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Morfitt & Turnbull

Issue 28   

The numbers game

In the financial industry it's all about the 'numbers game' so as we sometimes like to have a different take on things within the newsletter I thought I would look at lucky and unlucky numbers around the world as there are a lot of superstitious folk out there and maybe you're one of them?!

So first the LUCKY numbers...
3 Sweden – famous saying where all good things come in a group of three.
4 Germany – the number of leaves in a clover leaf.
7 UK, Netherlands and France - "heavenly" number (God created the world in seven days), the week has seven days, the seven wonders of the ancient world, seven ancient planets and seven deadly sins.
8 Japan and Korea – a sign of wealth and prosperity.
9 Norway – sacred according to Norse mythology.
8 or 9 China – similar reason to Japan/Korea for number eight with nine being the number of the Emperor.
15 Spain and Latin America – a lucky number historically for gambling!
3 or 13  Italy – number three is considered the perfect number, e.g. the triangle being an indestructible shape and the holy trinity. With number thirteen this is different to many countries (see below) that regard it as unlucky. Italians (mainly in the south) consider this lucky as it is the number of the Saint of Naples, St Anthony.

Now the UNLUCKY one...

Unlucky number 13 – this is the only real one of note and is believed to originate from the biblical connotations with the last supper having had thirteen people. It has become such a superstition across the world that many hotels have the room number or floor number missing and certain streets will use number 11A on their house instead (and I have lived in such a house – although I did not choose to change the number myself!!!).

This of course doesn't mean that we close the office on 13th or choose not to make financial decisions on this date! The only numbers that we are concerned about are the ones affecting our client's financial position!!!


Adam's Technical...  The Budget
It is that time of year again when I don't have to wrack my brains thinking of something to write! The 2016 Budget was announced in March and below I have highlighted some of the announcements.
  The main one is the introduction of the Lifetime ISA. This new product is still at the consultation stage but the initial rules (subject to potential amendment) proposed are as follows:
  - It will be launched on the 6 April 2017 and available to individuals between the ages of 18 and 40 as at this date.
- The contribution limit is £4,000 per tax year. Contributions have to stop at age 50.
  - A government bonus of 25% of the amount invested each tax year will be added at the end of the tax year. So the maximum bonus in a tax year is £1,000 (25% of £4,000).
  - Monies can be withdrawn penalty free (see below) from age 60. Prior to this age they can only be withdrawn penalty free if used to purchase a first home with a purchase price of up to £450,000.
  - If monies are accessed before age 60 for any other purpose the 25% bonus will be reclaimed (plus any interest or growth on the bonus) and a 5% penalty levied on the amount withdrawn.
  The adult ISA allowance will increase from £15,240 to £20,000 in April 2017. If contributions are made to the new Lifetime ISA this will count towards the £20,000 limit.
  It is now possible to withdraw monies from an ISA and reinvest without it counting toward the ISA allowance of £15,240 for 2016/17. The monies withdrawn have to be reinvested in the same tax year. Please note that it is the ISA provider's decision on whether to allow.
  For example, you can now withdraw £10,000 then reinvest £5,000 in 2016/17 and still have an ISA allowance of £15,240. Previously, following the reinvestment of the £5,000, the remaining ISA allowance would have been £10,240.
  The income tax-free personal allowance will increase by £500 to £11,500 from April 2017. The 20% basic rate income tax band will increase from £32,000 to £33,500 from the same date.
  From 6 April 2016 the two rates of Capital Gains Tax (CGT) have reduced by 10%. The rate for non-taxpayers and basic rate taxpayers is now 10% and 20% at the higher rates (although if the gain takes you into the 40% income tax rate part will be at 20%). This reduction does not apply to residential property sales that do not qualify for private home relief. The CGT allowance for 2016/17 remains unchanged at £11,100.
  From April 2018 class 2 national insurance contributions for the self- employed will be abolished. Class 4 contributions will be reformed so that the self-employed can still accrue entitlement to the basic state pension.
  And finally the news on pensions after all the usual speculation was that “no news is good news” - for the time being. No change has been made to tax relief either on the contributions or the tax-free cash allowed when benefits are taken.

Gareth Says... 

NS&I savings rates
"We have used NS&I as a safe haven recently for cashflow purposes in the main as they provide security of capital, do not look to cross sell and their rates are competitive.
It is therefore important to mention when the rates are cut, and this is the case for their products from the start of June, with both their Direct ISA and Income Bonds reducing from 1.25% to 1.00% gross. This rate is still competitive."

Staff Matters - M&T on the fitness trail
A healthy body garners a healthy mind and some of us at M&T are advocates to that way of thinking whether it's Adam on his twice weekly runs around Knutsford, Zara ice-skating, Lisa at boot camp, Stuart in the gym preparing for his sponsored rowing event in August or Annie training for her half marathon in October!!!

Maximum brain power from those honed physiques!


No. 1 Booths Park, Chelford Road, Knutsford, WA16 8GS
Tel: 01565 624 370   Email: 

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

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