The MAM Blog – Additional Permitted Subscription for an ISA


Charles Robertson – Senior Investment Manager

For most investors a Stocks and Shares ISAs is an excellent long-term savings vehicle given the associated exemptions from Income Tax and Capital Gains Tax.

Until recently, the ISA tax benefits were lost on the death of the account holder, but this changed in the 2014 Autumn Budget when the Chancellor announced a new measure called an Additional Permitted Subscription (APS). An APS allows the spouse or civil partner of the deceased ISA account holder to effectively ‘inherit’ the ISA.

The rules relating to an APS contribution are complicated and time limits are applied, but the benefits may be considerable given the potential capital sum involved. Therefore, it is worth seeking advice whenever an ISA is held in a deceased’s Estate. The number of people taking advantage of these new rules has fallen well below initial forecasts and we consider that this is very surprising given the potential tax benefits associated in making an APS.

BBC Radio Scotland – Amanda Forsyth on “Good Morning Scotland”


Amanda Forsyth – Investment Manager & Business Development

On a busy day for corporate results, Amanda Forsyth and BBC Radio Scotland’s Andrew Black discuss the impact that store closures will have on Dixons Carphone; Bovis Homes’ continued turn around; and whether Go Ahead Group might be making progress.

You need to log in to BBC iPlayer for the below content to work.

BBC Radio Scotland – Amanda Forsyth on “Good Morning Scotland”


Amanda Forsyth – Investment Manager & Business Development

Corporate acquisitions take centre stage as Amanda Forsyth and BBC Radio Scotland’s Andrew Black discuss Mike Ashley’s ability to meet the needs of all of House of Fraser’s stakeholders, before moving on to Bain’s bid for esure and John Menzies’ sale of their newsprint distribution business.
And Country Music.

You need to log in to BBC iPlayer for the below content to work.

BBC Radio Scotland – Amanda Forsyth on “Good Morning Scotland”


Amanda Forsyth – Investment Manager & Business Development

Amanda Forsyth and BBC Radio Scotland’s Andrew Black discuss the difference between escalating trade tariffs and full-blown trade war between the US and China; the pressures that the proposed alliance between Tesco and Carrefour is designed to alleviate; and the attractions of debt when interest rates are low.

You need to log in to BBC iPlayer for the below content to work.

BBC Radio Scotland – Amanda Forsyth on “Good Morning Scotland”


Amanda Forsyth – Investment Manager & Business Development

Amanda Forsyth and BBC Radio Scotland’s Andrew Black discuss the challenges Christopher Edwards might face in resuscitating the ailing Poundworld; the emerging trends in UK employment and wages; and the likely trading performance of Scottish cloud hosting business Iomart.

You need to log in to BBC iPlayer for the below content to work.

BBC Radio Scotland – Amanda Forsyth on “Good Morning Scotland”


Amanda Forsyth – Investment Manager & Business Development

Amanda Forsyth and BBC Radio Scotland’s Andrew Black discuss the drivers that have pushed the FTSE 100 Index to a new high; the likely mix of business reported in the forthcoming update from Halfords; Galliford Try’s trials over the Aberdeen bypass; and Bloomsbury Publishing’s uses for their cash pile.

You need to log in to BBC iPlayer for the below content to work.

The MAM Blog – Scottish Income Tax Rates


Richard Johnston – Financial Planning Director

The Scottish Parliament now has much greater power to adjust income tax rates for Scottish residents and has taken the opportunity to do so for 2018/19.

  • Firstly, the higher rate of tax has been increased from 40% to 41%, with the threshold restricted to £43,430. The corresponding level in the rest of the UK is £46,350.
  • Secondly, the basic rate of income tax has been split into three bands – the first £2,000 being taxed at 19% (the ‘starter’ rate), the next £10,150, being taxed at 20% (the new ‘basic’ rate) and the remaining £19,430 taxable at 21% (the ‘intermediate’ rate).
  • Finally, the additional tax rate, applying to income above £150,000, has been increased to from 45% to 46%.
  • This divergence creates some complexities because the Scottish Parliament’s powers do not extend to savings interest, dividends or Capital Gains Tax – all of which work by being added to the individual’s other taxable income to determine the rate at which they are payable.

    In addition, National Insurance (NI) rates and thresholds are not controlled by the Scottish Parliament. For example, as NI rates are 12% for basic rate taxpayers and 2% for higher rate taxpayers, Scottish taxpayers’ earnings between £43,430 and £46,350 will therefore now be taxed at 53% (i.e. 41% + 12%), before falling back to 43% beyond this.

    Personal pension and charitable contributions are also affected, as the default rate of relief applied remains at 20%, but a Scottish taxpayer will have the right to claim the additional 1%.

    It is therefore clear that the changes introduced will not only lead to additional tax for Scottish taxpayers, but potentially some confusion and administrative burden.

    BBC Radio Scotland – Amanda Forsyth on “Good Morning Scotland”


    Amanda Forsyth – Investment Manager & Business Development

    Amanda Forsyth and BBC Radio Scotland’s Gillian Marles discuss the maturing of the Apple business model; the renaissance of growth at BP; the difference that home delivery makes to Just Eat and Pizza Express; and the management changes at Johnston Press.

    You need to log in to BBC iPlayer for the below content to work.