Principle First highlights budget plans to make Venture Capital Trusts more attractive

Wed, 26 May 2010 17:16:42 GMT

Principle First has registered extremely strong demand for Venture Capital Trust (VCT) investments driven on the one hand by the VCT's numerous tax advantages, but also by proposed positive changes in VCT legislation which were announced in this year's budget, which if passed should allow VCTs to invest in a wider range of small and medium-sized enterprises (SMEs) with up to 250 employees, and market capitalisation up to £15m.

Gareth Flanagan, managing director of Principle First, said: "VCTs offer an unbeatable 30% tax relief and there are now very innovative VCT models available which have very effectively minimised risk. As the top tax bracket has now risen to 50%, VCTs are a more attractive investment than ever, particularly for high earners."

Principle First believes the recent increased demand is due to the market conditions which have made VCT investments extremely favourable at present. In the current economic environment, where bank lending to SMEs is relatively difficult to obtain, the UK's most dynamic companies are looking around for alternative sources of finance - and see VCTs as an attractive option. Consequently, VCT managers have never had such a range of good deals coming across their desks, and the quality and standard of companies where they invest has never been so good. VCT investments offer a 30% upfront income tax relief on investments of £3,000 - £200,000.

According to Principle First, the Octopus VCT, which minimises investment risk, and Alternative Investment Market (AIM) VCTs have also benefited. AIMs work best when investing in companies with capitalisation towards £15m, and as such are poised to benefit strongly from the budget proposals to relax investment rules.

VCTs are a valuable and highly tax-efficient strategic investment which can be used in conjunction with Individual Savings Accounts (ISAs) and a personal pension, as part of a rounded, balanced and tax-streamlined financial plan.

Notes to editors:
The information contained in this press release is intended for journalists only. It does not constitute financial advice and is not intended to form the basis of making financial decisions. To obtain financial advice on any of these topics, please contact Principle First for a free, no-obligation consultation with a qualified adviser.

About Principle First:
Principle First Chartered Financial Planners is one of the leading UK independent financial advisers and distributors of mortgages, insurances, pensions and investments. In 2008, Principle First became one of the few financial advisers to achieve the status of Chartered Financial Planners.

Principle First sees rising demand for Guaranteed Investments

Thu, 20 May 2010 10:02:59 GMT

Principle First reports guaranteed investments are rapidly gaining in popularity, as many investors who felt the pain of the recent slump in stock investments seek more stability and security, moving forward. This follows a noticeably sharp rise in the number of Principle First clients eager to invest capital but also looking for the security that guaranteed investments provide.

"Guaranteed investments offer stability and security to those wishing to invest with no risk to capital. This is a significant attraction to those who saw the value of their other investments fall dramatically in recent years, and indeed to those who only witnessed the economic downturn, and are coming to invest money now." said Gareth Flanagan, Managing Director, Principle First.

There are a wide variety of guaranteed products on the investments market, one particular guaranteed investment available through Principle First is the MetLife Guaranteed Investment Bond. The Guaranteed Investment Bond is a single premium, unit linked insurance bond that invests in a range of portfolios managed by MetLife.

"Income bonds may suit those who wish to enjoy a monthly income from interest on a lump sum guaranteed investment." said Gareth Flanagan, managing director of Principle First.

This type of bond is not invested in the stock market, and may be the guaranteed investment of choice for those wishing to avoid stock market investments. As guaranteed investments, income bonds offer the security of knowing that the original sum is secure and will be returned, combined with the monthly or annual interest payments on the cash. (Investors can also choose to roll up annual interest, and take it at the end of the bond's term). These payments are taxable, and can be paid directly into the investor's bank account.

As is generally the case with bonds, penalty charges are likely to be payable if the bond is cashed in before the end of its term. From that point of view, income bonds are suitable only where the investor can do without the cash for the term of the bond. As Chartered Financial Planners, Principle First offers an advice service covering all aspects of guaranteed investments to clients.

Fixed rate bonds are guaranteed investments in that they offer a fixed rate of interest to investors. Cash must remain invested in the bond for an agreed number of years and interest from the bond can be paid monthly or annually, either into the bond or into a bank account. Returns on fixed rate bonds depend on the amount invested, the interest rate agreed, and the term of the investment. Generally, the longer the investor agrees to leave their money, the better the terms they will receive.

Principle First launches new online inheritance tax planner

Tue, 23 Mar 2010 10:14:03 GMT

Principle First has announced the online launch of its unique Inheritance Tax Planner facility.

Developed in close consultation with clients, the unique new online tool enables users to calculate their own personal liability for inheritance tax.

Levied at 40%, Inheritance Tax (IHT) is one of the most important taxes to HMRC (The Revenue Commissioners), and swells the taxman's coffers by billions of pounds every year. The good news though, for many inheritors, is that a good financial adviser can radically cut a person's IHT liability, in just a few simple steps.

The new Principle First online Inheritance Tax Planner alerts clients to their current Inheritance Tax liability and when used alongside Principle First's financial planning advice it could enable them to vastly reduce or completely eliminate their exposure to what has been called 'the most avoidable tax of all'.

The Principle First Inheritance Tax Calculator is an important tool as it helps with the crucial first step in avoiding this most expensive of taxes which is simply knowing how much could be owed.

IHT can apply to parts of a person's wealth when they pass funds and assets on to their children. It is a relatively simple calculation based on the total assets in their 'estate', less debts and liabilities. Despite this, many people fail to take a few minutes to work out their IHT liability, and then take advice on how to reduce it.

The current tax-free allowance, or 'nil rate band' for IHT in 2010-11 is £325,000 (£650,000 for a married couple or civil partnership). This amount however covers a wide range of assets which are included as part of an estate. Calculations need to include the value of properties, cars, valuables, savings, investments, and insurances – less the value of any outstanding mortgage, loans and other debts.

By entering these values into the inheritance Tax Planner, in response to a series of simple questions, the user can calculate the value of their estate, and deduct their allowance to show how much of their wealth will be liable to Inheritance Tax. The calculator will then show how much of that they would have to pay in Inheritance Tax at this moment.

Principle First believes the new online tool will prove to be a simple but valuable asset for its clients which could easily help them save thousands of pounds which they would otherwise lose to HMRC.

About Principle First
Principle First Chartered Financial Planners is one of the leading UK independent financial advisers and distributors of mortgages, insurances, pensions and investments. In 2008, Principle First became one of the few financial advisers to achieve the status of Chartered Financial Planners, the UK's 'gold standard' in financial advice.

Principle First to offer remote financial advice

Thu, 25 Feb 2010 10:28:17 GMT

Principle First now offers clients the ability to interact with an adviser online, as they are brought across to his screen to discuss their financial plan using a range of graphical tools, charts and graphs illustrating their proposed or current investments.

Principle First’s remote financial advice service has already been rolled out as a pilot project, and has passed the test with flying colours.

Gareth Flanagan, founder and managing director of Principle First, said: "Our clients have already given our remote advice service a very strong 'thumbs up'.

"I think people love the idea of tending to their future and current financial planning from the comfort of their own home."

A potential client can log onto the Principle First website to make an investments enquiry.

The Principle First remote advice service offers visual and graphical illustrations to complement discussions on mortgages, life insurance, tax planning and savings as well.

Gareth Flanagan added: "The real beauty of remote financial advice is its ability to cut through the resistance of many consumers to visit a financial adviser.

"It’s amazing to think that only 20% of consumers seek and accept free, no-obligation help with their financial plan and pensions. Many of those consult only banks and building societies who, due to their limited product range, place their funds in the worst-performing sectors."

Principle First has found that this resistance is based on three erroneous beliefs, which undermine a customer’s self-confidence in approaching an adviser.

Consumers often believe that financial planning is only for the wealthy, and that they simply do not have enough wealth to justify the attentions of a professional financial adviser.

Another self-intimidating belief is the nervousness the client may feel at his or her lack of financial knowledge.

The third barrier to seeking advice may be a negative experience with another adviser in the past. This is a legacy of the days when financial services was a sales-driven business, and advisers had a low level of training and qualification. The culture of the financial services industry was a sales culture, rather than the information and advice-led culture that prevails today.

As chartered financial planners, Principle First seeks to listen, consider and present the client with top-quality financial advice specifically tailored to their personal situation, and relevant to their circumstances, both in the moment, and as they change through the years. Principle First also provides a corporate financial advice service to businesses.

About Principle First:
Principle First Financial Services is one of the leading UK independent financial advisers, advising on all areas of financial planning, such as pension and retirement planning, savings and investments, family protection, mortgages, and inheritance and tax planning. In 2008, Principle First became one of the few financial adviser firms to achieve the status of Chartered Financial Planners, the UK’s ‘gold standard’ in financial advice.

Top Articles Tagged with principle-first

Principle First highlights budget plans to make Venture Capital Trusts more attractive

Principle First sees rising demand for Guaranteed Investments

Principle First launches new online inheritance tax planner

Principle First to offer remote financial advice