Contact

News & Insights

Are you aware of the new pound coin?

The Royal Mint says that approximately one in 30 round pound coins is counterfeit and the hope is that the new thinner, lighter, 12-sided design will be tougher to make a copy of because of its distinctive shape, the use of micro-lettering plus grooves on its side, the addition of a hologram image that changes from a “£” to a “1” when viewed from different angles, and it being made of two metals.

But while a new shape of currency may be exciting, it does come with a warning to those with an abundance of loose change around the house.

As the new pound comes in, then the old pounds must indeed go out. The deadline to use current one pound coins is 15 October 2017. However, many people are currently unaware of this change. According to a survey of 2,000 Britons by Mastercard, 87 per cent did not know they had until this date to utilise any round pounds rattling about in pockets, piggy banks, money jars, and down the back of UK sofas. In fact, only 17 per cent even knew about the new pound coin.

As the study found that Britons have roughly £15 to £25 in pound coins lying around their homes, this could mean that there will be a total of £1.1 billion in unspent change if Britons do not get spending or saving in time.

David Gauke, Chief Secretary to the Treasury, said that this “historic moment” should be on everyone’s calendar. “Our message is clear: if you have a round one pound coin sitting at home or in your wallet, you need to spend it or return it to your bank before 15 October.”

After the October deadline, shoppers will no longer be able to spend the old coins in shops, but most high street banks will still allow them to be deposited into bank accounts. However, there may be specific limitations and rules applied by individual institutions, so it will be important to check policy well before the cut-off date.

It should be possible to use the new pound coins in most vending machines, ticket machines, etc. from the date of introduction as businesses were made aware of the upcoming change three years ago. However, it’s likely that not all machines will accept the coins from day one of their circulation.

Make the most of your round pounds now!

While it may seem like a fairly small scale change, making sure you use all your pound coins before they become obsolete is showing good financial sense.

The financial advisers at Blacktower can further help you make the most sensible decisions in every area regarding pensions, regular savings, and investments – whether it’s moving your pension into a QROPS in France or helping you come up with the best savings plan to enable you to send your children onto higher education.

Contact one of our advisers today, and see how you can make your money go further.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

OECD Forum Speaker Says Retirement Savers Need Empowerment

DiscussionOn 20 May 2019, the Organisation for Economic Co-operation and Development (OECD) Forum 2019 in Paris heard from Aegon CEO Alex Wynaendts during a panel discussion*, in which he said that rising longevity “should be a gift and not a worry”.

However, he noted, preparing for this gift presents a challenge which needs to be addressed not only by the individual but as a joint action with employers and governments as well.

Read More

Keeping the NHR Tax Regime Could Be Good for Portugal in 2018

Cave on beach in PortugalIn September 2017, it was announced that the Portuguese Government, following pressure from Sweden and a number of other European countries, was looking to water down the country’s non-habitual residency (NHR) tax regime, potentially bringing to an end a programme that has worked in the interests of expats since 2009. The uncertainty this proposed move provoked certainly threatened to put a dampener on the financial plans of quite a number of expats and would-be expats as they moved into 2018.

However, the budget proposal presented by the Portuguese government in November seemed to allay these fears. There was not a single mention of the scheme, which would have seen the introduction of a flat rate of tax of either 5% or 10% on income drawn from the pensions of NHRs.

In all probability any such move would have seen the pensions of existing expat NHRs unaffected; however, it would have presented a significant stumbling block to the retirement plans of many looking to move both their wealth and their residence status to the country.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information: