Savings and Investments

Are you looking for investment advice? Contact Clear Finance now.

Overview of our services…

Whatever your needs, Clear Finance can help you build the right investment portfolio by looking at your goals, when you want to achieve them by and what your attitude to risk is.

We pride ourselves on long-term professional relationships we have with our clients. With goals and circumstances evolving it is vital to consult a professional financial adviser to make sure you are getting the best from your money.

We review your investment strategy and make sure it delivers your financial objectives.

Wealth Management

Wealth, just like your health, must be looked after. Your assets need to be protected against the threat of inflation, taxation and investment risk,  Clear Finance can create an individual tailored approach to your investment and risk needs, that can put you in good stead for short and long term needs.

What are the ways you can invest?

ISA’S

What is an ISA?

Any individual, who is an income tax payer and has some money to save or invest, should know about Individual Savings Accounts (ISAs). Available since April 1999, ISAs offer an attractive tax-free shelter to anyone aged 18 or over (16 or over for cash ISAs).

With standard bank and building society savings accounts, taxpayers normally have to pay tax on any interest earned on their money. The tax is deducted from the interest before it is paid out, reducing the amount received. Similarly, tax must be paid on the income and profits made from investments in the stock market like company shares or unit trusts.
However, ISAs serve as a kind of “wrapper” to protect savings from tax, allowing individuals to invest monies up to maximum limits (by way of regular or single amounts) each tax year in a range of savings and investments and pay no personal tax at all on the income and/or profits received.

If you need expert advice on investing money, call Clear Finance on 01302 835 938

The main ISA benefits

  • No personal tax (income or capital gains) on any investments in an ISA.

  • Income and gains from ISAs do not need to be included in tax returns.

  • Money can be withdrawn from an ISA at any time without losing the tax breaks.

  • Upon death, a surviving spouse/civil partner will gain an ‘additional permitted subscription’, a one off ISA allowance, equal to the value of the value of the deceased’s ISA holding.

If you need expert advice on investing money, call Clear Finance on 01302 835 938

Junior ISA

Junior ISA’s became available to any child born on or after 3rd January 2011 and any child less than 18 years of age born before September 2002; they replicate a number of features of the Adult ISA but also contain one or two special benefits.

There are two types of Junior ISA: a Cash Junior ISA and an Investment Junior ISA (Stocks and Shares Junior ISA) and each child will be able to hold one of each account, with different providers should they wish, but the total combined investment allowance between the two accounts remains at £4,368 per tax year.

Once money is deposited in a Junior ISA it will be free of Income tax and Capital Gains tax. You can transfer between the cash and the stocks and shares Junior ISAs and between providers.

Decisions on where and when to invest JISA contributions are made by the child’s parents but the account is held in the child’s name. The money is ring-fenced for the child until they are 18 – no withdrawals are permitted before then except in the event of terminal illness or death.

Once the child has reached adulthood (currently 18 years of age) they are able to withdraw the funds whenever they want without losing any tax benefits. Management of the account will pass onto the child once they reach 16 years of age. At 18 the product can be rolled directly into an adult ISA. Once parents/legal guardian open a JISA for their child, anyone, friend or family, is able to make a contribution subject to the overall annual limit.

Offshore Investments

Offshore investments are inclusive of Unit trusts, investment companies or mutual funds, The company is generally situated in a country where the investment pays little or no tax while it is invested. Once the proceeds are brought back to the UK they will be taxed at that point.

If you need expert advice on investing money, call Clear Finance on 01302 835 938

If you need expert advice on investing money, call Clear Finance on 01302 835 938

Investment bonds (onshore)

Investment bonds are life insurance policies where you invest a lump sum in a variety of available funds. When you cash investment bonds in, how much you get back depends on how well – or how badly – the investment has done. The onshore Investment Bond is taxed under UK life fund taxation rules and an appropriate level of tax is deducted from the bond. It is a single premium, whole of life, insurance product. It can be written on a single or joint life basis and either on a first death or last survivor basis.

You start your bond with a single premium and some providers will allow additional premiums at any time. These are called top-ups. You can make regular and one-off withdrawals and you can cash in your bond at any time although some product providers may apply an early surrender penalty or a market value adjustment.

An Investment Bond It is not designed for non-taxpayers, taxpayers with savings income taxed at the starting rate for savings, non-UK residents or short-term (less than 5 years) investors.

Unit Trusts

Unit trusts and  are by far the most popular investment funds. With a unit trust, a fund manager buys bonds or shares in companies on the stock market on behalf of the fund. The fund is split into units, and this is what you’ll buy. The fund manager creates units for new investors. The creation of units can be unlimited, hence why the fund is ‘open-ended.’ The price of each unit depends on the net asset value (NAV) of the fund’s underlying investments and is priced once per day. This means that the value of the units you buy directly reflects the underlying value of the investment.

If you need expert advice on investing money, call Clear Finance on 01302 835 938