Lowes Magazine Issue 116

INSIDE TRACK

Keith Hanna SADLY, WE HAVE TO ADVISE OF THE PASSING OF KEITH HANNA, OUR RETIREMENT PLANNING Manager, who died suddenly in September. Keith joined Lowes in 2016 and was an invaluable member of the Lowes family. As manager of our Pensions Team, Keith used his decades of experience and expertise in the area of pensions and tax to great effect in helping many clients structure their retirement plans and draw their retirement income in the most tax efficient way. He was highly regarded by his colleagues, both for his expertise and his quick wit and humour,

having the remarkable talent of blending the professional with being fun to work with. He will be sorely missed by all of us here at Lowes. Our thoughts are with his family.

Video consultancy AS A RESULT OF THE PANDEMIC WE HAVE HAD TO FIND new ways of working, one of which has been to employ video software to conduct our client meetings. Despite being new to both our clients and Consultants, these online meetings have been very successful, enabling Lowes to continue to deliver advice in a personal way, albeit not face-to- face in the same room! If you’ve not had a chance to have a video meeting as yet and would like to know how to do so or to try it out, please call us on 0191 281 8811 or email at client@Lowes.co.uk . If you are unfamiliar with this kind of technology, our technical team can help. Grandparent carers’ NI credits GRANDPARENTS CARING FOR UNDER 12S CAN CLAIM for National Insurance (NI) credits even if care is being provided virtually due to the coronavirus, for example via phone, FaceTime, Zoom or other video facilities. National Insurance credits can be claimed for the financial years 2019 to 2020 and 2020 to 2021. NI credits can be useful in helping to close any gaps in National Insurance (NI), as well as building up the necessary 35 qualifying NI years to get entitlement to the full State Pension. Grandparents need to be below State Pension Age to claim the credits. A useful factsheet can be found on the www.gov.uk website .

HMRC sees IHT revenues fall

INHERITANCE TAX (IHT) RECEIPTS FELL FOR THE FIRST time in a decade, in the 2019/20 tax year, down 4% year-on- year to £223 million. Fewer than four in 100 UK deaths in the period resulted in an IHT charge. A major reason for this is the introduction of the Residence Nil-Rate Band tax-free threshold in the 2017-18 tax year. This legislation meant that, subject to certain criteria, in addition to the main £325,000 per person IHT Nil Rate allowance, individuals could pass on another £100,000 from wealth in their primary home to a ‘direct descendent’ tax free. The figure has increased by £25,000 each year, reaching £175,000 at the start of the current tax year. The Residence Nil-Rate Band is now an important part of tax planning for individuals and couples. Your Lowes Consultant can explain it in more detail or call 0191 281 8811 and we will arrange for someone to speak with you.

Residence Nil Rate Band 2017/2018

£100,000

2018/2019

£125,000

2019/2020

£150,000

2020/2021 £175,000 2021 onwards: increase in line with the Consumer Price Index

Make your money work. Best bank & building society accounts Type Amount Provider Account

Follow us for company updates

Gross Rate

Contact

Unrestricted instant access accounts

Principality Building Society

0.8% www.principality.co.uk

Online

£1 +

Web Saver 1

@LowesFinancial

Fixed rate bonds Online, telephone or postal

Lowes Financial Management

www.alrayanbank.co.uk

£1,000 - £85,000 Al Rayan Bank 1 Year Fixed Term Deposit

1.27% 2

www.alrayanbank.co.uk

Online, telephone or postal

£1,000 - £85,000 Al Rayan Bank 2 Year Fixed Term Deposit

1.36% 2

Online

£1,000 - £85,000 Bank of London & the Middle East 3 Year Fixed Term Deposit1 1.45% 2

www.blme.com

Notes 1 Must be opened and managed online. 2 This is the ‘expected profit rate’ under Sharia compliant accounts.

Measures of inflation - The average change in prices of goods and services over a 12 month period to August Retail Prices Index (RPI) 0.5% Consumer Prices Index (CPI) 0.2%

Covershot: Braies lake in background of Seekofel mountain in Dolomites. Photo: Shutterstock.

Sources: Providers’ websites, Office for National Statistics, www.thisismoney.co.uk, www.moneysupermarket.com, www.moneyfacts.co.uk 15.10.2020. All accounts subject to terms and conditions.

2 LOWES Issue 116 · Published October 2020 The content of the articles featured in this publication for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts. Levels and bases of, and reliefs from, taxation are subject to change and their value can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future results.

Tell a friend