MoneyTalk January 2006

by Arch Financial Planning Limited

HAPPY NEW YEAR!

We appreciate that we are, as yet, unlikely to have any clients who have registered as civil partners under the new legislation which came into force last month. However, this is important legislation as it affects virtually every aspect of financial planning. We know that the issue of 'gay marriages' can cause strong feelings both for and against. Nevertheless, we hope that you will appreciate our need as independent financial advisers to be knowledgeable on all issues that may affect financial planning, even if for a small minority of clients. Furthermore, we believe that it will do no harm for all of our clients to be generally aware of the changes to the law in this respect.

The Civil Partnership Act 2004

This Act allows a same sex couple to gain legal recognition for their relationship by creating a civil partnership. Civil partnerships are therefore now a feature of financial planning within the UK. The first registrations of civil partners took place between 19th and 21st December 2005 depending on which part of the UK the couple lived. The most famous of the first civil partnership registrations was between Sir Elton John and David Furnish.

The government estimates that between 11,000 and 22,000 people will be in a civil partnership by 2010. A registered civil partnership is designed to be very much equivalent to a marriage for same sex couples. It carries both rights and responsibilities. In broad terms, registered civil partnerships will be treated for legal and tax purposes as a traditional marriage. The Finance Act 2005 enables the necessary taxation legislation changes to be made.

The civil partnership legislation affects inheritance tax, capital gains tax, income tax and the law of intestacy. Civil partners have been given rights, similar to those for a married couple, to assume parental responsibility, legal guardianship, adoption etc.

Civil partners have been given the same rights as married couples in respect of social security, child support and tax credits. State pension schemes have been updated so that civil partners are treated in the same way as married spouses. The Act also empowers the government to amend enactments relating to pensions legislation.

For an overview of some of the practical aspects of civil partnerships and further information on some of the areas of financial planning that are affected, follow the link to our website www.arch-fp.co.uk/civil_partnerships.htm

ISA/PEPs Can Now Be Invested in Property

Following a change to the rules governing the eligibility of 'Non UCITS Retail Schemes (NURS)' on 27 December 2005 ISAs and PEPs can now invest in commercial property.

Both M&G and Scottish Widows Investment Partnership (SWIP) have announced that their PEPs and ISAs are now open for commercial property investment. In M&G's case the fund is the M&G Property Portfolio which was launched on 8 November 2005 and is managed by Prudential Property Investment Managers. The SWIP Property Trust was launched on 15 November 2004.

If you would like to discuss whether you could benefit from an investment in commercial property please contact your usual Arch adviser, or email direct@arch-fp.co.uk, or telephone Sarah Bond on 01483 204600. For background information on investing in commercial property follow the link to our website www.arch-fp.co.uk/property_funds.htm

  

Chartered Status for Financial Planners

In August 2005, the Chartered Insurance Institute received confirmation from the Privy Council that it had been granted permission to award the new title Chartered Financial Planner.

Chartered status is regarded as the highest and most prestigious level of professional achievement for people working within the insurance industry.

We are pleased to report that our MD, Arthur Childs, was one of the very first people to be awarded the Chartered Financial Planner title on 12 December 2005.

Equities tipped to outperform bonds in 2006

The general concensus of the fund manager reports that we have seen for the year ahead is that equities (ie stocks and shares) will once again outperform bonds (ie fixed interest investments) and cash (ie deposit accounts).

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Arch Financial Planning Limited

Arch House, Collins Court, 39 High Street, Cranleigh, Surrey GU6 8AS
Tel: 01483 204600, Fax: 01483 204611

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