Morfitt's Mailshot Issue 20...          Can't see this email properly? View in browser

Morfitt & Turnbull

Issue 20   

The Santa Rally - another present for Christmas!
This is not the famous St Nick jumping into a souped-up all terrain car and racing around the British wilderness, it is the historical late surge in investment markets at this time of year.

Research shows that the markets are traditionally four times more profitable in December and although there is no precise logic to this, many analysts surmise that it is a combination of the chase for year-end returns from fund managers, Christmas spending and the festive spirit spilling into people's mindset that makes them more willing to do a bit of investing before the end of the year.
  Stuart gets ready to discuss investments with clients 
         The FTSE100 itself has closed higher every December for the last 11 years, and when taking the data back even further, has only closed the month lower twice in two decades. On an average basis, the FTSE100 rallies 2.1% every December, and this figure is even higher at 2.6% when you take out those two losing years (2002 and 1994 - and it could be that 2014 is the third loser!).

And remember, investing isn't just for Christmas, it's for life!


NS&I Fixed Rate Bonds (over 65s only) - at a glance
We have the latest update on the bonds that will be available for investment from NS&I, here are the main details:
  • Available for the over 65s - can be held in single or joint names.
  • Lump sums investments - minimum £500 or maximum of £10,000 per person per issue.
  • 1 year bond 2.80% gross interest.
  • 3 year bond 4.00% gross interest p.a.
  • Interest is taxable and paid net of basic rate Income Tax.
  • On sale from January 2015 (exact date to be confirmed).
If you wish to discuss this please contact your usual Adviser and M&T will also be happy to process for a £25 administration fee.

Adam's Technical...   The Autumn Statement
Here is Adam's take on George Osborne's last announcement before the next General Election...
I have detailed below a few points to come out of the Autumn statement presented to the House of Commons on 3 December 2014.
  The first surprise was the change to the stamp duty rates, where previously the whole value of the house purchase price applied to the appropriate stamp duty rate, from 4 December 2014 it works like Income Tax - you only pay the percentage applying to each slice, as follows:
    - 0% charged on the portion of the purchase price up to £125,000
    - 2% for the portion between £125,001 and £250,000
    - 5% for the portion between £250,001 and £925,000
    - 10% for the portion between £925,001 and £1.5m
    - 12% for any amount over £1.5m
    For example, stamp duty on a purchase price of £300,000 is now £5,000. Under the previous rules it was £9,000.
  The other surprise announcement was that on death a spouse/civil partner will now inherit an ISA allowance equivalent to the value of their partner's ISA holdings. Previously the ISA tax benefits ceased on death.
    For the 2015/16 tax year:
  The ISA allowance will be £15,240, an increase of £240. The Junior ISA and Child Trust Fund allowance increases to £4,080.
  The Basic State Pension for a single pensioner will be £115.95 per week - an increase of £2.85 (2.5%).
  The Income Tax free personal allowance will increase from £10,000 to £10,600.
  The 20% income tax band will be reduced from £31,865 to £31,785.
  Savings income up to £5,000 has a new 0% rate but this is reduced by an individual’s taxable non-savings income (such as earnings or pension) and so has no benefit if you earn over £15,600 in the tax year.
  Individuals may transfer £1,060 of their personal allowance to a spouse or civil partner provided the recipient is not a 40% or 45% taxpayer.
  The Capital Gains Tax annual exempt amount increases by £100 to £11,100.
  A further pension change relating to annuities was announced. If the annuitant dies before age 75 any spouse's pension and/or guaranteed period will now be paid free of income tax. This new rule applies where no payments have been made to a beneficiary prior to 6 April 2015.
  Finally, one that I wasn't aware of. If a soldier dies or later dies as a result of an injury sustained in the line of duty their entire estate is paid free of Inheritance Tax. This exemption has now been extended to cover the fire brigade, ambulance crew, police crew, coast guards and humanitarian aid workers. This change applies to deaths from 19 March 2014.

Gareth Says... 
FTSE comment and 2015 outlook

Here's Gareth's latest..
"Has it been a good year for investing? Well at the time of writing, 9 December 2014, the FTSE is down 2.5% on the year. Most of our clients have made a healthy profit this year - why?
The pound has been weak and this has helped performance. International markets have tended to fare better than the UK and as most have some exposure, this has helped.

Commercial property has had a good year and we have some very good fund managers upon our 'gold list'.
So what does 2015 hold?

• A continuing weak pound as other world economies catch up with the UK?
• A strong commercial property sector?
• The reawakening of the gold price?
• Volatility in world markets!

Sleep easy – diversification is the name of the game and our clients' portfolios tend to be."
Gareth ALSO Says...  Remember this name - CHARLOTTE WILD!!!

Morfitt & Turnbull have agreed to partly sponsor a young professional golfer for next year - Charlotte Wild.

Charlotte plays on the LET Access (European Ladies Tour) which is the Tour below the main Tour.

She finished 14th on the LET Access Order of Merit 2014, as top English woman. She had a distinguished amateur career including winning the Ladies English Amateur Strokeplay Championship in 2009.

She turned professional in September 2012 and has made steady progress. As we write, she is trying to earn her card on the main Tour via Qualifying School in Morocco. You can follow her progress at

It's a tough life trying to earn your living from golf, the costs are substantial and the rewards are difficult to come by. If anyone would like to contribute to help Charlotte however small, I will happily put you in touch.

Charlotte pictured with her golf bag,
emblazoned with the M&T logo!


Staff Matters - closing times

After that bumper edition of Morfitt's Mailshot we have to end extending our best wishes to one and all over the festive period. The M&T office will be closed as follows:

Office closes 12.30 p.m. Friday 19th December 2014
Reopens 8.30 a.m. Friday 2nd January 2015

See you in 2015!!!



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Tel: 01565 624 370   Email: 

Morfitt and Turnbull (Management Services) Limited 
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Registered Number 740613 England

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