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Foresight Group invests into Five Wealth

Posted on: May 17th, 2023 by fwAdmin

We are delighted to announce that on 31st March, Foresight Group the leading listed infrastructure and regional private equity investment manager, made a £6.7m investment into Five Wealth.

The investment is fantastic news for Five Wealth and marks the start of the next stage in the growth journey of the Company. We are looking to build on what we’ve achieved over these first seven years; growing from an initial staff of 15 to where we are today with 29 staff and over £670m under management.

With Foresight’s investment we will be seeking to further develop and enhance the service we provide and will be looking to grow the business further via a combination of continued strong organic growth and targeted acquisitions.

The investment has enabled Chris Little one of the original founder directors’ to retire and exit the business and also paves the way for future retirements.

We are pleased to welcome some new faces at Board level including Jonathan Partington as Finance Director, Tim Parsons as Non-exec Chair and Matt McLoughlin as Investor Director from Foresight. High quality expertise to support us with our growth plans.

The existing management team will remain and are committed to the long-term plan, we are all very excited about the future!

If you would like further information on anything covered in this article, please get in touch via the contact page.

2023 March Budget – Key Announcements

Posted on: April 12th, 2023 by fwAdmin

2023 March Budget – Key Announcements

Jeremy Hunt announced several positive changes in his March budget, particularly in relation to pensions. In this summary, we highlight some of the key points and areas to review in the new 23/24 tax year.

Pensions

Lifetime Allowance (LTA)

The LTA charge is something that impacts those with pension funds worth more than £1,073,100. Individuals can suffer a tax charge of 55% on the excess over £1,073,100.

The chancellor said the LTA charge will be removed from April 2023 and the LTA will be abolished entirely from April 2024. This is a major change and will incentivise people to save into pension – and to work for longer.

Annual Allowance

The annual allowance for pension contributions will increase from £40,000 to £60,000 from the 23/24 tax year.

Again, this is a welcome development which will allow individuals to increase pension funding for retirement. For personal contributions, the most you can contribute (and enjoy tax relief) remains restricted to your relevant earnings in that tax year. Note that dividends and rental income do not count as relevant earnings here.

For those with higher earnings, the annual allowance is reduced/tapered. Currently, the allowance reduces where adjusted income exceeds £240,000. That threshold will increase to £260,000. (Adjusted income includes employer pension contributions, salary, interest, dividends and most other sources of income.)

The fully reduced annual allowance for higher earners has been £4,000. From 6 April 23, that allowance will increase to £10,000. High earners are still severely restricted in what they can get into a pension but this is a positive change that will help them to get a little more into this tax efficient wrapper.

Once you start drawing an income from a pension fund, your annual allowance is reduced. This is known as the money purchase annual allowance (MPAA). The MPAA will also increase from £4,000 to £10,000 from April 2023.

You can continue to carry forward unused annual allowances from the three previous tax years. The annual allowances and tapering thresholds from previous years still apply and have not changed i.e. the standard annual allowance for those years remains at £40,000. The £60,000 allowance only comes into effect from the 23/24 tax year.

Pension Commencement Lump Sum (PCLS)

Currently, most individuals who do not exceed the lifetime allowance can take up to 25% of their pension funds as a lump sum that is tax free. This is known as a Pension Commencement Lump Sum (PCLS). Where capital has come from occupational workplace schemes, some will have a protected PCLS more than 25%. For most though, the maximum has been 25% of their pension pot.

Going forward, the maximum PCLS (for those without protections) will be set at £268,275 and frozen at that level. This £268,275 figure is 25% of the current LTA of £1,073,100. At a simple level, those with pension funds under £1,073,100 will see no change – they can still take up to 25% of their pot as a PCLS. Savers with higher pension funds, may see their maximum PCLS fall below 25%.

These announcements in relation to pensions have increased the overall amount that people can put into their pension. By scrapping the lifetime allowance and increasing the annual allowance, Mr Hunt wants to encourage highly-skilled people, most notably senior NHS professionals, to remain in the labour market rather than retire early.

Savings

ISAs

There were no changes to the ISA allowance. You can still put up to £20,000 into an ISA each year. For couples, that’s £20,000 each so £40,000 combined.

You do not pay any income tax (on interest or dividends) or capital gains tax (on realised profits) so Stocks & Shares ISAs remain a great way to invest tax efficiently. There is no cap on how much you can build up in ISAs – the only restriction is the £20,000 annual limit.

Tax

Inheritance Tax (IHT)

There were no changes to IHT in the budget. With the changes on pensions though, it is worth remembering that your pension fund does not form part of your estate on death and is therefore not subject to IHT. You can pass on your pension fund to loved ones on death. In many ways, you can regard your pension pot as a family trust fund that can be passed down the generations. On death before 75, the entire fund can be passed on tax free. On death after 75, it can be passed on with no tax on death and your loved ones will simply pay tax when they take money out – any withdrawals being taxed at their own rate of income tax.

Capital Gains Tax (CGT)

There were no changes to capital gains tax rates in the budget, but the changes announced in Autumn are progressing. The annual exemption for individuals is reducing i.e. the amount of gain you can realise in a tax year without paying CGT. It will fall from £12,300 in 22/23, to £6,000 in 23/24 and then just £3,000 in 24/25. Trusts will face even lower exemptions.

Income Tax

Similarly, we will see the previously announced reductions in the dividend tax allowance take effect. The allowance will reduce from £2,000 in 22/23, to £1,000 in 23/24 and then £500 in 24/25. Those with investments held outside of ISA will be impacted by this with more and more suffering tax on dividends. The tax on dividends applies irrespective of whether dividends are paid out to you or reinvested. The rate of tax on dividends remains the same for those with dividends in excess of the allowance: 8.75% for basic rate taxpayers, 33.75% for higher rate taxpayers and 39.35% for additional rate taxpayers.

These changes on CGT and dividend allowances will increase the tax take on investments held outside of an ISA wrapper. Using the annual ISA allowance of £20,000 will become even more beneficial.

Summary

Pensions and ISAs have typically been the foundational elements for those looking to invest and build their wealth tax efficiently. This latest budget further cements their position as the go to areas for those starting to invest. The changes on pensions increase the scope for people to save into pension and take advantage of the many tax breaks that pensions offer. The changes to personal taxes have also reinforced the benefits of filling ISA allowances each year.

For those bumping into the maximum on pension and ISA, there are various other tax efficient options that can be used for capital. The likes of Venture Capital Trusts (VCT), Enterprise Investment Schemes (EIS), offshore investment bonds etc. all offer various tax advantages – although some of these options also present greater investment risks that are not suitable for most clients.

If you have any questions about the changes and how they could impact your situation or retirement plans, let us know and we will be happy to discuss.

Your capital is at risk. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

This article is for information only. Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation which is subject to change. Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor. The Financial Conduct Authority does not regulate Tax Advice.

If you would like further information on anything covered in this article, please get in touch via the contact page.

 

Five Wealth in 2022

Posted on: December 16th, 2022 by fwAdmin

As we bring 2022 to a close, we thought it would be great to reflect on the numbers which have played such a key part in our success over the last 12 months…

1 – the number of charity events hosted, taking place at The Radisson in Manchester city centre with around 250 attendees

2 – the number of team members that joined Five Wealth (Steven Prieditis and Finnley Brunel), both of whom provide support in a paraplanner capacity

2 – the number of staff members who have started the process of moving into an adviser role (Tyme Regent-Bascombe and Jordan Wheatley)

3 – the number of newborns that joined the ranks (with Ezra born to Nathan and his wife Beth, Tamio born to Tyme and his partner Toni, and Frank our sponsored support dog)

5 – the number of qualifications achieved by staff members (with Anthony Moss, Andy Denton and Sam Sharkey all gaining the Diploma in Financial Planning, Tyme Regent-Bascombe becoming a Chartered Financial Planner, and Steve Hughes becoming a Fellow of the Personal Finance Society).

6 – the anniversary we reached in August, and what a 6 years it has been!

12 – the number of clients that have either sold their business during the year, or have experienced a significant capital event

15 – the number of exams passed by our team members (including Nathan Holland, Sam Wright, Anthony Moss, Andy Denton, Tyme Regent-Bascombe and Sam Sharkey)

22 – the number of new Five Wealth branded hoodies ordered to keep our staff warm, with another order put in recently for more (could be added to a shop on our website if we get enough demand…)

27 – the number of clients this year we have assisted through a ‘retirement’ event (in some form or another!)

35 – the number of ‘Next Generation Advisers of 2022’ named by Citywire, a list on which 2 of our advisers appeared (Rick Gosling and Liz Schulz)

47 – the winning score from our ‘Axe Throwing Champion’ (Sam Wright) at this year’s Christmas party

52 – the number of new families that we have had the privilege of welcoming as clients to Five Wealth during the year

270 – the number of clients that we currently work with who are under the age of 40

450 – the number of coffee pods consumed to help clients through our in-person meetings!

And finally…

£36,210 – the total amount raised for Support Dogs, who were our chosen charity of the year and for whom we have been named as ‘Fundraisers of the Year 2022’

Hopefully you’ll agree, not a bad year by anyone’s standards!

We’d like to thank our staff for their hard work, and our clients and professional contacts for their ongoing support. Here’s hoping everyone has a great festive break, and we’ll see you in 2023!

If you would like further information on anything covered in this article, please get in touch via the contact page.

Frank’s first six months!

Posted on: August 25th, 2022 by fwAdmin

You will remember we introduced Frank in a previous post fivewealth.co.uk/news/frank-the-newest-member-of-the-five-wealth-team/

Well he’s now completed his first 6 months of training and he’s doing brilliantly! Go Frank!

Below is an update from Franks puppy trainer after his 6 months assessment and the picture is of him in his bandana and practicing his wait!

I had Frank in for his 6 month assessment yesterday and he did really well in a lot of areas. He’s such a friendly, social butterfly though this can sometimes work against him when he’s trying to focus. We had a lovely time off lead at the park and really put his recall to the test with all the dogs and children that were there (he was excellent and very responsive).

We’ll just be continuing to work on his focus and impulse control while he’s out and about, but so far he’s doing really well.

Manchester Legal Awards 2022

Posted on: May 31st, 2022 by fwAdmin

Manchester Legal Awards 2022

We are excited to be sponsoring the Private Client Team of the Year award at the Manchester Legal Awards on 9th June 2022. This promises to be another great event to recognise and celebrate the legal talent in our region and we are pleased to be able to show our support.

Good luck to all the nominees!

Frank – the newest member of the Five Wealth team

Posted on: March 31st, 2022 by fwAdmin

We would like to welcome the newest member of the (extended) Five Wealth team – Frank!

As you know our charity of the year is Support Dogs UK, this national charity is dedicated to increasing the independence and quality of life for people with various medical conditions. They provide, train and support specialist assistance dogs to achieve this. The charity specializes in autism assistance dogs, seizure alert dogs for people with epilepsy and disability assistance dogs. Support Dogs are very close to our hearts at Five Wealth – they have provided a autism support dog (Thunda) for Franklin who is the son of one of our directors, Steve Jordan.

It costs £20,000 to train a support dog and £36,000 to fund its entire career, so far through a number of events and our own donations we have raised in excess of £36,000! Support Dogs have therefore asked us to name one of their puppies in training, a fox red Labrador. We did a poll across the office and the favourite was – Frank!

We now see him as a firm part of the Five Wealth team, we hope to be able to provide updates throughout his training and are looking forward to his first visit to Manchester to see us – when he’s a little bit older.

Five Wealth vs the Yorkshire Three Peaks

Posted on: November 22nd, 2021 by fwAdmin

Five Wealth vs the Yorkshire Three Peaks

We are very pleased to announce that a group of the Five Wealth team completed the Yorkshire Three Peaks challenge last Saturday raising total of £2,206.25 (including gift aid) for Support Dogs Ltd.

The walk started in Horton in Ribblesdale, with a sunrise walk up Pen-y-Ghent followed by Whernside in the early afternoon and finally Ingleborough at sunset. Planning the walk in November, we expected the weather to be challenging, but fortunately it was on our side and we had perfect walking conditions.

In total, the team of 7 walked a total of 40.29 km with over 1,500 m of elevation gain in just over 10 hours!

Support Dogs Ltd are a fantastic charity based in Sheffield and are very close to our hearts at Five Wealth. The national charity is dedicated to increasing the independence and quality of life for people with various medical conditions. They provide, train and support specialist assistance dogs to achieve this. The charity specializes in autism assistance dogs, seizure alert dogs for people with epilepsy and disability assistance dogs.

Please visit their website to find out more about the fantastic life changing work they do at Support Dogs

Thank you to all those who have supported, liked, commented and shared our challenge, we are very grateful.

If you would still like to donate, you can do at

Tom Mitchell is fundraising for Support Dogs Ltd (justgiving.com)

Promotions at Five Wealth!

Posted on: August 5th, 2021 by fwAdmin

We are delighted to announce the promotion of Amy Grace, Liz Schulz and Rick Gosling to the position of Associate Directors of Five Wealth.

Amy and Liz have been with the company since launch in 2016 with Rick joining a year later in 2017. They are all advisers at the firm and Chartered Financial Planners and last year also became shareholders. All three play an integral role in both the running of the company supporting the Directors and looking after clients. They have been an important part of the first five years of the company and will play a key role in driving it forward for the next five and beyond.

Well done to Amy, Liz and Rick!

Five Wealth supports Greater Manchester Mayor’s Charity

Posted on: June 3rd, 2021 by fwAdmin

Five Wealth are delighted to be the first (hopefully of many) sponsors of a “tap to donate” hub provided by the Greater Manchester Mayors Charity and located in One Piccadilly.

As society becomes increasingly “cashless” this is the way for people to donate £3 via the tap of their contactless card or smartphone and All funds raised will go towards frontline charities and social enterprises who provide vital support to people experiencing or at risk of homelessness. Since April 2019, Greater Manchester Mayor’s Charity has been able to provide over £2.3million of funding for over 45 organisations across Greater Manchester

We will hopefully be able to provide updates on how much our hub is raising and as Manchester continues to open up and footfall increases hopefully so will donations!

Five Wealth & Support Dogs

Posted on: March 15th, 2021 by fwAdmin

We are delighted to announce that Support Dogs will be our chosen charity for 2021!

Support Dogs is a national charity dedicated to increasing independence and quality of life for people with various medical conditions. They provide, train and support specialist assistance dogs to achieve this.

They specialise in three specific programmes:

At Five Wealth we have seen first-hand the impact this charity can have on people’s lives. One of our Directors, Steve Jordan and his family have been provided a wonderful Autism assistance dog called Thunda (see below) who supports Steve’s son Franklin.

It takes up to two years and £23,000 to train each dog and Five Wealth want to try and raise as much as we can to help this amazing charity train more dogs to help more people and families like Steve’s.

To find out more about Support Dogs and the work they do see their website www.supportdogs.org.uk