolution accredits Bates FS
/0 Comments/in News /by Sarah LoweWe have been accredited by Resolution to provide financial advice to couples in family disputes.
Resolution is an organisation of 6,500 family lawyers and other professionals in England and Wales, who believe in a constructive, non-confrontational approach to family law matters. Resolution also campaigns for improvements to the family justice system.
Phillip Bates & Co Financial Services is the only financial adviser in Wirral and one of a handful in Cheshire to be accredited by Resolution.
Alan Mellor, Managing Director of Phillip Bates & Co Financial Services, said: “Our accreditation is recognition of our commitment to delivering high quality financial planning services to our clients.
“There is no question that our status as Chartered Financial Planners, something we are extremely proud of, would have helped us to be selected.
“Mediation is now obligatory when couples decide to separate and it is vital that they have peace of mind at a very difficult time that they can access the very best legal and financial advice.”
For more information, please call Alan Mellor on 0151 353 1066.
Bates & Co Financial Services welcomes two new starters
/0 Comments/in News /by Sarah LoweBates & Co Financial Services has welcomed two new starters.
Margo Dorozik and Emma Bowen have joined the firm as Client Service Manager and Client Administrator.
Margo, who is from Chester, joins Bates & Co with more than 10 years’ administrative experience and is currently working towards Chartered Status.
She will be working alongside Bates & Co’s Jackie Williams to provide detailed planning work for clients, producing plans, research and reports.
Meanwhile Emma, who is from Liverpool, replaces long-standing employee Sheila Ewing, who will retire at the end of July.
With over 10 years’ administrative experience under her belt too, Emma will be responsible for processing information for clients and ensuring that all paperwork is in order.
Alan Mellor, Managing Director at Bates & Co Financial Services said: “We are delighted to welcome Margo and Emma to the team.
“Both are very knowledgeable and skilled in what they do and I look forward to working with them.
“As a firm, we will be very sad to see Sheila leave the business after more than 20 years and we would like to extend our thanks to her and offer her our very best wishes for the future.”
Election shock sees markets remain steady
/0 Comments/in News /by Sarah LoweJune 8th was a landmark day for the UK as a shock election result left many contemplating its impact on the UK’s economy.
In reality, a hung Parliament could potentially be a good thing for investors.
Alan Mellor, Managing Partner of Phillip Bates & Co Chartered Financial Services, said: “Unless something changes, we are in a good position.
“A weak government can’t do very much – politicians won’t want to mess with things, which is good news for investments.”
However, Alan acknowledged that the increased likelihood of a second election within the next 12 months could change this outlook.
“The worry, of course, is if this current level of uncertainty gets worse – there could very well be another election soon and this could have a negative impact on long-term investments.
“It is difficult for businesses to make long-term investment decisions at a time like this.”
Alan does, meanwhile, think we could now be edging more towards a softer Brexit.
“As a result of the election, Theresa May now has no clear mandate, which is a better prospect for the economy“ he said.
“The Government are not going to be able to force through anything radical at the moment. Indeed, the pound fell on the night of the election but this was by very little as not a lot has changed, and I don’t think anything will change anytime soon.”