Couples , financial security, personal incom
The need for financial security and independence are a predominant concern for most citizens globally. In its very definition the ability to earn and willfully spend one's income is at the core of maturity as defined by social norms. This is also the case for governments and institutions. So the question is therefore how such a financial stability can be achieved? The most obvious answer to this is by investing. Investing refers to the deliberate and calculated directing of funds into revenue generating activities.
Almost invariably not all individuals are born into financial security. As a result they must therefore find ways to channel their finances such that they can grow significantly unto the future. Usually investments are made directly out of savings; savings out of personal income. The economic model for this relationship is given as i f (s); s f (y). This therefore means that investments are a consequence of foregone present consumption of personal income. This may perhaps be the elusive point to most young people eyeing for immediate financial prosperity without the sacrifice of and discipline regarding present consumption.
[...] However, this needs to be done rationally through opening of a business bank account where all rental income will be deposited and expenses regarding the mortgage be paid out of. Furthermore, profits from the rental income can be used to reduce the mortgage liability. The married couples and civil partners can lower their tax obligation through charitable donations to UK based charities or Community Armature Sports Club on Gift Aid by claiming a basic tax rate of 20% on the amount of donations during the tax period. [...]
[...] The current annual investment is 11,280 and individual investors can acquire a tax deduction amounting to 5,640 in cash investment with one provider. Insurance is another avenue with which married couples and civil partners can reduce their tax obligation. Life insurance can be bought to cover the individual or both the spouses. Presently, joint insurance is available for “first death” insurance policies. This means that the policy covers the death of one of the couples after which the surviving partner is no longer covered by the policy. This rule however becomes extinguished where both the partners are covered by separate policies. [...]
[...] The personal allowance applies to all tax paying citizens irregardless of their marital status. Consequently the tax benefit for those in recognized unions by the law will be to the extent of their earnings. Recent policies by the coalition government have been geared towards helping to crack down on tax avoidance by the ultra-rich members of the British society. However, whilst this is a morally sound proposal, there have been cries that politicians are tentatively blurring the line as between tax evasion and tax avoidance (Simon). [...]
[...] Another demerit is that if there was a previously existing will before the registration of this union, upon registration, the will and its stipulations become null and void making the partner the primary inheritor of the spouse's assets in case of death of one of the partners. The law provides selective application to this rule in the sense that Civil Partners are only equal with regard to public sector pension schemes. Private sector pension schemes are not recognized under the Act and the benefits are guaranteed retrospectively to civil partners up to 1988 only. Married couples and civil partners can invest in individual saving accounts (ISAs). [...]
[...] As tenants in common, the couple can decide to own property in any proportion they desire other than by the 50/50 rule. Another advantage is that the couple can decide to bequeath their properties to anyone through their will thereby avoiding the direct inheritance clause by the surviving spouse. As joint tenants, the surviving partner inherits the property of the deceased directly. However the IHT bill still applies. Under the Marriage Couple's Allowance, the maximum allowance under the current taxation period 2012/2013 equates to minimum amount of 2,960 and a maximum of 7,705. [...]
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