Jargon Buster

Annual Exempt Amount (AEA)

Each tax year nearly everyone who is liable to Capital Gains Tax gets an annual tax-free allowance – known as the Annual Exempt Amount. You only pay Capital Gains Tax if your overall gains for the tax year (after deducting any losses and applying any reliefs) are above this amount.

Annual Management Charge (AMC)

Fund Managers apply an Annual Management Charge (AMC) which is deducted directly from the fund to cover on-going management services. It excludes costs such as fund administration services and custodian charges which form part of the Total Expense Ratio (TER).

Business Asset Disposal Relief

Business Asset Disposal Relief (formerly known as Entrepreneur’s Relief) is a tax relief available to shareholders selling shares and business owners selling business assets. For those individuals that qualify, it means you will only pay tax at 10% on all gains on qualifying assets.

If you are selling all or part of your business, to qualify for the relief, both of the following must apply for at least 2 years up to the date you sell your business:

• You are a sole trader or business partner
• You have owned the business for at least 2 years

If you are selling shares or securities, both of the following must apply for at least 2 years up to the date you sell your shares:

• You are an employee or office holder of the company (or one in the same group)
• The company’s main activities are in trading (rather than non-trading activities like investment) – or it is the holding company of a trading group

Capital Gains Tax (CGT)

When you sell or give away an asset for more than you paid (or it is worth more than when you were given it) you have made a capital gain. An annual tax-free allowance (known as the Annual Exempt Amount) allows you to make a certain amount of gains each year before you have to pay tax. If the total of any gains realised in the year, minus any losses, exceeds your Annual Exempt Amount the excess is liable to CGT. Every individual, including husband and wife, have their own limit. So, if an asset is owned jointly, husband and wife can each use their own Exempt Amount. For individuals, the Annual Exempt Amount is currently £12,300.

Chargeable Gain

It is generally the amount by which the value of a policy exceeds the amount paid into it. Chargeable Gains can also arise when the amount withdrawn from certain policies exceeds certain allowances.

Corporate Bond

Corporate Bonds are issued by companies to raise capital. They are an alternative to issuing new shares on the stock market.

Discretionary Fund Management (DFM)

A Discretionary Managed Portfolio is managed on a client’s behalf according to agreed investment objectives and risk criteria. Within the agreed criteria, the Manager has absolute discretion to make changes to the assets held within the portfolio – increase, reduce or remove existing assets – and to buy new assets. DFM portfolios can be more expensive than other methods of holding assets but can be attractive to clients who wish to have a professional management service that is more personalised.

Early Withdrawal Charges

An early withdrawal charge is a penalty that will be applied to an investor for withdrawing funds from an investment earlier than is expected, for example, prior to the maturity date.

Enterprise Investment Scheme (EIS)

An Enterprise Investment Scheme (EIS) is a government scheme designed to encourage investment in growing businesses by offering tax reliefs to individuals investing in small unquoted trading companies. Up to 30% income tax relief can be claimed on investments up to £1 million in each tax year. This cap rises to £2 million if at least £1 million of that is invested in knowledge-intensive companies (meaning the maximum tax relief available is £600,000). A business can qualify as a knowledge-intensive company if they are developing an Intellectual Property (IP) that is expected to be the company’s main source of income 10 years from the date the company received investment and a minimum proportion of their operating costs (between 10-15%) are spent on Research & Development or Innovation.

Fund Supermarket

A Fund Supermarket is an organisation which can provide a convenient way of investing in collective investment funds. The ‘supermarket’ term reflects the way in which they operate; a variety of funds can be purchased from a number of different management groups in one online place.

General Investment Account

A General Investment Account (GIA) is a flexible account which can be used to hold money in excess of your ISA allowance. There is no limit on how much you can invest, and you can hold an Account in your own name or jointly with someone else. The money is invested in collective funds via Unit Trusts or OEICs and is allowed to grow in the same way as an ISA, however unlike an ISA, there are no tax benefits for investing in a GIA.

Gilt

Gilts are fixed income or index-linked bonds issued by the UK Government. When you buy a gilt, you are lending the government money in return for regular interest payments and the promise that the nominal value of the gilt will be repaid (redeemed) on a specified later date.

Individual Savings Accounts (ISA)

An ISA is a tax-efficient way to save or invest. There are two types of ISA, a Cash ISA and a Stocks & Shares ISA. ISAs are effectively a tax-efficient wrapper in which you can hold either cash or stock market-based investments. The attraction is that any gain in the value of the investment is free of either income tax or capital gains tax, making them particularly attractive to higher and additional rate taxpayers. The overall annual subscription limit is currently £20,000 and this full amount is permitted to be held in cash, stocks and shares, or any combination of the two. Individuals are permitted to transfer any funds previously invested in stocks and shares into cash, and vice versa, outside of annual subscription limits.

If an ISA saver in a marriage or civil partnership dies, their spouse or civil partner inherits their ISA tax advantages. Surviving spouses are able to invest as much into their own ISA as their spouse used to have, on top of their usual allowance.

In specie Transfer

This is the transferring of customer assets from one platform or provider to another without the customer having to sell and re-purchase their investment. This is sometimes referred to as ‘re-registration’.

Investment (Insurance) Bond

This is a non-qualifying single premium whole of life policy. A single payment is made and units are purchased in a fund or funds of the investors’ choice.

Investment Trust

Please note an investment trust company is a company listed on the London Stock Exchange and by investing, you become a shareholder in a public limited company. Investment trusts own equities which are also listed and are subject to market fluctuations. Investment Trusts can borrow to buy additional investments. This is called gearing. The idea is to make enough return on the investments purchased to cover the costs of the loan and to give a profit on top. If a Trust ‘gears up’ and the markets rise, then the returns for investors should rise. However, if the markets fall, losses could be magnified. Not all Trusts do gearing and most only use it to a small extent. However, funds which do a significant amount of gearing can be subject to sudden and large falls in value.

Junior Individual Savings Accounts (JISA)

Junior ISAs replaced Child Trust Funds (CTF). They are a long-term, tax-free savings account for children who are under the age of 18, resident in the UK and weren’t entitled to a Child Trust Fund (CTF) account. There are two types of Junior ISA, a Cash Junior ISA and a Stocks & Shares Junior ISA. Junior ISAs are effectively a tax-efficient wrapper in which you can hold either stock market-based investments or cash, on behalf of the child as the registered contact. The overall annual subscription limit is currently £9,000 and this full amount is permitted to be held in cash, stocks and shares, or any combination of the two. Individuals are permitted to transfer any funds previously invested in stocks and shares into cash, and vice versa, outside of annual subscription limits.

The Key Investor Information Document (KIID)

KIIDs have been introduced by law as part of an effort to improve investor information. European Legislation states that fund managers communicate important information about the relevant characteristics of a fund in consistent and plain terms. KIIDs must include the fund’s objective, investment policy, past performance where available, charges and a ‘synthetic risk reward indicator’, which assigns each fund a risk level of between one and seven based on volatility over the previous five years. KIIDs only have to be provided for direct investments in collectives, such as ISAs, Junior ISAs and collectives. KIIDs are not mandatory for investments through a life wrapper, such as a bond or pension.

The Key Information Document (KID)

Regulations introduced from the 1 January 2018 requires a new mandatory Key Information Document (KID) be provided to retail investors by any persons who manufacture, advise, or sell a Packaged Retail and Insurance-based investment product. The information is required by law to help investors better understand and compare the key features, risk, rewards and costs of different products and should be provided to the investor in good time before any transaction is concluded.

Lifetime Individual Savings Accounts (LISA)

LISAs are designed to help those between 18 to 40 save flexibly for the long-term for a first home up to a value of £450,000 or for their retirement from age 60, without having to choose one over the other. LISAs are effectively a tax efficient wrapper in which you can hold either cash or stock market-based investments. Similar to ISAs the attraction is that any gain in the value of the investment is free of either income tax or capital gains tax, making them particularly attractive to higher and additional rate tax payers. Individuals can open a LISA from age 18 to age 40 and can contribute up to £4,000 in each tax year. The government will then provide a 25% bonus on these contributions at the end of the tax year. Savers can make LISA contributions and receive a bonus from the age of 18 up to the age of 50. Contributions to a LISA will sit within the overall current ISA subscription limit of £20,000. The government bonus (up to £1,000 per year) does not count towards the £4,000 LISA or overall £20,000 ISA subscription limits. Contributions, investment growth and the government bonus can be withdrawn tax-free and without penalty if used to buy a first home worth up to £450,000 at any time from 12 months after opening the account, or for any other purpose from age 60.

National Savings Certificates

National Savings Certificates are regarded as a safe home for your money. They are backed by HM Treasury and therefore guarantee absolute security for your cash. There is a range of different types of products depending on whether you want income or capital growth, and whether you are a taxpayer or not. It includes index-linked and fixed-interest certificates, savings bonds and income bonds.

Ongoing Charges Figure (OCF)

The Ongoing Charges Figure (OCF) represents the ongoing costs involved in running an investment fund. It includes charges such as the Annual Management Charge (AMC), administration fees, transaction fees, regulatory fees and other expenses. The OCF is always quoted as a single percentage figure. For example, if a fund has an OCF of 0.50%, then for every £1,000.00 you invest, £50.00 goes towards the costs of running the fund.

Open Ended Investment Company (OEIC) Investment

‘OEICs’ are hybrid investment funds which have some of the features of an investment trust and some of a unit trust. Like investment trusts, OEICs are companies which issue shares on the London Stock Exchange, and which use the money raised from shareholders to invest in other companies. Unlike investment trusts, they are open-ended which means when demand for the shares rises the manager just issues more shares. With an investment trust, if demand exceeds supply, the response may be a rise in the share price.

Offshore Bond

An offshore wrapper in which you can hold a variety of investment funds such as unit trusts and open-ended investment companies (OEICs)

Personal Equity Plan (PEP)

A PEP was a form of tax-privileged investment account. From 6th April 2008, all PEP accounts became stocks and shares ISAs and as such PEPs ceased to exist.

Reduction in Yield (RIY)

The term ‘Reduction in Yield’ – or RIY – is a way of expressing the impact of all charges and deductions on a policy over a period of time. It sets out the reduction in the yield or return that would otherwise have been provided if the policy carried no charges at all. The RIY has the effect of reducing the growth rate shown in your illustration which means lower returns for you. Examining the RIY is an excellent way of judging whether a policy is good value.

Re-registration

This is the transferring of customer assets from one platform or provider to another without the customer having to sell and re-purchase their investment. This is sometimes referred to as ‘in specie’ transfer.

Seed Enterprise Investment Scheme (SEIS)

A Seed Enterprise Investment Scheme (SEIS) is a government scheme designed to encourage investment in small early stage businesses by offering tax reliefs to individuals in small unquoted trading Companies. Up to 50% income tax relief can be claimed on investments up to £100,000 in each tax year (meaning the maximum tax relief available is £50,000).

Total Expense Ratio (TER)

The Total Expense Ratio (TER) provides investors with a clearer picture of the total annual costs involved in running an investment fund. The TER consists principally of the manager’s annual charge, but also includes the costs for other services paid for by the fund, such as the fees paid to the trustee (or depositary), custodian, auditors and registrar. Collectively, these fees are known as the ‘additional costs’. TERs are typically between 1% and 2% (this figure may be in excess of 2% when investing in Fund of Funds). It is likely that large funds will have lower TERs than small funds, that funds investing in overseas markets have higher TERs than UK funds and that new funds will show higher costs than old funds. However, the principal difference in TERs is whether the fund manager has a higher or lower annual charge.

Unit Price Adjustments

An investment fund may hold back some of the profits in good years to boost the profits in bad years – this process is called ‘smoothing’. To achieve this, the unit price value of a fund may be amended up or down to ensure not too much or too little profit is being returned when the shorter- term performance of a fund differs too much from its expected Growth Rate.

Unit Trust

Unit Trusts are collective funds which allow investors to pool their money in a single fund, thus spreading their risk, getting the benefit of professional fund management, and reducing their dealing costs.

Venture Capital Trust (VCT)

The government provides valuable tax incentives to attract investors to invest in smaller companies. One of the ways it does this is through a Venture Capital Trust (VCT), which invests in small businesses whose shares are not listed on a main stock exchange. The VCT itself is listed on the London Stock Exchange. Up to 30% income tax relief can be claimed on investments up to £200,000 in each tax year (meaning the maximum tax relief available is £60,000).

Volatility

Volatility refers to the amount of risk about the size of changes in a funds value, the volatility figures are generally based on an average over a 3-year timeframe. A high volatility indicates that the value can change dramatically over a short time period in either direction. A low volatility means that a security’s value does not normally fluctuate dramatically, but changes in value at a steady pace over a period of time.

With-Profits

The money you put into a with profits fund is pooled with other investors’ money and invested in a mixture of shares, bonds, property and cash.

The fund is managed by a professional investment manager, with the cost of the ongoing management of the investment being deducted from the fund. What is left over (the profit) is available to be paid to the with-profits investors.

You get your share of profits in the form of annual bonuses added to your policy. The company usually tries to avoid big changes in the size of the bonuses from one year to the next. It does this by holding back some of the profits from good years to boost the profits in bad years – this process is called ‘smoothing’.

You may also receive a ‘terminal bonus’ when your policy matures.

Wrap Account (sometimes known as a Platform)

Wrap Accounts help provide a holistic approach to financial planning. A wide range of various investments are held with one administrator with one central point of contact. The account is relatively easy to administer and usually internet based; paperwork is therefore kept to a minimum. Depending on individual circumstances, Wrap Accounts can have cost savings.

Annual Percentage Rate of Charge (APRC)

The information received by you includes details of the Annual Percentage Rate of Charge, commonly referred to as the APRC. This figure is calculated taking into account the interest payable on your mortgage, together with any additional charges, for example, arrangement fees, mortgage indemnity fees, legal or valuation costs incurred by the lender. APRC is intended to make it simpler to compare different mortgage products on a like for like basis.

Disbursements

An amount in respect of ‘disbursements’ will appear on your legal account.  These are fees such as stamp duty, land registry charges and search fees.  If you require an explanation of these in advance, please request details from your solicitor.

Fixed Interest Rate

The term ‘fixed interest rate’ means that the interest rate is guaranteed to remain unchanged for a specified period.  Upon expiry of the fixed interest rate product period, the interest rate applicable to your mortgage will usually change to the variable rate prevailing at the time or, subject to the terms applied by the lender, to a new fixed rate.

Repayment (Capital and Interest) Mortgage

The capital and interest repayment method means that each monthly payment you make to the lender will contain an element of capital in addition to the interest payable on the loan.   The proportion of each will change throughout the period of the loan, the proportion of capital increasing with each monthly payment provided that the payments due are met in full and on time.  The majority of your monthly payment relates to interest in the early years and the capital amount outstanding will reduce only slightly in the early years.  If you keep up repayments throughout the life of the mortgage, it guarantees to repay your mortgage in full at the end of the term.

Stamp Duty Land Tax

Stamp Duty Land Tax (SDLT) is paid when property or land is purchased over a certain price in England and Northern Ireland.  The current SDLT threshold is £250,000 for residential properties. If the property price exceeds this threshold the SDLT rates will only apply to the part of the property price that falls within each band, similar to the structure of Income Tax. If buying a new residential property means that you will own more than one property you will usually have to pay an additional 3% on top of the ‘standard’ rate. We have shown the rates below:

*Additional property purchased for less than £40,000 will attract 0% tax. For purchases from £40,000 to £250,000 the SDLT rate will be 3% on full purchase price.

First-time buyers – no stamp duty land tax will be payable for first time buyers paying £425,000 or less for a residential property and only 5% on the portion from £425,001 to £625,000.  This relief also extends to first time buyers of shared ownership properties (first time buyers purchasing property for more than £650,000 will not be entitled to any relief and will pay SDLT at the normal rates).

Protection Advice

Accident Sickness and Unemployment Insurance (ASU)

This insurance will cover mortgage repayments (or sometimes only a percentage of the monthly repayments) if the borrower is unable to work due to accident, sickness or involuntary unemployment.  It is short-term – policies usually pay out for up to 12 months (or some for 24 months) or until the borrower returns to work, whichever happens first (the policy holder is expected to actively seek work and might be asked for evidence of doing so).  It also usually pays a cash lump sum if the borrower dies or becomes disabled during the policy.  Generally, because it only covers the mortgage payments, it will not provide extra money to cater for other vital day to day expenses like travel, food and clothing.

Reviewable Premiums

Premiums start off at a lower amount, but at each review period the premium is re-assessed (based on a number of factors) and normally there will be an option to either increase the premium or reduce the sum assured based on your age at each review.

Term Assurance

Term Assurance is designed to provide cash, either by lump sum or regular payment, in the event of death, or diagnosis of an insured critical illness (depending on what is covered by the policy) during a specified period of time (the term).

There are several types of term assurance, including level, decreasing, increasing, renewable, convertible, gift inter vivos and family income benefit.  Term assurance can be used to cover a variety of situations, including family and mortgage protection, business protection and inheritance tax planning.

It should be noted that all term insurance policies will cease, should no claim be made, at the end of their respective terms without value. Term Assurances policies generally have no surrender value.

Waiver of Premium

This is used to continue the policy in the event of the policyholder becoming disabled or ill and unable to work for longer than (usually) six months.  Providing that you meet the conditions for making a successful claim the insurance company will pay the premiums for you until you are able to return to work or reach a set age.  You may be able to add this to your policy at an additional cost (subject to underwriting).

Actuarial Reduction

An actuarial reduction refers to the actuarial adjustment/reduction that can be made to retirement benefits when a member retires before their normal pension age/scheme retirement age.  The actuarial reduction takes into consideration the additional years the member is expected to receive benefits, having taken benefits early.

Annual Allowance (Limits and Charge)

This is the amount up to which an individual’s contributions can benefit from tax relief each tax year without incurring an annual allowance charge. If the Annual Allowance is exceeded, you need to declare the extra pension savings and pay the annual allowance charge through Self-Assessment. The Annual Allowance test does not apply in the tax year that the individual dies, or satisfies the ‘severe ill-health condition’. The current Annual Allowance is £40,000, however in certain circumstances it can be reduced to £4,000 by the tapered annual allowance where an individual’s ‘threshold’ and ‘adjusted’ income is greater than £200,000 and £240,000. The Annual Allowance can also be reduced to £4,000 for individuals who have accessed their pensions on a flexible basis. This is to prevent individuals from abusing the new pension flexibilities to avoid tax on their earnings or recycle their pension savings (See Money Purchase Annual Allowance). Please speak to your Financial Adviser should you require more information.

Tax relief on member contributions is limited to the higher of £3,600 or 100% of earnings, although the annual allowance does place a limit on the amount of tax relief a member can receive. Tax relief on employer contributions is in theory uncapped, however the local inspector of taxes must be satisfied that the contribution meets the ‘wholly and exclusively’ rules. Yearly pension savings above the allowance are taxable at your marginal rate whether made by you and/or your employer. It is possible to carry-forward any ‘unused’ Annual Allowance from up to three previous tax years to offset against any pension savings amount in excess of the Annual Allowance before a tax charge applies but only if you were a member of a registered pension scheme at some point in the tax year that the unused Annual Allowance is being carried forward from.

Annual Management Charge (AMC)

Fund Managers apply an Annual Management Charge (AMC) which is deducted directly from the fund to cover on-going management services.  It excludes costs such as fund administration services and custodian charges which form part of the Total Expense Ratio (TER).

Auto Enrolment

To encourage workers to start building up retirement benefits, the Government introduced pension reforms through the Pensions Act 2008 that requires all employers to offer qualifying workplace pension schemes and to automatically enrol all eligible workers into their scheme by the Company’s ‘staging date’.  These reforms have become known as ‘auto enrolment’.  Since February 2018, all employers must provide a workplace pension scheme.  Both employers and employees must make pension contributions.

If you are an eligible worker, who does not want to join your employer’s workplace pension scheme, you can opt out of the scheme after you have been automatically enrolled.  If you opt out within one month of your employer adding you to the scheme, you will get back any money you have already paid in.  Your employer will then automatically re-enrol you in the scheme every 3 years.  You can leave the scheme again, but only once you have been re-enrolled.

Benefit Crystallisation Event

A Crystallisation Event occurs whenever any sort of retirement benefit is paid and/or when a lump sum is paid on death before retirement.  Such events would include taking a tax-free lump sum and starting withdrawals from your pension.  Upon each benefit crystallisation event, a check must be made against your Lifetime Allowance to see if a Lifetime Allowance Charge has to be deducted.

Capital Protection (or Value Protection) Option

Capital protected annuities ensure that any unused funds are paid as a lump sum to the annuitant’s estate or beneficiaries when the annuitant dies.  The payment equals the price of the annuity minus the amount the annuity has paid out so far.  If death occurs after age 75 the payment is taxable at the marginal income tax rate of the individual.

Capped Drawdown Pension

This was a type of Drawdown Pension, available from age 55, with limits on what could be withdrawn.  Capped Drawdown Pensions are no longer available to new customer’s, however existing Capped Drawdown customers can convert to a Flexi-access Drawdown Pension.  See Flexi-access Drawdown.  Alternatively, you can keep your Capped Drawdown Pension, and it will continue to be subject to a maximum limit on what you can take out each year.  The capped drawdown limit is 150% of an equivalent annuity income.

Cash Equivalent Transfer Value (CETV)

A Cash Equivalent Transfer Value (CETV) represents the notional value of pension rights accrued in the pension scheme.  The CETV is calculated by the schemes actuaries and includes assumptions about the future course of events affecting the scheme and member’s benefits.

Closed Funds

These are funds that are not accepting new investment monies.  Funds can close for many reasons.  A company may close a fund because it is having some sort of financial difficulty or a fund might close when one insurance company takes over another company.  Some funds that have closed to new business have performed better than open funds, while others have performed worse.

Contracting Out

Prior to the 6th April 2012 some pension schemes were set up to provide a pension which replaced all, or part, of the earnings-related part of the state pension.  When an individual joined one of these Defined Contribution Pension schemes, they were said to be ‘contracted out’ and gave up their entitlement to the earnings-related state pension at state pension age.  Instead the Inland Revenue paid a rebate of their National Insurance Contribution into their own private pension arrangement.  Contracting out through Defined Contribution Pension schemes stopped with effect from 6th April 2012.  After this date, individuals were automatically contracted back into the state pension.

Conventional Lifetime Annuity

A Conventional Lifetime Annuity is an income bought using a pension fund (normally after deduction of any tax-free lump sum which you may be eligible to receive).  Income payments are not subject to investment or mortality risks.  The level of payment is dependent upon various factors for example the clients age, annuity rate, size of fund and options selected.

Defined Contribution Pension (Or Money Purchase)

With a Defined Contribution pension, you build up a pot of money that can be used to provide an income in retirement.  Unlike Defined Benefit pensions, which promise a specific income, the income you might get from a Defined Contribution pension depends on factors including the amount you pay in, the fund’s investment performance and the choices you make at retirement.  Examples include Personal Pensions, Stakeholder Pensions and Self Invested Pensions.

Defined Benefit Pension

A Defined Benefit pension scheme is one where the amount paid to you is set using a formula based on how many years you’ve worked (years’ service in the scheme), accrual rate and the pensionable salary you’ve earned, rather than the value of your investments.

Dependant

Death benefits may be paid to a dependant. The definition of a dependant is set out under the scheme rules but generally would include: your spouse or a civil partner; any children that are still dependant e.g. in full-time education and or under the age of 23, or anyone else who in the opinion of the Trustees were financially dependent on the scheme member when they were alive.

Nominee

A nominee is any individual other than the dependant, nominated by the member to receive benefits from a pension plan upon the member’s death.

Successor

A successor is an individual nominated by a dependant or a nominee to continue to receive a dependants or nominees flexi-access drawdown pension.

Discretionary Fund Management (DFM)

A Discretionary Managed Portfolio is managed on a client’s behalf according to agreed investment objectives and risk criteria.  Within the agreed criteria, the Manager has absolute discretion to make changes to the assets held within the portfolio – increase, reduce or remove existing assets – and to buy new assets.  DFM portfolios can be more expensive than other methods of holding assets but can be attractive to clients who wish to have a professional management service that is more personalised.

Early Withdrawal Charges

An early withdrawal charge is a penalty that will be applied to an investor for withdrawing funds from an investment earlier than is expected, for example, prior to the maturity date.

Escalation of Defined Benefit Pensions in payment

Please refer to ‘Revaluation of deferred Defined Benefit Pensions’ below.

Flexi-access Drawdown (FAD)

All new Drawdown Pensions set up on or after 6 April 2015 are known as Flexi-access Drawdown.  There is no cap on the amount that can be withdrawn each year and no minimum income requirement.  Withdrawals (in excess of any amount that is deemed to be tax-free, generally 25%- also known as tax-free cash or PCLS) are subject to income tax.

Flexible Drawdown Pension

This was a type of Drawdown Pension that has since been replaced by Flexi-access Drawdown.  Under Flexible Drawdown Pensions (not to be confused with Flexi-access Drawdown Pensions) individuals could draw down unlimited amounts from their pension pots subject to income tax at their marginal rate, providing they could demonstrate that they had a minimum sufficient income.

Fund Supermarket

A Fund Supermarket is an organisation that can provide a convenient way of investing in collective investment funds.  The ‘supermarket’ term reflects the way in which they operate; a variety of funds can be purchased from a number of different management groups in one online place.

GAD – Government Actuary’s Department

GAD produces tables of annuity rates, on behalf of HM Revenue & Customs, which are used to calculate the maximum income which may be withdrawn from capped drawdown pension plans.

Guaranteed Annuity Rates

In simple terms, this is a promise made by a pension provider to pay a minimum retirement income.  Generally speaking, it allows you to convert your fund into income when you retire but at a predetermined fixed rate, and as this promise is written into your pension contract, it applies irrespective of what the current annuity rates are at retirement.

Guaranteed Minimum Pension (GMP)

The Guaranteed Minimum Pension (GMP) is the minimum pension that a United Kingdom occupational pension scheme has to provide for those employees who were contracted out of the State Earnings Related Pension Scheme (SERPS) between 6 April 1978 and 5 April 1997.  The amount is said to be ‘broadly equivalent’ to the amount the member would have received had they not been contracted out.  SERPS enabled employees (but not the self-employed) to top up the basic pension they receive on retirement with additional pension payments based on their earnings.

Guarantee Period

If you die during an annuity guarantee payment period, the life office will normally continue to pay your income to your estate, or to someone named in your Will, until the guarantee ends.  So, for example if you had a 10-year guarantee and you were to die in year 2 of receiving your pension, this will be guaranteed to continue for another 8 years.

Impaired Life Annuity

Impaired Life (or enhanced) annuities are a type of annuity that gives the holder a higher income, due to a lifestyle or medical reason that shortens life expectancy.  For example; this may include habits such as smoking or drinking, medical history or lifestyle.

Investment Linked Annuities

You may use the fund to purchase an Investment Linked Annuity, either on a with-profits or unit-linked basis. This is designed to provide a higher income in future but with the risk of a variable or even falling income.  Investment Linked Annuities are similar to conventional lifetime annuities, except that any income payable is dependent on the performance of the underlying fund(s).

If you opt for a unit-linked annuity, you will usually have to choose from a range of different funds containing different investment assets.  All investment-linked annuities have a guaranteed minimum income floor.  This is the lowest level to which your income could fall in times of poor stock market performance.

The income from a with-profits annuity results from the bonuses added each year and these are based on the underlying investments of the with-profits fund.  An anticipated (or assumed) future bonus rate (ABR) is selected at outset.  The higher the ABR the greater the initial income, however if the actual bonuses added to the ‘with-profits’ fund does not equal the ABR then the amount of pension payable will decrease.  Many with-profits annuities include a minimum guaranteed level of pension.

Lifetime Allowance

The Lifetime Allowance is the total capital value of all your pension arrangements which you can build up without paying extra tax. This does not include any state retirement pension, state pension credit or any spouse’s, civil partner’s or dependant’s pension you may be entitled to. The Lifetime Allowance is expressed as a capital value and is set for each tax year. If the value of all your pension benefits when you draw them exceeds your Lifetime Allowance (or any protection if you have opted for it), a lifetime allowance tax charge will be made against the excess. The current Lifetime Allowance is £1,073,100.00.

Lifetime Allowance Charge

This is a tax charge made on funds that exceed your Lifetime Allowance.  The charge will vary by circumstances, for example the charge is 55% if the excess funds are taken as a cash lump sum and 25% if the excess funds are used to provide pension income benefits.

Lifetime Allowance Protections

There are numerous protections for pension benefits from a lifetime allowance charge.  Examples include Primary Protection, Enhanced Protection, Fixed Protection and Individual Protection, the amount and type of protection depends on various conditions being met.  Calculation of Lifetime Allowance Protections is complex and will require detailed personalised advice.

Money and Pensions Service (MaPS)

The Money and Pensions Service (MaPS) is a government initiative providing free and impartial pension guidance, debt advice and money guidance to members of the public.  It is funded by levies on both the financial services industry and pension schemes.  They also specifically support those over 50, approaching retirement, to help make decisions on their defined contributions pension pots through their ‘Pension Wise’ service.  Please note – this service will highlight the options available, but it will not give specific product or provider recommendations.  Only regulated financial advisers can provide advice, and there may be a cost for that advice.

Money Purchase Annual Allowance (MPAA)

Where individuals access money purchase pensions on a Flexi-Access Drawdown (accessing a PCLS and income) or an Uncrystallised Funds Pension Lump Sum basis, they are now subject to a permanent reduced annual allowance of £4,000 known as the ‘Money Purchase Annual Allowance’, reducing the amount they, an employer or third party can continue to contribute to their pension without incurring a MPAA tax charge.  Under a Flexi-Access Drawdown pension only a tax-free cash/PCLS payment may be paid without triggering the MPAA.

National Employment Savings Trust (NEST)

NEST is a government led simple, low-cost pension scheme that aims to increase the number of people saving for retirement.  Since February 2018, all employers must automatically enrol all of their qualifying staff in a workplace pension scheme or in NEST.  Minimum employer and employee contribution levels will apply.  NEST members have one retirement pot which they can carry on paying into throughout their working life.  It offers only a limited range of investment funds.  Transfers in and out of NEST are allowed and staff can opt out of the scheme should they so wish.  NEST is also open to the self-employed.

Nominee

Please refer to ‘Dependant’ above.

Ongoing Charges Figure (OCF)

The Ongoing Charges Figure (OCF) represents the ongoing costs involved in running an investment fund. It includes charges such as the Annual Management Charge (AMC), administration fees, transaction fees, regulatory fees and other expenses. The OCF is always quoted as a single percentage figure. For example, if a fund has an OCF of 0.50%, then for every £1,000.00 you invest, £50.00 goes towards the costs of running the fund.

Open Market Option

This is your option to shop around for the best annuity rates available on the market when you retire.  Annuity rates differ between annuity companies; therefore, you can increase your pension income by purchasing your annuity from the company which pays the most income.  See Impaired Life Annuity.

Pension Input Periods (PIP)

A pension input period (PIP) is the time period used to measure benefits accrued or contributions paid for testing against the Annual Allowance. See Annual Allowance.  Pension Input Periods now run in line with tax years.

Pension Protection Fund

The Pension Protection Fund (PPF) was set up by the Government and came into effect on 6 April 2005.  It was established to pay compensation to members of eligible defined benefit and hybrid pension schemes, where there is a qualifying insolvency event in relation to the employer, and where there are insufficient assets in the pension scheme to cover the PPF level of compensation.  The scheme must first be assessed before it can be accepted into the PPF.  Where accepted, the PPF takes over the scheme and is responsible for paying pension benefits, subject to certain limits.

The PPF is not funded by the Government.  The PPF takes on the assets of scheme and will recover whatever they can from the insolvent employer(s).  In addition, a compulsory levy is collected from all eligible schemes.

In most cases it is not possible to transfer out of the Pension Protection Fund whilst in the assessment period or once accepted.  Early retirement is possible, subject to an actuarial reduction and an element of tax-free cash and pension can be drawn.  However the tax-free cash cannot be drawn in isolation.   It should be noted that the management body of the PPF have the right to reduce the level of compensation being paid from the scheme should the PPF itself suffer financial hardship.  The government does not underwrite the scheme.

Personal Pension

This is a private (defined contribution) pension, not linked to an employer.  Within a Personal Pension you can pay either a regular amount or a lump sum to the pension provider who will invest it on your behalf.  Personal Pensions allow tax relief on contributions as set out by the government.

Phased Retirement

You can arrange most personal pensions as a single plan, or as a cluster of many separate plans, sometimes called ‘segments’.  You can use these segments to buy a Lifetime Annuity at different times or access your Drawdown Pension in phases.  This process is called Phased Retirement.

Premium Protection

This is a separate insurance plan which can be set up, at an additional premium, alongside a pension plan.  It means that pension contributions (up to a predefined limit) will be paid in the event of the policyholder being unable to work due to illness or injury for a defined period (generally at least 6 months).  If you have chosen to have a premium protection policy, please be careful to read the Key Features carefully, in particular the definition of a claim.  Alternatively, if you require more information about premium protection insurance, please contact your adviser.

Reduction in Yield (RIY)

The term ‘reduction in yield’ – or RIY – is a way of expressing the impact of all charges and deductions on a policy over a period of time.  It sets out the reduction in the yield or return that would otherwise have been provided if the policy carried no charges at all.  The RIY has the effect of reducing the growth rate shown in your illustration which means lower returns for you.  Examining the RIY is an excellent way of judging whether a policy is good value.

Revaluation of deferred Defined Benefit Pensions

To prevent the value of preserved benefits falling in real value over time, revaluation of preserved pension benefits was introduced by the Social Security Act 1985 and there are various statutory methods that apply.

Pension scheme(s) may offer more favourable revaluation rates than the statutory minimum.

Escalation of Defined Benefit Pensions in payment
There are various statutory methods that apply.  Pension scheme(s) may offer more favourable escalation rates than the statutory minimum.

State Pension

The State Pension is a regular payment from the government that you can claim once you reach State Pension Age.  To receive it you must have paid or been credited with sufficient National Insurance contributions. You can still get a State Pension if you have other income such a personal pension or a workplace pension.

You qualify for State Pension based on the number of qualifying years you paid National Insurance contributions (NICs). You pay NICs from age 16 until you reach State Pension Age.  Once in payment, your State Pension increases every year by whichever is the highest of:

  • Earnings – the average percentage growth in wages (in Great Britain)
  • Prices – the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI)
  • 5%

State pension is a taxable pension income. You will therefore pay tax on any pension income above your tax-free Personal Allowance.  The rates of Income Tax you pay depend on how much of your taxable income is above your Personal Allowance in any given tax year.

Self-Invested Personal Pension (SIPP)

This is a private (defined contribution) pension, not linked to an employer.  This type of pension allows you to make your own investment decisions and offers more investment choice, for example direct investment in commercial property.  Although you receive similar tax benefits to personal pensions, SIPPs normally have higher charges.

Short-term Annuities

Short-term Annuities are annuities purchased with drawdown funds.  They allow you to use part of your pension fund to buy an annuity lasting up to five years while leaving the rest of your pension fund invested.  You can choose your annuity options in much the same way as conventional lifetime annuities.  In the meantime, the remainder of your fund continues to be invested.

Stakeholder Pension Plans (SHP)

Stakeholder Pension Plans (SHP) are a type of personal pension. They must satisfy a number of minimum government standards to ensure that they offer value for money and flexibility and are available to most individuals, even those not working but able to afford contributions.  Providers of pension funds usually charge for managing your money.  Within a SHP contract, the annual management charge (AMC) cannot exceed 1.5% per annum of the fund value within the first ten years.  After year ten the AMC limit falls to 1% per annum.

Successor

Please refer to ‘Dependant’ above.

Tax-Free Cash or Pension Commencement Lump Sum (PCLS)

This is a lump sum benefit paid to a member of a registered pension scheme which is tax-free.

Total Expense Ratio (TER)

The Total Expense Ratio (TER) provides investors with a clearer picture of the total annual costs involved in running an investment fund.  The TER consists principally of the manager’s annual charge, but also includes the costs for other services paid for by the fund, such as the fees paid to the trustee (or depositary), custodian, auditors and registrar.  Collectively, these fees are known as the ‘additional costs’.  TERs are typically between 1% and 2% (this figure may be in excess of 2% when investing in Fund of Funds).  It is likely that large funds will have lower TERs than small funds, that funds investing in overseas markets have higher TERs than UK funds and that new funds will show higher costs than old funds.  However, the principal difference in TERs is whether the fund manager has a higher or lower annual charge.

‘Trivial Commutation’ or ‘Trivial Lump Sum’

If you are 55 and the cash equivalent value of all your pension pots added together is under £30,000 you can take the whole of your pension as cash.  Alternatively, if you have small pension pots of £10,000 or less you can take up to three of these as a cash lump sum.  You can do this even if your total pension savings exceed £30,000.  Either way, you are entitled to receive a quarter (25%) of each pot’s value tax-free.  You then pay tax at your highest tax rates on the remainder.

Uncrystallised Funds Pension Lump Sum (UFPLS)

This is a lump sum which will be payable from funds which are ‘uncrystallised’, that is, have not yet been annuitised or designated to a flexi-access drawdown fund or a drawdown fund.  The creation of the UFPLS provides an additional option for flexible access to a pension.  There will be a 25% tax-free element and the balance will be taxed at the individual’s marginal rate of tax.  Individuals can take their entire money purchase pot as an UFPLS in one go, or take a series of smaller UFPLSs, each of which will have a 25% tax-free element.  Conditions apply and the individual must be over age 55 (or eligible for early retirement due to ill-health) and have available Lifetime Allowance.

Unit Price Adjustments

An investment fund may hold back some of the profits in good years to boost the profits in bad years – this process is called ‘smoothing’.  To achieve this, the unit price value of a fund may be amended up or down to ensure not too much or too little profit is being returned when the shorter- term performance of a fund differs too much from its expected Growth Rate.

With-Profits

The money you put into a with profits fund is pooled with other investors’ money and invested in a mixture of shares, bonds, property and cash.

The fund is managed by a professional investment manager, with the cost of the ongoing management of the investment being deducted from the fund.  What is left over (the profit) is available to be paid to the with-profits investors.

You get your share of profits in the form of annual bonuses added to your policy.  The company usually tries to avoid big changes in the size of the bonuses from one year to the next.  It does this by holding back some of the profits from good years to boost the profits in bad years – this process is called ‘smoothing’.

You may also receive a ‘terminal bonus’ when your policy matures.

Workplace Pension

See Auto Enrolment and National Employment Savings Trust (NEST).

Wrap Account

Wrap accounts help provide a holistic approach to financial planning.  A wide range of various investments are held with one administrator with one central point of contact.  The account is relatively easy to administer and usually internet based, paperwork is therefore kept to a minimum.  Depending on individual circumstances, wrap accounts can have cost savings.

Accident Sickness and Unemployment Insurance (ASU)

This insurance will cover mortgage repayments (or sometimes only a percentage of the monthly repayments) if the borrower is unable to work due to accident, sickness or involuntary unemployment.  It is short-term – policies usually pay out for up to 12 months (or some for 24 months) or until the borrower returns to work, whichever happens first (the policy holder is expected to actively seek work and might be asked for evidence of doing so).  It also usually pays a cash lump sum if the borrower dies or becomes disabled during the policy.  Generally, because it only covers the mortgage payments, it will not provide extra money to cater for other vital day to day expenses like travel, food and clothing.

Definitions of Incapacity

You must take care to understand the definition of incapacity within your plan.  The definition that applies to you will have a significant effect on the amount you will have to pay and whether you can make a valid claim.

The definitions that insurance companies use can vary.  Typical descriptions used are ‘own occupation’, ‘any suited occupation’, ‘any occupation’, ‘activities of daily living’, ‘activities of daily working’ etc., although this is not a definitive list.

You should remember that, in general terms, the more specific the scope of the cover, the greater the cost.  For example, ‘own occupation’ cover is likely to be more expensive than ‘any occupation’ cover.  The flipside to this is that it is tougher to make a claim under ‘any occupation’ because of the wider definition.  However, the exact cost of cover will depend on a number of factors, including your age, sex, occupation and medical history.  Please ensure that you understand how this affects your plan.  If you are in any doubt, please discuss this with your adviser.

Income Protection Insurance

Income Protection Insurance provides cover in the event that the insured is unable to work, and therefore to earn, due to illness or injury.  The exact cost of cover will depend on the occupation of the policyholder, their age, the level of benefit and the period of time that elapses between when the insured becomes ill and when a claim is made.  The income continues until you are fit to return to work or the policy ends.

Private Medical Insurance (PMI)

PMI provides cover for the costs of private medical care including private hospital charges.  PMI is designed to meet some or all of the costs of private medical treatment of acute conditions, rather than chronic conditions.

Reviewable Premiums

Premiums start off at a lower amount, but at each review period the premium is re-assessed (based on a number of factors) and normally there will be an option to either increase the premium or reduce the sum assured based on your age at each review.

 Term Assurance

Term Assurance is designed to provide cash, either by lump sum or regular payment, in the event of death, or diagnosis of an insured critical illness (depending on what is covered by the policy) during a specified period of time (the term).

There are several types of term assurance, including level, decreasing, increasing, renewable, convertible, gift inter vivos and family income benefit.  Term assurance can be used to cover a variety of situations, including family and mortgage protection, business protection and inheritance tax planning.

It should be noted that all term insurance policies will cease, should no claim be made, at the end of their respective terms without value. Term Assurances policies generally have no surrender value.

Waiver of Premium

This is used to continue the policy in the event of the policyholder becoming disabled or ill and unable to work for longer than (usually) six months.  Providing that you meet the conditions for making a successful claim the insurance company will pay the premiums for you until you are able to return to work or reach a set age.  You may be able to add this to your policy at an additional cost (subject to underwriting).

Whole of Life

A Whole of Life policy will pay out on the death, or diagnosis of an insured critical illness (depending on what is covered by the policy) of the life / lives assured, whenever this occurs, provided that the policy is still in force.  Whole of Life insurance lasts throughout your life and usually costs substantially more than term assurance.  Premiums are payable either throughout life or sometimes until the life assured reaches a certain age (when premiums cease but life cover continues).

Unlike term policies, some Whole of Life policies have an investment element and may, over time, also have a surrender value.  It is unlikely however, that there would be any surrender value in the early years of any policy.  Some types of policy have reviews at which point the policy holder can choose to maintain the level of cover but with an increase in premium or reduce the level of cover.  The benefit payable will be either a lump sum or the value of the invested fund, whichever is higher.


About Us

Jones & Co

With Jones & Co, you can confidently plan your future.

Simply put, we believe that financial advice should be accessible to everyone, so we are fully committed to providing the very best service possible to you.

It really doesn’t matter what stage of life you are at or how old you are. Whether you are considering starting to contribute to your first pension or you want to explore the complexities of Inheritance Tax Planning, we are here for you.

In 2022 we had an ‘aha!’ moment and realised we wanted to offer more than just financial advice. We want to help you to create the future lifestyle that you have always dreamed of and make sure that you can afford to live your best life.

As such, we introduced Lifestyle Financial Planning to our range of services and we love seeing the impact this has on our clients’ lives.

Life can be unpredictable, but your finances don’t have to be. From big picture plans to the smallest snapshots in life, we will help you explore, and navigate your personal finances so you can confidently plan for the future.

Our Story

From Vicar Lane to Capital House.

Our story began in 2009 from a small office on Vicar Lane in Chesterfield. Having left his role as a Financial Advisor at a major high street bank, our managing director, Mark Jones, set up on his own firm to offer quality financial advice in an understandable and accessible way.

The business was a success and quickly grew. So, in 2013, Mark purchased The Gardeners Arms on Glumangate in Chesterfield. He went on to transform it into the welcoming office that it is today. We’re now cohort of expert advisors supported by a full Client Services Team and we have ambitious plans to continue the growth that Mark started all those years ago.

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Gardeners Arms, Glumangate
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We can’t wait to get started with you….

Our Office is open 9am-5pm Mon-Fri, however, we understand this might not fit, so if it’s an issue, we might just bend the rules for you!.

Once you’ve made your booking, you’ll receive a confirmation email. A member of our team will also contact you to confirm the appointment and have an initial conversation with you check if you have booked the right advisor and to make sure we are a great fit for you.

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Investment Solutions

Your Future

Tailored professional investment portfolios

Our commitment of service is to offer a free initial analysis of clients’ investments so that we can present clear and concise evidence if we believe a change is required.

This will include various reports to draw a comparison of charges, performance, and risk exposure. This then leads to further discussions around investment objectives along with a full appraisal of risk appetite, tolerance for risk, and capacity for loss so that your advisor will be able to confidently recommend the ideal investment solution for you.

We have access to sophisticated research software that enables us to filter providers, products, and funds to create the best investment structure for our wealth management clients.

Our Process

This is how we do it

Step 1

Discovery
Meeting

This will be our very first meeting.
Step 2

Interim
Meeting

This meeting is all about getting to know you.
Step 3

Presentation & Implementation

A detailed summary of our recommendations.
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Get In Touch

Investment Solutions

Our Financial advisors can offer unbiased guidance around money matters, personal finances, and savings and investments.

Our professional advisors have the ability to create plans to meet specific goals and objectives, with the aim of improving financial stability and wellbeing. Below you’ll find a list of services that we can help with:

Have You Ever Asked Yourself…

When can I afford to retire? How much do I need to last me for the rest of my life? When can I retire to spend more time with my loved ones? How much can I spend throughout my life?

If so, with the use of some very sophisticated cash flow modelling software our Lifestyle Financial Planners will be able to help you answer these questions and more!

We feel that anyone can benefit from this service. Let us take you on a journey of self discovery and help you to make some very important life decisions.

  • Stocks & Share ISAs
  • Cash ISAS
  • Investment Bonds
  • Collective Investments
  • Unit Trusts
  • OEICs
  • Venture Capital Trusts (VCTs)
  • Enterprise Investment Scheme
  • AIM Portfolios
  • Discretionary Fund Management
  • Capped Drawdown
  • Fixed Term Annuities
  • Flexible Access Drawdown
  • Group Personal Pensions
  • Workplace Pensions
  • Hybrid Arrangements
  • Lifetime Annuities
  • Enhanced Life/Impaired Life Annuities
  • Open Market Annuities
  • Pension Switch Advice
  • Occupational Pensions
  • Pensions Review
  • SIPP Pensions
  • Stakeholder Pensions
  • UFPLS (Uncrystallised Funds Pension Lump Sum)
  • Income Tax
  • Capital Gains Tax
  • Inheritance Tax
  • Critical Illness
  • Family Income Benefit
  • Income Protection
  • Children's Critical Illness
  • Level Term Assurance
  • Decrease Term Assurance
  • Whole of Life
  • Business Shareholder Protection
  • Key Person Insurance
  • Shareholder Protection
  • Group Income Protection
  • Tax Savings Protection Plans
  • Bare Trust
  • Discounted Gift Trust
  • Cross Option Agreements
  • Automatic Accrual
  • Flexible Trusts

Contact Us

Let us help you explore, plan and navigate your financial future.

We just need your contact details so we can connect you to a Financial Advisor. We will only share this with our team and nobody else.

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      Free Guides

      Browse through our free guides curated by our expert team.

      Do you have questions about a specific area of your finances? One of our guides may be able to answer those burning questions. These guides have been written with you in mind.

      Successes

      Voted the Best IFAFirm in Derbyshire.


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      Our Blog

      Mark Jones of Jones and Co

      Marathon Mark!

      Our intrepid managing director and triathlete, Mark Jones, is finishing off his…


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      Cash may not be king

      Choosing what to do with your pension is a big decision.


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      As the rising cost of living, energy prices and the ongoing war in Ukraine…


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      Mortgages

      Mortgages

      It’s important to getit right.

      At Jones & Co we know that many people want confidence in the complex world of mortgages.

      We understand that achieving your homeownership goals requires professional guidance, and that’s where we come in.

      The journey to secure the right mortgage can be daunting, leaving you confused about where to start and how to achieve your housing ambitions. At Jones & Co, we believe that everyone deserves the keys to their ideal home, and we are here to help you make that dream a reality.

      a young couple celebrate getting their first home

      We provide mortgage advice that is as individual as you are.

      Whether you are a first-time buyer, looking to remortgage or want to grow your buy-to-let portfolio, our mortgage advisor can help guide you on your journey to financial success.

      A good mortgage broker understands that everyone’s situation is unique. This is why our experienced advisors work with you to understand your needs and set a clear path to help achieve your home-owning financial goals. We cater to a diverse range of needs, including assisting the self-employed starting with just one year’s worth of accounts right through to looking at later life lending solutions for the over 55’s.

      Most people want to find the best mortgage deals, as independent advisors, we can search over fifty lenders from across the marketplace to secure the best mortgage arrangement, saving our clients thousands over the lifetime of your mortgage.

      No matter what stage of life you’re in or what your financial goals may be, Jones & Co’s independent mortgage advisor is dedicated to helping you navigate the world of mortgages and property investment with confidence.

      If you prefer, our mortgage advisor can offer online appointments ensuring you access expert advice from the comfort of your own home or office. So, if you’re searching ‘mortgage advisor near me’, you’ve just found what you’re looking for!

      Cheerful young family
      Mortgages

      Mortgage &Protection Advice.

      Buying a house is one of the most important purchases you will make in a lifetime and buying your first home can be even more daunting, therefore getting the right mortgage advice at this stage is of paramount importance.

      So, if you have just started looking for your dream home, our team of Advisors can guide you through the whole process. Let us do all the hard work for you allowing you to concentrate on finding your new home.

      Estate Agents will often want to see that your mortgage has been approved before accepting an offer. Let us put you ahead of the competition by having an Agreement in Principle (AIP). Our team of advisors will help you from your initial enquiry through to getting the keys for your new home.

      Is your current mortgage deal coming to an end? With the complexities of the mortgage market, deals are constantly changing so your existing lender may not provide the best rate for your current circumstances.

      Find out when it is the right time to switch your mortgage and if remortgaging can save you some money. We’ll search the market on your behalf to find the right mortgage product for you. We’ll also look at what your current lender has to offer and, if it makes sense to stay with your current lender, we can still help.

      You might want to raise capital against your property, carry out home improvements or simply reduce your monthly outgoings by taking advantage of more competitive mortgage rates. If remortgaging is your priority, we’ll look after your application for you from start to finish.

      Whether you are new to investing in property or an experienced landlord, choosing the right buy-to-let mortgage is essential. Our experienced advisors have the knowledge and expertise to guide you through the whole process.

      Buy-to-let mortgages can also be arranged in a limited company’s name, and this may prove to be more tax advantageous.

      We have a range of mortgages available for those over 55 and approaching, or in, retirement. Retirement Interest Only (RIO) is an interest only mortgage that doesn’t have a fixed end date to repay the balance. The balance is repayable upon entering into long-term care or death. It is an option for those who wish to release equity whilst protecting the remaining equity and leave an inheritance for loved ones.

      • Building & Contents
      • Critical Illness cover
      • Income Protection
      • Accident & Sickness
      • Landlord protection
      • Life Insurance
      • Unemployment cover

      The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages. As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.

      • Stocks & Shares ISAs
      • Cash ISAs
      • Investment Bonds
      • Collective Investments
      • Unit Trusts,
      • OEIC
      • Venture Capital Trusts (VCT)
      • Enterprise Investment Scheme (EIS)
      • AIM Portfolios
      • Discretionary Fund Management
      • Capped Drawdown
      • Fixed Term Annuities
      • Flexible Access Drawdown
      • Group Personal Pensions
      • Workplace Pensions
      • Hybrid arrangements
      • Lifetime Annuities
      • Enhanced Life/Impaired Life Annuities
      • Open Market Annuities
      • Pension Switch Advice
      • Occupational Pensions
      • Pensions Review
      • SIPP Pensions
      • Stakeholder Pensions
      • UFPLS (Uncrystallised Funds Pension Lump Sum)
      • Income Tax
      • Capital Gains Tax
      • Inheritance Tax
      • Critical Illness Cover
      • Family Income Benefit
      • Children's Critical Illness Cover
      • Income Protection
      • Whole of Life
      • Level Term Assurance
      • Decreasing Term Assurance
      • Business Shareholder Protection
      • Key Person Insurance
      • Relevant Life Policies
      • Shareholder Protection
      • Tax Savings Protection Plans
      • Group Income Protection
      • Bare Trust
      • Discounted Gift Trust
      • Cross Option Agreements
      • Flexible Trusts
      • Automatic Accrual
      Our Process

      We make it simple

      Step 1

      Initial
      Meeting

      Knowing exactly what you’re looking to achieve.
      Step 2

      Agreement in
      Principle

      Find the right mortgage for your needs.
      Step 3

      We Submit Your Application.

      We’ll submit and process your application for you.
      Step 4

      Your Offer
      Letter

      We’ll progress your application.
      Step 5

      Keeping
      you safe

      We will review protection for you.
      Step 6

      Your
      Future

      We offer regular reviews.
      FIND OUT MORE

      Mortgage & Protection

      Mortgage Advice

      Anything to do with mortgages and property can seem overwhelming, but don’t let the complexity put you off.

      Whether you’re looking to buy your first home, borrow some extra money to carry out some renovations or you want to find the next best mortgage rate, our expert mortgage team can help. We’re confident that we’ll have something for you, no matter what situation you’re in.

      Buying a house is one of the most important purchases you will make in a lifetime and buying your first home can be even more daunting, therefore getting the right mortgage advice at this stage is of paramount importance.

      So, if you have just started looking for your dream home, our team of Advisors can guide you through the whole process. Let us do all the hard work for you, allowing you to concentrate on finding your new home.

      Estate Agents will often want to see that your mortgage has been approved before accepting an offer. Let us put you ahead of the competition by having an Agreement in Principle (AIP). Our team of advisors will help you from your initial enquiry through to getting the keys for your new home.

      Is your current mortgage deal coming to an end? With the complexities of the mortgage market, deals are constantly changing so your existing lender may not provide the best rate for your current circumstances.

      Find out when it is the right time to switch your mortgage and if remortgaging can save you some money. We’ll search the market on your behalf to find the right mortgage product for you. We’ll also look at what your current lender has to offer and, if it makes sense to stay with your current lender, we can still help.

      You might want to raise capital against your property, carry out home improvements or simply reduce your monthly outgoings by taking advantage of more competitive mortgage rates. If remortgaging is your priority, we’ll look after your application for you from start to finish.

      Whether you are new to investing in property or an experienced landlord, choosing the right buy-to-let mortgage is essential. Our experienced advisors have the knowledge and expertise to guide you through the whole process.

      Buy-to-let mortgages can also be arranged in a limited company’s name, and this may prove to be more tax advantageous.

      We have a range of mortgages available for those over 55 and approaching, or in, retirement. Retirement Interest Only (RIO) is an interest only mortgage that doesn’t have a fixed end date to repay the balance. The balance is repayable upon entering into long-term care or death. It is an option for those who wish to release equity whilst protecting the remaining equity and leave an inheritance for loved ones.

      • Building & Contents
      • Critical Illness Cover
      • Income Protection
      • Accident
      • Landlord Protection
      • Life Insurance
      • Sickness
      • Unemployment Cover

      Contact Us

      Let us help you explore, plan and navigate your financial future.

      We just need your contact details so we can connect you to our mortgage expert. We will only share this with our team and nobody else.

        Your property may be repossessed if you do not keep up repayments on your mortgage. *Commercial and some buy-to-let mortgages are not regulated by the Financial Conduct Authority.

        Start Building Your Financial Future Today.

        Lets connect you with our mortgage expert by filling out the form below.

          Free Guides

          Browse through our free guides curated by our expert team.

          Do you have questions about a specific area of your finances? One of our guides may be able to answer those burning questions. These guides have been written with you in mind.

          Successes

          Voted the Best IFAFirm in Derbyshire.


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          Awards

          Successes

          Voted the Best IFAFirm in Derbyshire.

          For many years, the team has been voted Best Independent Financial Advice Firm in Derbyshire. This achievement features in the Sunday Times. We also consistently rank in the Top 100 Firms in the UK on the independent consumer site, ‘Vouchedfor’.

          This is all down to the reviews our valued clients write about the advisor who has assisted them and it is something that makes us all very proud. Plus, it motivates us to always enhance the service we offer. You can find us on ‘Unbiased’ too, another independent consumer site available online.


          Lifestyle Financial Planners logo

          Specialist Outsourced Services

          Outsourced Services

          We offer a number of Specialist Outsourced Services.

          We offer a number of Specialist Outsourced Services using authorised industry professionals who we know and trust because we use them ourselves. We are always open to forming professional relationships with like-minded organisations with one objective in mind: offering the very best overall service to our clients.

          Everything You Need

          They’re on hand to help whenever required.

          We want to offer a streamlined, efficient end-to-end service. Here is a list of professionals that we are able to connect you with if required:

          • Specialist trusts
          • Corporate Investments
          • Defined Benefit Pensions
          • Final Salary Pension Transfers
          • Accountancy
          • Legal Services
          • Auto Enrolment
          • QROPS (overseas pension transfers/advice)
          • SSAS
          • Equity Release
          • Private Medical Insurance
          • Professional Will Writing
          • Lasting Powers of Attorney
          Outsourced Services

          IndustryProfessional?

          We are always open to forging professional relationships with like-minded organisations with one objective in mind: offering the truly best overall service to our clients.

          If you believe there may be some synergy in working together, we would love to hear from you.

          Get In Touch

          Contact Us

          The first step is to give us a call or drop us an email to make an appointment to meet with one of our Independent Financial Advisors. Our opening hours are 9am to 5pm Monday to Friday.

          Give us a call. Our opening hours are 9am to 5pm Monday to Friday.

          Call — 01246 550 521

          In order to match you with the right advisor, please complete the form below.

          Fill Out Form

          Click the button below to book an appointment with our online booking system.

          CLICK HERE TO BOOK

          Get In Touch

          Contact Us

          Our Financial advisors can offer unbiased guidance around money matters, personal finances, and savings and investments.

          Our professional advisors have the ability to create plans to meet specific goals and objectives, with the aim of improving financial stability and wellbeing. Below you’ll find a list of services that we can help with:

          Have You Ever Asked Yourself…

          When can I afford to retire? How much do I need to last me for the rest of my life? When can I retire to spend more time with my loved ones? How much can I spend throughout my life?

          If so, with the use of some very sophisticated cash flow modelling software our Lifestyle Financial Planners will be able to help you answer these questions and more!

          We feel that anyone can benefit from this service. Let us take you on a journey of self discovery and help you to make some very important life decisions.

          • Stocks & Share ISAs
          • Cash ISAS
          • Investment Bonds
          • Collective Investments
          • Unit Trusts
          • OEICs
          • Venture Capital Trusts (VCTs)
          • Enterprise Investment Scheme
          • AIM Portfolios
          • Discretionary Fund Management
          • Capped Drawdown
          • Fixed Term Annuities
          • Flexible Access Drawdown
          • Group Personal Pensions
          • Workplace Pensions
          • Hybrid Arrangements
          • Lifetime Annuities
          • Enhanced Life/Impaired Life Annuities
          • Open Market Annuities
          • Pension Switch Advice
          • Occupational Pensions
          • Pensions Review
          • SIPP Pensions
          • Stakeholder Pensions
          • UFPLS (Uncrystallised Funds Pension Lump Sum)
          • Income Tax
          • Capital Gains Tax
          • Inheritance Tax
          • Critical Illness
          • Family Income Benefit
          • Income Protection
          • Children's Critical Illness
          • Level Term Assurance
          • Decrease Term Assurance
          • Whole of Life
          • Business Shareholder Protection
          • Key Person Insurance
          • Shareholder Protection
          • Group Income Protection
          • Tax Savings Protection Plans
          • Bare Trust
          • Discounted Gift Trust
          • Cross Option Agreements
          • Automatic Accrual
          • Flexible Trusts

          Contact Us

          Let us help you explore, plan and navigate your financial future.

          We just need your contact details so we can connect you to a Financial Advisor. We will only share this with our team and nobody else.

            Contact Us

            Let us help you explore, plan and navigate your financial future.

            In order to match you with the right advisor, please complete the form below.

              Get In Touch

              Let’s hear your story.

              The first step is to give us a call or drop us an email to make an appointment to meet with one of our Independent Financial Advisors.

              You can call us on — 01246 550 521
              Our opening hours — 9am to 5pm Monday to Friday


                Before you supply any personal details to us via the contact us page on this website please read our customer privacy notice document. This notice sets out how we will process your personal data in line with the General Data Protection Regulations. Once you have read the customer privacy notice, please tick to confirm that you have read it and that you agree to Jones & Co processing your personal information for the purpose of contacting you. We will not use the details you provide us in the contact page to market to you.

                Free Guides

                Browse through our free guides curated by our expert team.

                Do you have questions about a specific area of your finances? One of our guides may be able to answer those burning questions. These guides have been written with you in mind.

                Successes

                Voted the Best IFAFirm in Derbyshire.