Business
Many homeowners in Wales ‘failing to protect their family’s financial futures’
ALMOST a third of homeowners in Wales are failing to protect their family’s financial futures
25.01.2024 – Almost a third (32%) of adults in Wales have not made financial arrangements to protect their families when they die, new research has revealed.
A survey, by Lycetts Financial Services (LFS), also revealed that 32% do not understand how Inheritance Tax could affect their loved ones.
“Most people focus on earning enough to buy a home and accumulate other assets during their lifetime,” said Nick Straker, LFS Divisional Director. “They regard this as more important than considering the potential tax consequences further down the line.
“However, the start of a new year is the ideal time to take stock of your financial assets and circumstances, and plan for the future. It could be the most important resolution you ever make.”
Currently, the first £325,000 of an estate is not subject to Inheritance Tax under the “Nil Rate Band” (NRB). Where the family home is also passed to a direct descendant then the NRB is boosted by a further £175,000 to £500,000.
If a couple are married and pass assets each to other, then the NRB can be inherited so that it can be up to £1million on the last to die. However, the rise in property values in recent years has still seen more people’s assets exceed the threshold and be subject to a 40% tax rate.
Straker said: “A Potentially Exempt Transfer (PET) allows you to make financial gifts of unlimited value without there being an Inheritance Tax liability. The only proviso is that the individual making the gift must survive for the following seven years, and that the gift itself is potentially subject to Capital Gains Tax (CGT) on transfer.
“Before committing to PETs, consideration should be given to what your future financial needs may be. With life expectancy increasing, you need to consider how much income you will require to continue living the life you want to lead.
“The problem of giving assets away is that you don’t know how long you are going to live and there may also come a time when you need to pay for care and nursing home costs.
“The wisdom of making a PET when your children may be young, impulsive and have not yet established themselves, is another important consideration. Generally, people are getting married later and having children later, so planning becomes more difficult.
“Life Insurance, however, is a good short term measure. It provides protection for loved ones if something were to happen unexpectedly, and is relatively inexpensive. When your children are likely to be settled and more mature, and you have a better idea of your financial needs going forward, a PET might then be explored or other IHT plans can be considered.”
Straker also reinforced the importance of building up a pension fund, which can offer further financial support for a spouse and family.
“Pensions are highly tax efficient and are not affected by Inheritance Tax. You are never too young to start saving for your pension and should aim to build as big a fund as possible.
“My final piece of advice is to seek guidance from an experienced financial adviser. An audit of all assets is a good starting point to plan for the future.
“A YouGov survey revealed that that only 31 per cent of those who made resolutions in 2023 kept them all, but arranging your finances is one you should definitely stick to.”
Business
Maenclochog care home turned down after community concerns
A CARE HOME scheme for a Pembrokeshire village, which saw objections from the local community council after youngsters had ‘absconded’ from similar sites locally, will need a formal application, planners have said.
In an application to Pembrokeshire County Council, Future Nest Care Ltd, through agent Evans Banks Planning Limited, sought a certificate of lawfulness to allow the use of dwelling house Brynawel, Maenclochog as a care home for two youngsters between the ages of five and 16 with specific needs.
A supporting statement said the youngsters would be supported by three qualified and experienced staff members during the day and two at night; the certificate of lawfulness application made to establish that formal planning permission is not required to use an existing two-storey detached dwellinghouse into a residential care facility to accommodate two children, supervised 24/7 by staff.
It added: “The proposed use is designed to provide a safe, nurturing, and family-style environment to help the young residents develop essential life skills and prepare for independent living. The residing youngsters will attend local schools or colleges and participate in community life, in the same manner as any young person living in a traditional family home.
“The qualified and experienced staff will prepare those children for their re-introduction back into a life without supervised care. The residing youngsters would attend the local school or further education college, as would any youngster under 18 living in a family home.”
However, Maenclochog Community Council objected to the proposals after residents expressed their concerns.
In its objection, it said: “This proposal has raised significant concern within the village, particularly as there are already multiple provisions for similar accommodation on the outskirts of Maenclochog.
“In the past, young people accommodated at these facilities have frequently absconded, leading to repeated searches across the surrounding area. This history heightens local anxiety regarding the introduction of further such provision within the village.”
It added: “Neighbouring residents have not been consulted regarding the proposed change of use, which has led to unease and a lack of confidence in the applicants’ intentions and in the suitability of the site for this form of development.”
It went on to say: “Before any decision is made, Maenclochog Community Council strongly believes that local residents should be afforded the opportunity of a public consultation. While the proposal may represent an economic decision for the property owners, it has wider implications for the village and its residents.”
An officer report recommended refusal of the certificate of lawfulness, concluding that “a material change of use would occur in relation to the proposed use of the site and as a result a certificate of proposed lawful use cannot be granted”.
In refusing the lawfulness call, planners said “the frequency of staff changes and the number of vehicle movements associated with the proposed use of the property would be materially different to those associated with its lawful use as a dwelling,” the material change of use to a care home requiring a formal planning application.
Business
Plaid energy policy challenged by Labour after Adam Price interview
LABOUR SAYS MINISTERS MUST EXPLAIN COST AND TIMETABLE FOR PYLON PLANS
PLAID CYMRU’S approach to energy infrastructure has come under scrutiny after Energy Minister Adam Price was challenged over plans to reduce the use of overhead pylons in Wales.
Mr Price defended the Welsh Government’s position during an appearance on BBC Radio Wales’ Sunday Supplement, arguing that communities must have greater confidence in how major grid projects are handled.
Plaid Cymru has pledged to give communities a stronger voice over energy developments and to look more closely at alternatives to overhead transmission lines, including underground cabling where possible.
The issue has become increasingly sensitive in rural parts of Wales, where proposed pylon routes linked to renewable energy schemes have raised concerns about landscape impact, tourism and local consultation.
However, Welsh Labour said the minister had failed to explain when any restriction on pylons would take effect, or who would pay the additional cost of placing cables underground.
A Welsh Labour spokesperson said: “Adam Price keeps saying how clear their manifesto was and yet he won’t say when they’re banning pylons. They won’t say who is paying for the extra cost of undergrounding cables.
“Without certainty, companies won’t invest. That’s thousands of clean, green energy jobs at risk. Plaid need more than a plan to have a plan.”
Labour said the Welsh Government must now set out how its policy would work in practice, including whether it amounts to an outright ban, what exemptions would apply, and how any extra costs would be funded.
The debate highlights the challenge facing ministers as Wales seeks to expand renewable energy generation while addressing public opposition to large-scale grid infrastructure.
Business
New facilities at Haverfordwest Target Shooting Club agreed
A CALL by a Pembrokeshire shooting club for more disability-friendly facilities has been given the go-ahead by county planners.
In an application to Pembrokeshire County Council, Haverfordwest Target Shooting Club, through agent Andrew Sutton Architecture, sought permission for an extension to existing target shooting club building at The Firing Range, Withybush Road, Haverfordwest to improve accessibility and internal facilities, together with associated landscaping works.
A supporting statement said: “The club’s own published history states it was founded in 1968, moved from the Drill Hall to the old wartime airfield butts at Withybush by the early 1970s, and had developed facilities over time, including the clubhouse by 1999. The established leisure/community use has existed on the site for a number of years and the proposal does not seek to intensify the core activity beyond that already authorised/established.”
It added: “The primary objective of the scheme is to improve inclusive access to the club’s facilities for disabled users and those with reduced mobility. The internal arrangement will provide adequate entrance and lobby space, clear accessible routes and appropriately designed sanitary accommodation, including an accessible wetroom/shower and separate WC.”
It also said accessible parking and surfacing designed to provide a firm, even, slip-resistant route from parking to the principal entrance.
It added: “The Equality Act 2010 places duties on service providers to make reasonable adjustments so that people with additional access needs are not placed at a substantial disadvantage.
“The proposal is therefore a positive enhancement to a community/leisure facility and supports wider policy objectives for inclusive environments.”
It went on to say: “The club operates within a highly controlled environment, and the proposed works will maintain and enhance safety and security measures.”
The application was conditionally approved by planners.
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