Euro Drops to Low Against US Dollar

The Euro dropped to a low of 1.34 against the US Dollar due to the prospect of quantitative easing by the European Central Bank (“ECB”). The euro zone economies continue to struggle with news that Germany experienced negative growth last quarter. The German economy has been affected by the slowdown in the Eurozone and the economic impact of sanctions against Russia.

The S&P500 rose to a record high this week and broke the 2,000 barrier as confidence in the US recovery increases.

Tax Free NISA Allowance Increased To £15,000 From 1 July 2014

The new tax free NISA replaces the ISA from 1 July 2014. The NISA enables individuals to invest up to £15,000 tax free from 1 July 2014, up from £11,800. Under the new rules you can now split the NISA allowance as you wish between a Stocks & Shares NISA and a Cash NISA.

Contactors and savers with spare cash should consider topping up their NISA to £15,000 for the current tax year as this is an effective tax free method of investing.

Property Tip: Right to Manage Company

If you live in a block of leasehold flats and you’re not happy with the management of your building, you can either:

        1. Ask the Leasehold Valuation Tribunal (LVT) to appoint a new manager.

        2. Take over the management responsibilities, known as your ‘Right to Manage’.

The Right to Manage lets you and the other leaseholders take over certain management responsibilities (such as maintenance) from the landlord (freeholder), without having to prove bad management, negligence or wrong doing by the landlord. If you fulfil the following criteria, you can set up a limited company with the other leaseholders. The landlord will then transfer the management responsibilities to that company. You and the other leaseholders can then manage the building yourselves or pay a managing agent to do it for you.

1. At least two thirds of the flat owners (leaseholders) within the physical block must have long leases (more than 21 years at the time of issue).
2. At least 50% of the flat owners (leaseholders) within the physical block of flats must want to go through the process.
3. No more than 25% of the block may be used for non-residential use (excludes car parks and common areas connected with the flats).

You may claim the Right to Manage your property from £35 per flat including VAT, subject to a minimum charge of £450. In the Right to Manage  process, the law requires that you pay the reasonable legal costs of the freeholder, which should be around £600 + £25 per flat up to a cap of £3,000.

Belsize Accountancy can help you to set up your limited company and get you the most benefit out of the Right to Manage. If you have any further enquiries, please contact for more advice on 0207 043 0052 or email info@belsizeaccountancy.co.uk.