Prescient... Home... Prescient... Principles... Technical Papers... Contact... External Links... Prescient is an independent financial adviser firm that offers bespoke financial planning advice: we operate from offices in Exeter, Glasgow, London and York. Our team is respected by our clients and our professional colleagues – such as stockbrokers, solicitors and accountants – for not only the quality of the service we provide, but also the strength of our recurring income and balance sheet. The company was formed by the directors, who previously worked together at Gerrard Financial Services, the sister company of the then largest private client stockbroker in the UK: both part of the Gerrard Group which was purchased by Barclays Bank plc in December 2003. Since 2004, Prescient has developed a client-focused practitioner team built on the strength of our past experience. The 9 directors have worked together for over 20 years. Close director involvement, and delivering a bespoke and personal service, have been key to building long-term relationships with both clients and professional connections. Prescient adds value by providing independent financial information, advice and execution in respect of wealth management to 2,100 private clients, and employee benefit advice to 80 companies and partnerships. New clients come to us on the strength of our reputation: referred by either an existing client or a professional connection. Our future success depends on our ability to deliver great value to our clients: that is our commitment. When choosing an independent financial adviser, financial strength is a key performance indicator. Demonstrating our commitment, the Prescient shareholding directors hold in excess of £400,000 of equity capital in the company. Our business philosophy is based on generating and maintaining long-term relationships: recurring fees underpin our sustainable business. Our team is competent, current and motivated: we have hands on experience combined with a deep understanding of client needs and requirements. The information, advice and execution services we provide are designed to help each client identify and master their key financial issues and opportunities. Our culture is based on trusted relationships, we inherently treat our clients, our team and our suppliers fairly: for example, we settle all supplier invoices within 3 working days of receipt. The business employs business undergraduates for one year as part of their 4-year degree course: our intention is to support these young people with a real experience of the job market: two are currently working with us. Many of these placement students have subsequently secured rewarding and responsible roles in the financial market after graduation. Prescient strives to contribute fully to society by being efficient, profitable and socially responsible. Prescient continually produces technical papers to maintain competence and currency. A selection of these papers are available, on request, to professional connections and relevant clients in the form of a monthly Prescient Bulletin. This section contains links to a sample of papers. Swiss accounts + Liechtenstein Disclosure Facility Many with Swiss accounts with undisclosed income may consider the Liechtenstein Disclosure Facility. 18/2/2015 State pensions and married women The position of married women in the light of the changes in April 2016 to the new single-tier State Pension. 10/2/2015 ISA transfer to surviving spouse The government has published draft regulations to implement the ability to transfer ISA benefits to a surviving spouse/civil partner. 20/1/2015 Online wills HM Courts & Tribunals Service has launched a searchable online database that will allow the public to obtain copies of wills without having to visit the probate registry. 9/1/2015 Agricultural property relief An overview of the rules applicable to individuals: what qualifies for relief, how it applies to lifetime transfers and the position on death. 30/12/2014 Principal private residence relief evidence Another case highlighting the importance of retaining documentary evidence when purporting to make a claim for principal private residence relief. 29/12/2014 Scotland: Proposed tax changes Details of the powers over tax and benefits that could be devolved by the UK government to the Scottish government have been released. 28/11/2014 Taxation of residential property A summary of the main changes that are taking place as regards the taxation of residential property. 25/11/2014 National Insurance Fund to go bust? The Centre for Policy Studies (CPS) has published a paper examining the finances of the National Insurance Fund. The CPS says that the fund will run out of money imminently and that the situation offers an opportunity both to scrap NICs and to revisit the idea of a single combined earnings tax, covering income tax and NICs. 16/10/2014 Principal private residence relief Budget 2014 confirmed that the final period of relief will be reduced from 36 months to 18 months in most cases. However, there are some exceptions to this rule as we explain. 15/10/2014 Abolition of 55% pension tax charge Chancellor has announced that the 55% tax charge on lump sum pension death benefits on crystallised funds or death after age 75 will be abolished from April 2015. 29/9/2014 Spanish inheritance tax and gift tax On 3 September 2014 the European Court of Justice ruled that the Spanish legislation that charges higher inheritance tax and gift tax rates to foreigners than it charges Spanish residents is discriminatory. 12/9/2014 Transgender State pension age In a recent ruling, the Court of Appeal has rejected a transgender person’s claim that they should be entitled to their State pension from the age appropriate to a female. 5/8/2014 Premium bond return increases The rate of underlying ‘interest’ on the premium bond prize fund is rising to 1.35% when the number of £1m monthly prizes increases to two. 4/8/2014 NS&I to refuse Scottish savers National Savings & Investments has said that unless Scottish savers have a bank account south of the border they will not be able to invest in its products although existing holdings could be retained 15/7/2014 Group life and fixed protection Individuals who have an election for Enhanced Protection and both forms of Fixed Protection need to be aware that the protection may be lost if they join their employer’s Group Life Scheme. 9/7/2014 NISA today The 2014 Budget announced the introduction of a new simplified product, the NISA, and as of today all existing ISAs will become NISAs. What are the rules in relation to savings already made and the ability to transfer funds? 1/7/2014 Negative interest rates in the EU European banks will now have to pay to deposit money with the European Central Bank following its latest moves to stimulate the Eurozone economy. 6/6/2014 Premium bond investment limit rises The maximum investment in premiums bonds is increasing to £40,000 on 1 June and the number of £1m prizes will double in August. 28/5/2014 HMRC toolkits HMRC has published five updated toolkits to help practitioners avoid common mistakes in preparing returns. 6/5/2014 Lib Dem mansion tax The Liberal Democrats have revealed plans to revamp mansion tax for the wealthy. 11/4/2014 Increase to JISA limits The increase to the JISA investment limit to £4,000 from 1st July offers an opportunity to re-visit tax efficient investment for higher education and first property purchase. But is a JISA the best option? 7/4/2014 Employment allowance The new employer’s NIC allowance could change employing the spouse decisions. 4/4/2014 After the Budget: Pension or ISA? The big changes to pensions and ISAs in the Budget means that individuals may need to reconsider wrapper choice. 31/3/2014 ISA becomes NISA From 1 July 2014 a new, simpler product, the 'New ISA' (NISA), will be available with an overall annual subscription limit of £15,000 and greater investment flexibility. 21/3/2014 Persuasion is not undue influence An overview of two recent decisions that illustrate the Courts’ tests for claims that a testator lacked knowledge of, or did not approve, the contents of a will. 26/2/2014 High income parents child benefit charge Many parents opted out of receiving Child Benefit – but what about those who did not, and what consequences might they face? 11/2/2014 A question of capacity In the case of Vegetarian Society & Another v Scott 2013, the defendant lost her case despite arguing that her brother lacked testamentary capacity as he suffered from schizophrenia. 16/1/2014 Gifts out of surplus income The normal expenditure out of income exemption is relatively well known but often overlooked. This paper provides a reminder of the conditions for this valuable relief, and highlights some practical eligibility issues. 14/1/2014 Scottish income tax: Pension contributions HMRC agree to increase deadline to implement changes to the relief at source (RAS) process for pension contributions. 7/1/2014 Fixed Protection 2014 deadline 5 April 2014 The standard lifetime allowance is reducing from £1.5 million to £1.25 million with effect from 6 April 2014. Relevant individuals need to take urgent action. 17/12/2013 IHT and services for furnished holiday lettings Whilst the overall tax benefits of furnished holiday lettings (especially loss relief) have been restricted in recent years, the holders of such property still benefit from several tax reliefs. The availability of IHT business property relief was considered in a recent case. 3/12/2013 Retaining the personal allowance Which investments can be used to reduce an individual’s income for the purposes of the £100,000 personal allowance test? 28/11/2013 Higher rate relief on pension contributions A recent survey has uncovered that many higher rate taxpayers do not claim their higher rate relief on pension contributions 12/11/2013 ISA limits under attack Reduction in amounts eligible for favourable tax treatment under the registered pension regime: Newspaper report of possible imposition of a maximum ISA fund value. 28/10/2013 Personal Allowance increase? The Conservatives have made it clear that an increase of the personal allowance to £12,500 is a firm aspiration. So what are the financial planning ideas? 24/10/2013 Returns from Premium Bonds Given the rates that most savings accounts currently offer, could investing in Premium Bonds be an option? 17/9/2013 The Dow Jones Index The Dow Jones Index is undergoing a big change. 13/9/2013 Cost of raising a child Research indicates that the cost of bringing up a child has risen to £148,000. 22/8/2013 Fixed protection 2014 HMRC has issued a number of further documents regarding fixed protection 2014, including a link to the online application and member guidance. 21/8/2013 Flat rate pension tax relief The Pension Policy Institute has published a paper calling for flat rate tax relief on contributions. 17/7/2013 Online lasting power of attorney The Office of the Public Guardian (OPG) has launched its online service for making lasting power of attorney (LPA) applications in England and Wales. 9/7/2013 NS&I revised rates NS&I are cutting rates on three variable rate products. 13/6/2013 FCA statement on UCIS The FCA has published a final statement on the promotion of UCIS and similar products. 7/6/2013 A bad month for bonds May was a bad month for bonds because of QExit fear. 5/6/2013 Government not to regulate will writing The Lord Chancellor decides not to regulate will writing, despite the recommendation of the Legal Services Board and the Law Society. 24/5/2013 Interest only residential mortgages The FCA has published results of reviews into interest only mortgages and new guidance. 7/5/2013 Revised rules for NS&I income bonds The two tier rate for income bonds has been scrapped, as part of a programme to simplify and modernise the NS&I savings range. 11/4/2013 Inheritance and Trustees' Powers Bill The government has issued a draft Bill, based on recommendations published by the Law Commission in December 2011. The new proposals will go some way to reflecting the needs and expectations of modern families. 3/4/2013 Labour plans for tax Labour is considering transforming the tax treatment of shares in a bid to encourage long-term investing. 20/3/2013 Refund of excess contributions HMRC is indicating that any refund of excess contributions will no longer be regarded as pension input for annual allowance testing purposes. 5/3/2013 Gifts from joint bank accounts How are gifts from joint bank accounts treated for inheritance tax purposes? 28/2/2013 Reform of long term care funding The government's proposals for the reform of long-term care funding have been met with a mixed response. 15/2/2013 NS&I make changes NS&I make changes to their products and access, to reduce operational costs. 24/1/2013 Bereavement benefits The draft Pensions Bill 2013 contains changes to bereavement benefits. 23/1/2013 Labour to reduce pension contribution relief Ed Balls, the Shadow Chancellor, has indicated that Labour would reduce the tax relief on pension contributions made by additional rate taxpayers to 20%. 8/1/2013 IHT and foreign domiciled spouse: new rules An outline and analysis of the proposed changes. 14/12/2012 Drawdown and the GAD rate The return to 120% of the GAD rate for pension drawdown will still leave shortfalls. 11/12/2012 Solicitor referrals to financial advisers There is a difference of opinion between the Solicitor's Regulatory Authority and the Law Society over referrals to financial advisers who, from new year, will be independent or restricted. 30/11/2012 Child Benefit charge HMRC is sending about 1m letters out in November to families that may be subject to the tax charge on Child Benefit, which takes effect from 7 January 2013. 8/11/2012 UK economy grows Office for National Statistics estimates GDP growth in the third quarter. 25/10/2012 Increase in EIS investment Investment in EIS coincides with a fall in VCT investment. 16/10/2012 Unisex drawdown HMRC introduce unisex drawdown rates in response to unisex annuity rates. 4/9/2012 Income tax and jointly owned property In August 2012, HMRC published updated guidance on joint ownership and income tax. As a result of this, Form 17 can now be issued with bank and building society accounts as well as with other forms of property. 3/8/2012 Annuity rates v drawdown A gap between drawdown rates and annuities is emerging. 2/8/2012 CGT planning for couples Basic CGT planning points for married couples and civil partners. 19/7/2012 Statutory residency test HMRC are keen to introduce changes to the tax rules on residence: in particular, to introduce a statutory residence test. A consultation process took place last year. HMRC have now responded to the issues raised during consultation. 28/6/2012 Scotland could amend Stamp Duty Land Tax The Scottish Finance Secretary has proposed Stamp Duty Land Tax (SDLT) reform for Scotland. 13/6/2012 New tax calculator app The government has launched a new tax calculator enabling people to work out how much tax they pay, and how the government spends it. 31/5/2012 All time low for pension drawdown The drawdown interest rate for June 2012 has reached a new low. 23/5/2012 Property trusts and residential care fees The planning options that seek to protect the main residence from residential care fees. 22/4/2012 UNscheduled and retrospective tax changes The government has made promises on how it will limit unscheduled and retrospective tax changes. 12/4/2012 High Court judgement changes the pension and bankruptcy position The High Court ruling in the case of Raithatha v. Williamson is likely to significantly change the circumstances where a trustee in bankruptcy can make a claim against a bankrupt individual’s ‘approved’ pension benefits. 12/4/2012 EU law on cross border inheritance Of the four and a half million people who die each year in the EU, about ten per cent leave estates in more than one country. Britain and Ireland opt out of the new EU law. 19/3/2012 Base rate birthday 5 March marked the third anniversary of the Bank of England setting base rate at 0.5%. 5/3/2012 Cash ISAs and bait-pricing Individuals investing in cash ISAs need to be aware of ISA providers that benefit from investor apathy at the expense of investors. 22/2/2012 Schemes designed to avoid the costs of care Some advisers are exploiting client fears and uncertainties over paying for care. 26/1/2012 Government to allow commutation of small pension funds The government has set out the circumstances where individuals aged 60 or over with small pension pots of £2,000 or less will be able to draw these as a lump sum. 7/12/2011 Gradual retirement What are the perceived barriers? 23/11/2011 Valid execution of wills and deeds Recent cases with surprising results. 17/11/2011 Swiss tax agreement A one time deduction, authorised to settle past tax liabilities, to supplement the new withholding tax applicable to the Swiss bank accounts of UK residents that have not been previously disclosed to HMRC. 18/10/2011 Deferral of state pension To consider whether it is attractive for an individual to defer the taking of the basic state pension. 2/9/2011 Life expectancy The Department of Work and Pensions announce that 17% of the current population would reach 100. 9/8/2011 Public pension liabilities hit £1.3 trillion The Office for Budget Responsibility’s (OBR) first Fiscal Sustainability Report is frank about the net present value of future public sector pension liablilities. 13/7/2011 Should pension ages be scrapped? Oxford University professor of gerontology Sarah Harper believes the pensions age should be abolished. 20/6/2011 NS&I index-linked certificates Worth considering...could be a limited edition. 16/5/2011 Overturning will provisions The interesting Ilott v Mitson case. 27/4/2011 Customers complain The FSA has published details of complaints: not surprisingly, banks take the top 15 spots in the league table. 30/3/2011 Cash ISAs: poor value for the majority of investors. £127bn is estimated to be held in cash ISAs: much of this cash is earning derisory rates of interest: providers benefit from bait-pricing. 9/3/2011 Equitable Life terms finalised The government has confirmed its intention to make compensation to eligible Equitable Life policyholders. 2/2/2011 Scams February is scams awareness month: not a lot of people, who should, know that. 1/2/2011 Credit card claims Credit card companies regularly give customers false or misleading information when they call to make a credit card claim enquiry. 26/1/2011 Financial Services Compensation Scheme The FSA has confirmed an increase in compensation cover for deposits, to £85,000. 22/12/2010 The Governor of the Bank of England writes to the Chancellor Another letter from the Governor defending above target inflation. 15/11/2010 Rectification of a deed of variation What are the remedies if a deed is executed with the intention that it should have certain consequences but the actual consequences of the deed as executed are completely different? 12/11/2010 State pension age to be equalised The government has set out the new phasing-in details for bringing forward the date on which the State Pension Age will be equalised at 65. 5/11/2010 Pre-nuptial agreements A landmark majority decision by the Supreme Court. 29/10/2010 Equitable Life The coalition government announces their compensation plan for the Equitable Life policyholders. 26/10/2010 Cheaper coins New coins are to enter circulation from April 2011: that will save money for the Royal Mint and encourage the development of "contactless payment". 22/10/2010 Furnished holiday lettings 25% of the 65,000 people owning furnished holiday lettings are set to lose valuable tax relief from 6 April 2011. 30/9/2010 HMRC demands for underpaid tax What to do when you receive an unexpected demand for allegedly underpaid tax. 17/9/2010 Index-linked investments Index-linked gilts are not a simple replacement for index-linked savings certificates. 6/8/2010 Bare trust returns HMRC claim that most tax returns for bare trusts are completed incorrectly. 3/8/2010 To incorporate or not? The June 2010 Budget changes to income tax, NICs, the small profits corporation tax rate and capital allowances mean the tax efficiency of incorporation has increased. 7/7/2010 Unit trust pricing One major investment group has changed the basis of its unit pricing. 10/6/2010 Investment yields Relative investment yields suggest UK shares are cheap. 28/5/2010 VAT to rise Value added tax looks set to rise, whatever the shape of the next government. 28/4/2010 Party policies A brief summary of the financial planning points from the three main party manifestos. 24/4/2010 Monopoly on will writing for solicitors proposed A report to the Legal Services Board proposes a solicitors monopoly on will writing. 11/12/2009 Proposals for reform of succession law in Scotland The Scottish Law Commission’s proposals for changes in succession law, including the rules of intestate succession and legal rights, are welcomed by the Scottish Government. 25/11/2009 Proposals to reform the law of intestacy and family provision claims on death in England and Wales On 29 October 2009 the Law Commission published a Consultation Paper setting out proposals to amend the law. The key proposals concern an increase in the statutory legacy for a surviving spouse and automatic entitlement for co-habitants in certain circumstances. 5/11/2009 European certificate of inheritance The European Commission adopts a regulation to define pan-European law on cross-border succession and wills. 14/10/2009 Exeter Office [ map ] 17 Barnfield Road Exeter EX1 1RR T 01392 214 740 Glasgow Office [ map ] 69 Buchanan Street Glasgow G1 3HL T 0141 314 3984 London Office [ map ] 46 Chancery Lane London WC2A 1JE T 020 7025 4697 York Office [ map ] 23 High Petergate York YO1 7HS T 01904 676 636 Exeter Glasgow London York Prescient adds links to this site as feedback develops from users. Prescient is not responsible for the content of external internet sites. The Financial Conduct Authority (FCA) Consumer information. HMRC on pension schemes Understanding the tax rules on pension schemes and their management, including tax reliefs and charges. Automatic enrolment Guidance from The Pensions Regulator. International Longevity Centre - UK A think-tank with a focus on longevity, ageing and population change. The Money Advice Service An initiative, launched in April 2011, seeking "To enhance people's lives because they take control of their money as a matter of course". A good source of generic information and guidance. HMRC Tax rates and allowances. Office for National Statistics This government office produces information to improve our understanding of the UK economy and society: the link is to research on the quality of life and social participation of those over age 50. The Pensions Regulator The Pensions Regulator is the UK regulator of work-based pension schemes. Good governance underpins secure pensions and enables the effective management of risk: this link connects you to a series of papers on scheme administration for trustees. Directgov The government website that can help you find out how much your State pension will provide. Which? The best fixed rate savings accounts, sourced from a review of the whole market. If investing in retail deposits, remember the benefit of the £85,000 maximum limit for FSCS protection. NS&I National Savings and Investments (NS&I) is an Executive Agency of the Chancellor of the Exchequer. The proposition is that all their products offer 100% security because of the backing by HM Treasury. There are no competitive products currently available because of the government policy to maintain a net financing target: that means new issues have to balance redemptions. Government Actuary's Department The actuarial consultancy for the public sector. State Pension fact sheets These fact sheets help explain the current and new State Pension schemes.