Mountstone Partners create and manage bespoke investment portfolios for wealthy families, charities and trusts. CEO James Keen publishes a monthly investment update for their clients.
Here is March’s Newsletter in which he summarises the key points from Thursday’s budget that he thinks will directly affect you as an investor, ranging from changes in pension legislation to ISAs to savings. Please contact him if you have any enquiries:-
- The UK economy – UK grew 2.6% in 2014, faster than any other developed economy but below the predicted 3% in December
- Borrowing set to fall from £90.2bn in 2014-15 to £75.3bn in 2015-16
- Pensions – Lifetime Allowance on personal pensions to be cut from £1.25m to £1m from April 2016
- Personal Allowance – rises from £10,000 currently to £10,600 in 2015-16, £10,800 in 2015-17 and £11,000 in 2017-18
- 40% tax bracket to rise to £42,385 in 2015-16, £42,700 in 2016-17 and £43,300 in 2017-18
- Annual tax returns to be abolished and will be replaced by digital submissions (roll-out in early 2016)
ISAs
o Cash/stock ISA contribution limit increased to £15,240 per year for 2015-16
o Withdrawals can be made from your cash/stock ISA in any one tax year and then re-paid into the ISA with no loss of your allowance (must be repaid within the same tax-year)
o Help to Buy ISAs for First Time Buyers – Government will contribute £50 for every £200 per month saved by the individual
o Individual can invest an optional initial deposit of £1,000 on account opening and then max of £200 per month. Government will contribute max of £3,000 per individual
o Bonus only paid on purchase of a home
§ Purchase max value £450k in London and £250k outside London
§ Crucially Individuals cannot subscribe to an additional cash/stocks and shares ISA if this bonus is used
§ Commences autumn 2015, must open an account in first four years but no time-limit on property purchase
- Junior ISA (JISA) – annual subscription rises from £4,000 to £4,080 from 6th April 2015
- Personal Savings – the first £1,000 of an individual’s savings income is interest free for basic-rate taxpayers. £500 applies for higher rate. Introduced Apr 2016
James Keen – Director
James is co-founder of Mountstone Partners and is responsible for managing client portfolios, chair of the asset allocation committee and has oversight of the portfolio construction process.
Prior to founding Mountstone, James was an Investment Director at Brooks Macdonald, a firm that manages £4.5 billion of private client portfolios. At Brooks Macdonald James was one of 3 Investment Committee members responsible for the entire investment process. He was an Asset Allocation Committee member, head of 5 London investment teams and was responsible for client relationships representing £239 million of client portfolios.
James has been recognised as one of the “Top 40 Under 40” advisers in wealth management in the UK (as awarded by PAM) for the last 2 years running
Mountstone Partners Ltd
7-8 Henrietta Street
Covent Garden
London
WC2E 8PS
Mountstone Partners Ltd is registered in England. Registered number 08076218. Authorised and regulated by the Financial Conduct Authority
