Search results “Annual investment allowance” for the 2016
Annual investment allowance
A guide on how 100% tax relief can be claimed on fixed assets such as plant, equipment, IT Kit etc. REF: F047 Find out more at www.ams-accountancy.co.uk
Views: 699 AMS Accountancy Ltd
Depreciation and capital allowances
This describes depreciation and compares it with Capital Allowances (tax relief on purchase of equipment etc.) REF: F043 Find out more at www.ams-accountancy.co.uk
Views: 2520 AMS Accountancy Ltd
Tim Bennett Explains: The tapered pension annual allowances trap
Higher earners could face penalties for paying the wrong amount into their pensions. This week I explain how to avoid being caught out.
Views: 1604 Killik & Co
Wear and Tear Allowance | The New Capital Allowances Implications For Landlords
Wear and Tear Allowance | The New Capital Allowances Implications For Landlords Michael Wright of RITA explains the new Wear and Tear allowance which came into affect for landlords in April 2016, and how landlords can ensure they make the most of it. Visit their website: http://www.rita4rent.co.uk Share this video: https://youtu.be/BDfNPfB3w-0 Subscribe To Our Channel For Updates http://www.youtube.com/subscription_center?add_user=propertytribes The mission of Property Tribes is simple: To ensure a positive experience of the private rented sector for all. Property Tribes is for anyone who has an interest in property investment, landlord-ism, or the private rented sector. It is a friendly and professional community that offers a huge amount of support and advice for landlords, no matter what their level of experience. It is free to use and members receive a bi-weekly emailer newsletter to ensure that they are kept up to date with the landlord latest. Wear and Tear Allowance | The New Capital Allowances Implications For Landlords Other Videos To Watch: Landlord and Property Tax Tip #10: Saving tax on furnished holiday lets https://youtu.be/lK-rYQhX0o0 Tax changes for landlords and how to minimise the impact of them https://youtu.be/e9ZKkJvVlz4 Tax changes for landlords with the RLA https://youtu.be/Vd1vNZMkNKc Visit Our Website: http://propertytribes.com Connect With Us: http://facebook.com/propertytribesnewsfeed http://twitter.com/4_walls http://twitter.com/nicktadd Wear and Tear Allowance | The New Capital Allowances Implications For Landlords
Views: 804 PropertyTribes
Tapered Annual Allowance
A reduced pension annual allowance for high earners
Views: 505 Stewart Twidle
How to make the most of your pension plan | Show me the money
In this video finance reporter Tara Evans talks through pensions, the best way to invest for retirement and the benefits of a pension tax Get the latest headlines: http://www.telegraph.co.uk/ Subscribe: http://www.youtube.com/subscription_center?add_user=telegraphtv Like us on Facebook: http://www.facebook.com/telegraph.co.uk Follow us on Twitter: https://twitter.com/telegraph Follow us on Google+ https://plus.google.com/102891355072777008500/ On site: http://www.telegraph.co.uk/pensions-retirement/financial-planning/britains-broken-pensions19-things-that-need-to-change-now/ Telegraph.co.uk and YouTube.com/TelegraphTV are websites of The Daily Telegraph, the UK's best-selling quality daily newspaper providing news and analysis on UK and world events, business, sport, lifestyle and culture.
Views: 1332 The Telegraph
Tax Free Investment Accounts
The new tax year begins, you have the opportunity to make use of your Tax Free allowance by investing in a Tax Free Investment Account (TFIA) through SBG Securities*.
Views: 2315 Standard Bank Group
ACCA F6 Taxation - IHT - IHT Planning
Free lectures for the ACCA F6 Taxation UK FA2015
Views: 3798 OpenTuition
Understanding Your Annual Pension Statements
This video provides a step-by-step guide the information on your annual pension statement. It shows how we determine the following information, including your pension estimates, best average annual salary, credit, beneficiary information, contributions and interest.
Views: 1357 OPTrust
What is the lifetime allowance?
Watch our video to learn more from Head of Pensions, Carole Waghorne about the cap on how much you can accumulate in your pension. For further information, visit www.boolers.co.uk
Views: 1151 Boolers
Investing in an investment bond
For many people, investments start with an Individual Savings Account (ISA), but with an ISA you can only invest a certain amount each year. So what options are available once you've used your annual ISA allowance? This video looks at one of the alternatives for investing a lump sum - an investment bond.
Views: 214 Canada Life Ltd
Groundsure - What are Capital Allowances?
Capital Allowances covers a range of different types of tax relief including plant and machinery allowances. Whilst most people think of plant and machinery as items such as farm equipment - on average around 25% of the value of a commercial property is made up of plant and machinery. This can include items such as heating installations, boilers, radiators, lighting and lifts - which can make up a large value in certain properties.
Views: 243 Groundsure Ltd
Retirement Income webinar
Table of Contents: 00:35 - Part 1. How and where to enter pension information in Voyant 00:50 - Uncrystallised money purchases 01:03 - Current drawdown pensions 01:16 - Auto-generated empty drawdown pensions are created to receive funds from future crystallizations 01:29 - Where to set the crystallisation schedule for a money purchase 02:00 - The software's default crystallisation schedule 02:28 - Setting a drawdown strategy 02:44 - Annuitsation 03:00 - Lifetime Allowance protection and carry forward contribution allowances 03:42 - Setting the future escalation of the Lifetime Allowance in Preferences 04:56 - "As needed" crystallisations and drawdown income and the software's default Liquidation Order 06:36 - Part 2. An introduction to our case study - Edward and Susan Lloyd 07:55 - Modeling a retirement goal - Buying a yacht 09:28 - Part 3. Retirement options and income strategies 09:30 - The Base Plan - Crystallise the entire money purchase at retirement, take the maximum in tax free cash upfront and place the remaining funds in a drawdown pension with drawdown income taken as needed to fund retirement 10:41 - Where to view pension crystallisation details 11:45 - Age 75 - Lifetime Allowance checks for uncrystallised money purchase and on drawdown pensions 13:21 - Tracking the accumulation and later the decumulation of pensions and other investments in the Liquid Assets chart 14:00 - Mortality - Inheriting pensions 15:51 - Scenario 1 - Retire early (next year) 17:33 - Use the Performance slider to stress test the plan for lower than expected returns and discover whether there is risk in retiring earlier 19:17 - Find the potential cost of retiring early - Comparing Net Worth between plans 20:09 - Promoting Plans - Make a former scenario the new Base Plan, the agreed upon plan of action 20:48 - Scenario 2 - Take maximum tax free cash at retirement, then take a regular income from a drawdown pension 23:04 - Chart Details X2 - View the complete chart details from both plans when comparing 24:12 - Taxes chart - Compare taxes between two plans 25:02 - Scenario 3 - Crystallise the money purchase as needed, taking tax free cash in each crystallisation 26:51 - Capital Gains - Find the cost of using taxable investments rather than pensions to fund retirement goals 27:56 - Scenario 4 - Annuitise part of the money purchase to provide a guaranteed retirement income 30:21 - Scenario 5 - Defer annuitisation until age 75 31:07 - Updating the Base Plan - Bringing the start date forward and updating fund values during client reviews 31:38 - Scenario 6 - Living longer, stress testing the plan for longer life expectancy 33:38 - Considering downsizing 34:37 - Conclusion - How to contact support and where to find additional information
Views: 4816 voyantuk
Investment Briefing March 2016
Welcome to the latest edition of the Gemini Investment Briefing. In this edition, Gemini Investment Manager, Chris Hill outlines events in the financial markets around the world. Chris also touches upon how a UK exit from the EU or 'Brexit' could affect markets. Chris then also highlights the the importance of utilising the benefits of using your annual ISA allowance before the end of the tax year. As always, we hope you find this months broadcast interesting. If you have any questions, please do not hesitate to contact us on [email protected]
Rental Property Depreciation
Rental Property Depreciation and How to Understand It. What is rental property depreciation? It’s defined as a reduction in the value of an asset over time. In this video, I’m explaining why depreciation is one of the most powerful benefits of real estate investing. Depreciation is important because it helps you keep more money in your pocket, instead of sending it off to the federal government at tax time. Depreciation is a fantastic way to mitigate your overall tax burden, so you’ll want to know exactly how it works. This video contains a specific example of how to calculate depreciation, and how it works inside the current tax code. I’ll also discuss a way to elevate your depreciation strategy, and discuss how raw land ties into this topic. VIDEOS ABOUT GETTING STARTED IN REAL ESTATE https://www.youtube.com/playlist?list=PLZdhTWJ6Yawp1LPllyyeQho_ouMhrbOy6 VIDEOS ABOUT REAL ESTATE NEWS https://www.youtube.com/playlist?list=PLZdhTWJ6Yawp7aUQgMPmAanHSYgP-UI0i SUBSCRIBE AND JOIN OUR AWESOME COMMUNITY: https://www.youtube.com/c/MorrisInvest
Views: 26989 Morris Invest
Budget 2016: Changes to capital allowances
Chris Chandler and Ashley Barnett explain the changes to capital allowance thresholds and its impact on current and future vehicle planning
Standard Lifetime Allowance - Fixed and Individual Protection 2016
Read the supporting article and see details of the various protections available at http://www.courtiers.co.uk/news/standard-lifetime-allowance-fixed-individual-protection-2016
Views: 255 Courtiers
Pension Carry Forward & Tapered Annual Allowance Calculator | CashCalc
Find out more about CashCalc's suite of financial planning tools: www.cashcalc.co.uk
Views: 817 CashCalc UK
What is tapering on the annual allowance?
Watch our video to learn more from Financial Planner, Richard Borrington, about high earners could have a reduced pension contribution limit. For further information, visit www.boolers.co.uk
Views: 323 Boolers
UK Government 2017 Landlord Tax Changes - Restructure to reduce Landlord Tax and Protect Profits
In 2015 George Osbourne unveiled a shock tax change which will comes in to force from 2017 and will remove landlords’ ability to deduct the cost of their mortgage interest from their rental income when they calculate a profit on which to pay tax. In effect the Chancellor wants to tax landlords on their turnover rather than profit, meaning that tax will be payable on non existent income. Many landlords will see their profits wiped out by the tax change. However, Success CXP can restructure your property investment to legally reduce your tax and enable you to keep most of your profits. In addition the new structure will protect your property from Capital Gains Tax and Inheritance Tax. Find out more by attending our next seminar: 27th April 2016 @ 1pm Chesterfield Football Club Proact Stadium Chesterfield Derbyshire S41 8NZ Book online at http://www.successcxp.com/landlords/ Alternatively request further information, request a call back, or a one on one meeting to discuss your specific requirements: http://www.successcxp.com
Views: 175 MarketingComs
MPAA Quick Vid
A quick overview of the Money Purchase Annual Allowance and the potential impact of its reduction from £10,000 to £4,000.
Personal Savings Allowance - Episode 301
In this video I explain the new Personal Savings Allowance in force from April 2016, and how it will work for you.
Views: 3065 MeaningfulMoney
Introduction to capital gains Class 1 (AY 16-17)
For Online Classes Please visit www.Gagankapoorclasses.com and for face to face classes please contact bliss point Studies, 011-45076221. These videos are for Graduation Classes
Views: 106573 Gagan Kapoor
Lisa Webster - Financial Protection 2016 and the Tapered Annual Allowance
Lisa Webster - Technical Resources Consultant, AJ Bell Lisa looks at the difficulties advisers face when advising clients on both Fixed Protection 16 and Individual Protection 16, and discusses strategies for high income earners facing the Tapered Annual Allowance. The information provided in these videos is for the use of professional advisers only. Past performance is not a guide to future performance and some investments need to be held for the long term.
Commercial Bank Revenue Model: Loan Projections
In this tutorial Commercial Bank Revenue Model: Loan Projections, you’ll learn about the key revenue drivers for a commercial bank, with a focus on how to project its loan portfolio based on GDP growth, market share, and addressable loan market sizes. http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 1:46: Overview of Revenue for a Bank 6:47: The Step-by-Step Process to Project Loan Growth 15:06: Calculating and Checking the Loan Size in Each Segment 19:39: Recap and Summary For pure-play commercial banks, the vast majority of their revenue will come from “Net Interest Income”: Interest Income on Loans, less Interest Expense paid on Deposits, Debt, and Other Funding Sources. KEY QUESTION #1: What will the bank’s Loans and Deposits be? KEY QUESTION #2: What will the bank’s Interest Rates Earned and Paid Be? Interest rates are a whole separate topic, and Deposits and Funding Sources are usually linked to Loans, so we’re going to focus on the key drivers behind Loans and Loan Growth here. More so than with “normal companies,” commercial banks’ fortunes are heavily linked to the overall economy. Higher GDP growth results in more transactions – more buying and selling – and to more borrowing by both consumers and businesses. A healthy bank will tend to grow its loans more quickly than the GDP growth rate – credit expansion leads economic expansion. So the first key driver of Loan Growth is GDP growth. Some banks might sell more effectively, might offer more favorable terms for lenders, or might have different lending standards, so market share also plays a role (this is key driver #2). The Step-by-Step Process to Project a Bank’s Loan Portfolio Step #1: Determine the sizes of a bank’s markets (e.g., Mortgages, Auto Loans, and Credit Cards) to calculate its market share(s). Step #2: Make each market a percentage of the country’s GDP. Step #3: Project how the country’s GDP changes in the future. Step #4: Project the bank’s market share in each segment and forecast each loan market as a percentage of the country’s GDP. Step #5: Calculate the Loan Size in each segment with GDP * Loan Market Size as a % of GDP * Bank’s Market Share. Steps 1 & 2: Sizing the Loan Markets Possible Sources: Bank’s IPO Prospectus, Industry Reports (UK – De Montfort Group), Bank’s Interim/Annual Reports or Earnings Calls, Equity Research… If you can’t find data on loan market sizes, make it less granular and look at Total Loans in the country instead and calculate the bank’s market share there. The goal is to get a rough sense of whether the bank’s market share is rising or declining over time. Step 3: Projecting GDP Growth You can find any country’s nominal GDP via sources like Wikipedia, Statista, the IMF/World Bank, etc. For the projections, you can consult with similar sources, but you should also consider different cases and think about what happens if growth continues as expected, what happens if it goes above expectations, and what happens if there’s a recession followed by a recovery. Step 4: Projecting Future Market Share and Addressable Loan Market Sizes Approach #1: Follow and extend historical trends (If the bank is losing/gaining market share, continue that; otherwise, keep it steady). Approach #2: Speak with people in the market, such as real estate brokers and new homeowners, and see if you can discern trends from them (“channel checks”). Approach #3: Look for outside sources such as equity research and buy-side research and see what they’re saying. Step 5: Calculating the Loan Size in Each Segment Loan Size = Nominal GDP * Loan Market Size as % of GDP * Bank’s Market Share The harder part is checking your numbers afterward – Do the estimates seem reasonable? Do they accurately reflect different outcomes? You often want the Base or Upside Case to be close to equity research/consensus/management estimates. And the Downside Case should be real (e.g., 2009-style recession) – negative GDP growth, not just 1% growth rather than 2%. RESOURCES: https://youtube-breakingintowallstreet-com.s3.amazonaws.com/Bank-Loan-Projections-Before.xlsx https://youtube-breakingintowallstreet-com.s3.amazonaws.com/Bank-Loan-Projections-After.xlsx https://youtube-breakingintowallstreet-com.s3.amazonaws.com/Bank-Loan-Projections.pdf
Voyant Introductory webinar
Introductory webinar for Voyant Adviser Table of Contents: 00:14 - Introduction - What is Voyant Adviser? 01:55 - Part 1 - The Let's See charts 02:43 - The black "Need Line" (allocated income) 03:53 - The blue "Basic Need" line (essentials and taxes) 05:18 - Layering on the Let's See charts, the detailed view 05:44 - Supplementing regular income with automatic withdrawals from liquid assets 07:38 - The dual chart view 08:50 - Telling the story by selecting none and building up the cash flow by layers 10:14 - Behind the scenes, the chart details panel 12:21 - Annual taxes summary 13:15 - Part 2 - How did we get here? Building the client case 13:25 - The toolbar 14:16 - Preferences - Managing assumptions and the software's settings 14:29 - System Preferences vs. Plan Preferences 15:00 - Default assumptions for inflation and other growth rates 15:31 - Switching sounds off or on 15:42 - Enabling offline mode. setting an offline password 16:36 - Asset liquidation order, how to set it 17:23 - People - Your clients and their family 17:40 - Risk profile - The FinaMetrica integration 18:02 - Time - The planning timeline 19:31 - Planning years - Setting the start date of the plan 20:45 - Mortality - Life expectancy and how to adjust it 21:22 - Events 22:50 - Delete an event 23:10 - Stages 24:27 - Delete a stage from the timeline 24:49 - Events for simulations (major loss, income protection, critical illness, early mortality) 24:54 - The Base Plan and what-if scenarios 26:07 - Ways to get client information into Voyant: manual entry, integrations with back office systems, our importable fact find 26:15 - Importable fact find 26:43 - Integrations with back office systems 27:03 - Basics - Data entry screens and their components 28:26 - Employment - Entering earnings 29:29 - Step Up / Step Down - Scheduling future increases or decreases in earnings, contributions, expenses, etc. 29:30 - Part time - Model future changes in employment 30:55 - Other income (rental income, royalties, net of tax income from abroad, various tax free incomings) 31:27 - Windfalls 32:01 - How to schedule a one-off income or windfall 32:15 - Growth - Present value vs. future value 32:45 - Savings - Cash accounts 33:29 - Liquidation Limits - Ring-fencing funds within an account 34:11 - Investments 34:48 - Purchase Value - Enter the cost basis for CGT calculations 34:59 - Options for modelling growth on investments - fixed growth vs. asset allocation 36:15 - Pensions 36:50 - Money Purchases 37:26 - Schedule the future crystallisation of pension benefits 39:54 - Drawdown Pensions 40:22 - Final Salary schemes 40:54 - State Pension benefits 41:28 - Property and other (illiquid) assets 43:02 - Linking incomes (e.g. rental income) and expenses to a property 43:27 - Debts 43:44 - Where to enter mortgage payments 43:51 - How to link a mortgage to a property and why 44:28 - Protection 45:06 - The Taxes screen - Entering tax related assumptions that pre-date the start of the plan 45:50 - Model Lifetime Allowance protection 46:45 - Expenses - Categories of expenditure 46:49 - Basic expenses - Entering essentials, fixed costs 47:48 - Recurrence - How to model a recurring lump sum expenditure (e.g. car replacement) 48:37 - Leisure expenses 49:00 - Step Up / Step Down - Schedule future increases or decreases in expenditure, apart from inflation 49:17 - Milestone expenses 49:22 - How to schedule a one-off expenses 49:32 - Legacy expenses - PETs and charitable gifts 49:48 - Estate Plans - Setting alternative estate distributions usually in accordance with your client's will 50:19 - Part 3 - Let's See chart - Viewing, presenting and discussing the results with clients 50:40 - What-if plans - Considering issues, options, alternatives and aspirations 52:02 - Inheriting information - The Base Plan and its child scenarios 52:31 - Edit Time button - Move events on the timeline and see the results directly on the Let's See charts 53:11 - Compare Plans - Compare results between scenarios and against the Base Plan 54:05 - Unallocated surplus income - View your client's capacity to save more 54:33 - Surplus income - Is it spent or is it saved? 55:57 - Simulations - Annual savings need analyser 58:34 - Simulations - Investment return rate need analyser 59:18 - Simulations - Lump sum need analyser 59:56 - General Overviews - Sense checking 01:00:33 - Legacy overview - Showing estate distributions and potential IHT liability 01:01:32 - Asset Allocation overview 01:02:06 - Part 4 - Reports and notes 01:03:17 - Notes - Adding notes to client cases 01:03:50 - Part 5 - Where to find and other resources 01:04:36 - Help - Acces the knowledge base for online help topics 01:05:02 - Where to register for a free trial of Voyant Adviser and AdviserGo 01:05:36 - Support and training resources on the Voyant website 01:05:51 - Find more information about our products and services, including rebranding 01:05:56 - Part 6 - AdviserGo, Voyant's tablet friendly web app
Views: 10410 voyantuk
Estate Planning webinar
Table of Contents: 00:28 - Introducing our client, the Uttleys 02:45 - Part 1, Legacy Overviews - View your client's potential IHT liability 04:15 - Immediate legacy summaries 04:34 - Joint immediate legacy summary 04:41 - The Joint Immediate Legacy summary - The default estate distribution for joint immediate legacy and how to set a survivorship clause in Preferences 05:52 - Part 2, Estate Plans - Where to view the software's default estate distributions and how to set alternative distributions 07:22 - Part 3 - Use what-if scenarios for IHT planning 07:49 - Scenario 1 - Sell investment bond, purchase discounted gift trust (DGT) 10:13 - Beneficiaries - Remember to specify the beneficiaries for DGTs, investment bonds, and protection policies 11:03 - Scenario 2, Annual Exempt Gifts - Utilise the annual gifting allowance 11:24 - Legacy Expenses - Where to enter gifts (as well as charitable donations) 12:52 - Scenario 3, Draw Pension Last - Use flexi-drawdown to retain funds in pension and fund retirement using other assets first 14:27 - How to adjust the software's liquidation order in Preferences 15:16 - Compare the potential IHT liability between plans in the Legacy Overview 15:16 - Where to view annual exempt gifts, potentially exempt and chargeable lifetime transfers in the Legacy Overview 15:55 - Part 4 - Simulations 15:55 - Potential IHT Simulation - Compare the potential IHT liability, year on year, between two plans 16:55 - Use the Annual Savings Need Analyser to discover how much more your clients might gift or spend annually to reduce their estate
Views: 1613 voyantuk
Gates Foundation investing US$5billion in Africa
Microsoft co-founder and billionaire Bill Gates says Africa should invest appropriately to get the best developmental gains. Delivering the 14th Nelson Mandela lecture in Pretoria Sunday, he said the Bill and Melinda Gates Foundation will donate five billion dollars over the next five years - targeting vaccine initiatives on the continent. For more news, visit: http://www.sabc.co.za/news
Views: 526 SABC Digital News
Marriage Allowance, what you need to know - BSL version
A short HMRC video presented in British Sign Language explaining tax allowances for married couples and civil partners. HMRC is the UK’s tax, payments and customs authority. We collect the money that pays for the UK’s public services and help families and individuals with targeted financial support. Follow HMRC on social media: • Twitter: https://twitter.com/HMRCgovuk/ • Facebook: https://www.facebook.com/HMRC/ • LinkedIn: https://www.linkedin.com/company/hm-revenue-&-customs For help with general queries relating to any of HMRC’s products and services, talk to us on: • Twitter: https://twitter.com/HMRCcustomers/ • Facebook: https://www.facebook.com/HMRC/ Sign up for your Personal Tax Account. Join the millions of customers already using their online account to check and update their records and see their state pension details. It takes just 5 minutes at https://www.gov.uk/personal-tax-account
Views: 1203 HMRCgovuk
Interest Only or Capital Repayment Mortgage?
A quick overview that examines the difference between a capital repayment mortgage and an interest only mortgage. Each has advantages and disadvantages depending on your financial strategy. Check out other relevant videos: Basic Finance Guide Part 1: https://youtu.be/gixva7aWFUg How does UK Tax work? - What you need to know about HMRC & PAYE: https://www.youtube.com/watch?v=fCRsO22eHEY You can buy our handy personal finance spreadsheet from our ebay store here: http://www.ebay.co.uk/itm/162205554572 Or search for ‘Fast Finance Spreadsheet’ You can watch the spreadsheet tutorial here: https://youtu.be/75ttMLaVa2E Music: http://www.purple-planet.com Video: Videezy.com Pictures & Video: Pexels.com
Views: 794 Fast Finance
How does tax relief on pensions work?
Watch our video to learn more from Financial Planner, Richard Borrington, about one of the many benefits of pension contributions. For further information, visit www.boolers.co.uk
Views: 3168 Boolers
How can I fund my SIPP?
Tom Selby, AJ Bell’s Senior Analyst, explains how you can pay contributions in to your SIPP, your annual allowance, and how tax relief works. https://www.youinvest.co.uk/sipp
Views: 1759 AJ Bell Youinvest
Annual P3 Property Investments Workshop 8 2016 3
An in-depth discussion on property investment in South Africa. Where we cover - property investment strategy, how to choose properties for investment and how to invest in properties and general property investment tips.
The Allowance for Loan Losses for Banks (FIG)
In this tutorial, you’ll learn all about the Allowance for Loan Losses and the Provision for Credit Losses for commercial banks, which are important topics related to accounting and valuation for financial institutions (FIG). These topics are extremely likely to come up in interviews with these groups, and will come up on the job day in and day out. http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 3:03 Part 1: Allowance for Loan Losses vs. Regulatory Capital 4:24 Part 2: Loan Loss Accounting on the Financial Statements 8:18 Part 3: Example Scenarios to Illustrate the Mechanics 16:45 Part 4: How Regulatory Capital and the Allowance for Loan Losses Are Linked 19:50 Recap and Summary The Business Model of Commercial Banks Banks collect money from customers (deposits), and then lend I to people who need to borrow money (loans). They *expect* to lose something on these loans because some people and companies default and become unable to pay back their loans. But there are two categories: *expected losses* and * unexpected losses*. The Allowance for Loan Losses corresponds to *expected losses*, while Regulatory Capital corresponds to *unexpected losses*. Loan Loss Accounting on the Three Financial Statements Balance Sheet: The Allowance is a contra-asset that’s netted against Gross Loans to calculate Net Loans. Additions: The Provision for Credit Losses will increase this reserve, making the contra-asset more negative. This Provision represents the *additional* amount, above and beyond the existing Allowance, that the bank expects to lose. Subtractions: Net Charge-Offs (actual defaults) will reduce this Allowance, making the contra-asset less negative. Income Statement: The Provision for Credit Losses is an expense that reduces Pre-Tax Income and Net Income, but Net Charge-Offs do not appear on the IS... not directly, anyway. Cash Flow Statement: The Provision for CLs is a non-cash add-back; you also record Loan Additions here. Just as with the Income Statement, Net Charge-Offs do NOT show up here. Loan Loss Accounting, Illustrated in Different Scenarios Scenario #1: The Bank expects to lose an ADDITIONAL $10 on its Loans It simply records $10 for the Provision for Credit Losses. Gross Loans stays the same, but the Allowance becomes $10 more negative, and Net Loans declines by $10 as a result. Scenario #2: Bank adds $100 in Loans, and expects to lose $5 on them It records $5 for the Provision for Credit Losses. Gross Loans increases by $100, the Allowance becomes $5 more negative, and the Net Loans figure increases by $95. Scenario #3: Now the bank actually loses $5 and records the charge-off The Gross Loans figure declines by $5 and the Allowance for Loan Losses becomes $5 more positive. Those changes cancel each other out, and so the Net Loans figure stays the same. There’s no Income Statement impact. Scenario #4: …but now, there’s a recovery of $2! Due to collateral, or the borrowers suddenly repaying some of the loan Now, the Gross Loans figure increases by $2, but the Allowance also becomes $2 more negative – so the changes cancel each other out once again, and Net Loans stays the same. There’s no Income Statement impact. Scenario #5: The Allowance is $10, but there’s a Gross Charge-Off of $20 – what happens? How can this possibly work? In this case, the bank simply has to *increase* its Allowance for Loan Losses to cover this unexpected loss. So the bank might set aside, say, an additional $20, and therefore record a $20 Provision for Credit Losses, which results in a higher Allowance to cover this loss. The Net Loans figure ends up declining because the Gross Loans figure will fall and the Allowance will eventually return to its original level. How Regulatory Capital and the Allowance for Loan Losses Are Linked So how exactly does Regulatory Capital (mostly Common Equity or Equity) “absorb” losses? Because when an unexpected loss occurs, banks have to increase their Allowance for Loan Losses. They do this by increasing the Provision for CLs, which reduces Net Income since it appears on the Income Statement. That reduced Net Income, in turn, reduces Shareholders’ Equity. So Regulatory Capital “absorbs losses” by ensuring that Equity stays above a certain level, even if Net Income falls… since a dramatic drop in Net Income would come, most likely, from unexpected losses. The capital ratios fall when this happens, as they should. RESOURCES: https://youtube-breakingintowallstreet-com.s3.amazonaws.com/Allowance-for-Loan-Losses.xlsx https://youtube-breakingintowallstreet-com.s3.amazonaws.com/Allowance-for-Loan-Losses.pdf
High Income - HL Multi-Manager Fund - new launch
With many traditional sources of income drying up, and the end of the tax year fast approaching, our new HL Multi-Manager High Income Fund could be an excellent choice for this year's ISA or SIPP. NB. Risk of losses
Views: 3391 Hargreaves Lansdown
Capital Assets and the various types of capital assets
CA Ameet Patel elaborates on the concept of capital asset and explains the different items that are excluded from the definition of the term 'capital asset'. The video explains the distinction between short-term capital asset and long-term capital asset. For more information visit our website : http://foundation.moneylife.in/ Register : http://moneylife.in/register/ Follow us on Facebook : https://www.facebook.com/moneylifedailyclinics/ Follow us on Twitter : https://twitter.com/MoneylifeF
Views: 2506 Moneylife
What can a SIPP invest in?
Watch our video to learn more from Head of Pensions, Carole Waghorne about what assets can be held within a Self Invested Personal Pension. For further information, visit www.boolers.co.uk
Views: 341 Boolers
Podcast: Drawdown - how to invest and withdraw
The pension freedoms have resulted in a surge of interest in drawdown. Listen to our podcast to hear about the risks drawdown investors face and how they could be reduced.
Views: 5711 Hargreaves Lansdown
New IHT Family Home Allowance
http://www.iwc-ltd.co.uk/blog/new-iht-family-home-allowance/ New IHT Family Home Allowance https://youtu.be/VrR_aT8KFA8 A new monthly record for the amount of Inheritance Tax taken by HM Revenue and Customs was set this April. The take of £397 million stands well in excess of the average monthly take of £260 million over the last ten years. Furthermore, the Inheritance Tax of £1 billion collected by HMRC for the three months to the end of May is the highest figure for any three month period since 2007, when £1.1 billion was taken in the three months to the end of August. Although the government has announced reforms which it says should reduce the Inheritance Tax burden, some commentators believe that the proposed reforms are too complex and could distort the housing market. Visit IWC Probate Services Video Channels for more information: http://www.youtube.com/user/tonycrockerIWC
Views: 49 Tony Crocker
Inheritance Tax: Changes to IHT
Alix Storrie and Chris Sheldon discuss the recent changes to inheritance tax including the main residence nil rate band.
Views: 786 Turcan Connell
Investment Declaration
Investment Declaration
Views: 617 Su-kam HR
A Golden Egg - Pension Gold!
A Golden Egg - Pension Gold! Watch our short video and learn how we can source the best investment gold for your pension, with the added bonus that there’s up to 45% income tax relief and no Capital Gains Tax. Find out more by calling us on 020 7060 9992 or download this handy free guide on pension gold. (http://physicalgold.com/insights/2016/09/pension-gold-explainer/)
Views: 1215 Physical Gold Ltd
Sub for more: http://nnn.is/the_new_media | JON ROGERS for the Express reports, A SENIOR financial analyst has claimed that if Deutsche Bank is allowed to fail it will collapse the entire European banking system. Ewen Cameron Watt, a senior director at investment managers Blackrock Investment Institute, told CNBC: "If Deutsche Bank doesn't make it, forget European banks as a whole.” "I think if you look at Deutsche Bank, what John Cryan (Chief Executive, Deutsche Bank) is doing is trying to lead a very long march back to a sustainable model. Got Kids or Grandkids? Take a break at our new Kids Channel: (( SUBSCRIBE )) http://bit.ly/sub-to-Banchi-Brothers See the report here: https://youtu.be/3J-Gi5XSlF8 Read More/Source/Credit(FAIR USE): http://www.express.co.uk/news/world/745821/Deutsche-Bank-failure-destroy-European-banking-system-John-Cryan ------------------------------------------------------------------------------------ SUPPORT THE NETWORK WITH THE LINKS BELOW! ------------------------------------------------------------------------------------ Patreon $5/mo: http://nnn.is/monthly-gift-5 Give Once: http://nnn.is/one-time-gift Give BTC: 13Hd1HFqS5CDLCMcFQPWu9wumubo6X2hSM Tip Brian The Editor: http://nextnewsnetwork.com/tip-the-editor/ T-Shirt Shop: http://nnn.is/get-your-gear-here Teach Your Child About Liberty: http://nnn.is/1HvxU37 Learn What Stocks Will Survive The Collapse: http://nnn.is/n3-trade-genius Watch Us on Tiger Steam! http://nnn.is/GET-TIGER --- $50 off promocode: BUYTIGERSTREAM Get The Tea! http://GetTheTea.com Stock Up On Survival Food Today! http://www.foodforliberty.com/nextnews GET YOUR TACTICAL GEAR! Get The Light! http://nnn.is/tac-lights Get The Pen! http://nnn.is/tac-pen Get The Headlamp! http://nnn.is/tac-headlamp ---------------------------------------- FOLLOW US ON SOCIAL! --------------------------------------- http://Facebook.com/NextNewsNet http://Twitter.com/NextNewsNet http://NextNewsNetwork.com Hashtag: #N3 Copyright Disclaimer: Citation of articles and authors in this report does not imply ownership. Works and images presented here fall under Fair Use Section 107 and are used for commentary on globally significant newsworthy events. Under Section 107 of the Copyright Act 1976, allowance is made for fair use for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Community Guidelines Disclaimer: The points of view and purpose of this video is not to bully or harass anybody, but rather share that opinion and thoughts with other like-minded individuals curious about the subject to encourage conversation and awareness.
Views: 42018 The Next News Network
Dividend tax changes from April 2016, buy to let to Limited Company with Taj Accountants
Dividend tax changes from April 2016 – An overview of the fiscal effects for small-scale business owners From 6 April 2016, the manner dividend income is taxed will shift significantly. The changes will impact thousands of small business owners, a number of whom will see a huge jump in the quantity of tax they are going to need to cover. As ‘tax paid in the control of investors, business dividends are treated at present. Nevertheless the tax treatment of dividends will likely be changed drastically, and this isn’t going to result in limited company managers paying less tax, as it is possible to imagine! But, from April 2016, every person will receive an annual £5,000 tax free limit for dividend income. From April 2016 dividend income over £5,000 will be taxable Dividend income of over £5,000 (and after using up any remaining private allowance) will be taxed at 7.5% for basic rate taxpayers, 32.5% for higher rate taxpayers and 38.1% for those on the highest incomes who pay added rate income tax. The effect of the changes will drop especially on smaller businesses, where owner-managers take income as a combination of wages and dividends from their firms. Broadcasted on Channel S on 30/12/2015, news on taxation changes, dividend tax changes from April 2016, small business effected by new £5000 dividends allowance, freelance directors effected by £5000 dividends allowance, expense claims for companies, regulations on expense claims, allowable and disallowable expenses, taxation changes on property income tax, property rental tax changes, buy to let property tax changes, buy to let to limited company. Bangladeshi small businesses and freelancers are affected by the tax changes.
Views: 923 Taj Accountants
Killik Explains: A short guide to personal pensions (SIPPs)
SIPPs can offer a tax-effective way to save for retirement – here’s Tim Bennett's updated summary.
Views: 3668 Killik & Co
Pushdown accounting overview
Learn more at PwC.com - http://www.pwc.com/us/en/cfodirect/multimedia/videos/applying-pushdown-accounting-asu-2015-08.html Pushdown accounting is now optional for companies that have been acquired in a business combination. PwC’s Jonathan Franklin discusses what it means and what to consider when deciding whether or not to apply pushdown accounting.
Views: 2366 PwC US
Annuities Lead the Pursuit to Predictable Income - Right on the Money -  Part 3 of 5
Sub Headline: Bonds’ low returns and risks of rising rates have investors seeking shelter. Synopsis: High concentrations in low-return bond allocations can spell portfolio stagnation. Retirees now realize that the traditional 4% safe withdrawal rate is less than 3%. Annuities offer relief, but the value of income riders as a defense against inflation is questioned. Content: Pressure to both preserve principal and generate income have retirees in a quandary. Having spent their portfolio accumulation years under the assumption that bonds were a safe option that could provide a 6% - 8% annual return, many are experiencing closer to 2%. These retirees have neither the time nor the risk tolerance for a significant bond turnaround. Compounding matters is the realization that an assumed annual safe withdrawal rate of 4% of assets is closer to 2.8%. This 30% annual reduction can cost retirees $12,000 annually – the difference between $40,000 and $28,000 – from an original million-dollar nest egg. Commonly known as the gauge of assets’ endurance for a lifetime, there’s still a 10% risk of depletion at the 2.8% withdrawal rate. Adoption of fixed index annuities featuring guaranteed lifetime income and principal-protection measures has steadily grown in recent years. Many factors affect both the cost and benefit including the principal investment, years until initial payout and the amount to be paid monthly or annually. Income riders are an optional item for purchase, and can serve as a hedge against inflation and the uncertainty of any cost-of-living allowance from Social Security. COLA’s have been a no-show in several recent years, and 0.3% annualized for 2017, barely merit a monthly cup of coffee for many recipients. Given these circumstances, it’s initially logical to think of income riders as a no-brainer. However, some advisers – perhaps a minority – have begun to question their inclusion based on the cost/value relationship. They reason that riders reduce withdrawal percentage rates to the point that there’s little difference in the monthly payout, and that by eliminating the rider, there’s no fee, and the time will come sooner for the insurance company to subsidize the monthly withdrawals. Because annuities vary by carrier and are highly customizable, it behooves investors to gain all available knowledge with the help of an expert to determine if an annuity is a suitable solution for achieving predictable income. Steve Savant interviews top retirement specialists in their field of expertise. This segment features retirement specialist Spencer Frankenberger. Right on the Money is a financial talk show distributed in daily video press releases to over 280 media outlets and social media networks. (www.rightonthemoneyshow.com) https://youtu.be/WVjp6z3Hdgw
Pension lump sum withdrawals
Describing the dangers of taking a lump sum from your pension and how to get a tax refund within 30 days of claiming it. REF: F042 Find out more at www.ams-accountancy.co.uk
Views: 2013 AMS Accountancy Ltd

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