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Should you choose an ISA or Pension? It all depends on your perspective

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Using an ISA or a pension can be an excellent way of making your savings go the extra mile. but investors are often confused as to which one to invest in, explains Andrea Steel of Church House Investment Management.

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Choosing between an ISA or pension for your savings is by no means an either/or discussion – quite the opposite, in fact. Each are tailored to meet different savings requirements, and should nearly always be used together. Rather than trying to decide whether a pension or an ISA is better, the debate should centre on which is better in a given situation – for which savers need to know the differences between the products.

Similarities and differences

At their heart, both pensions and ISAs are designed as tax-efficient savings vehicles. Both allow individuals to hold their savings in cash, shares and bonds, as well as spread their money across a diversified portfolio of assets. Both also allow savings to grow tax free, as no income tax or capital gains tax is incurred as the value grows.

It’s when you get down to the minutiae that the differences between pensions and ISAs become more apparent. For example:

  • Employers are not obliged to make contributions into an employee’s ISA, while they are, in most cases, into an employee’s workplace pension.
  • ISA savers are not charged income tax when they access their money, whereas pension savings are taxable once the 25% tax free pension commencement lump sum has been withdrawn

Other differences exist beyond these, but perhaps the two most important when deciding which to use are tax relief and flexibility.

Tax relief

When one puts money into a pension, the government gives a rebate that is equivalent to one’s marginal rate of tax to top up the pension. In simple terms, this means that a £100 investment will only actually cost £80 for a basic rate taxpayer.

Couple this with the money an employer is obliged to contribute, and it is easy to see how the value of pension savings may grow above investment performance.

Flexibility

Conversely, while this ‘free money’ in the form of tax relief and/or employer contributions is not available to ISA investors, an ISA has far superior flexibility. Savers may usually only access their pension funds from age 55 (57 from 2028), ISA savers can access their funds whenever they like. That being said, it should be noted that some types of ISAs (such as the Lifetime ISA) do impose conditions on withdrawals.

The end goal

It is clear is that neither a pension nor an ISA is “better”– they are different tax-efficient products for different purposes.
For those thinking about saving for their retirement, the pension is the obvious choice.
Not only do investors receive more tax benefits than if they were to use an ISA, but the
fact that they cannot access their money before age 55 also removes the temptation for early withdrawal.
However, for those with more short-term savings requirements – buying a house or a car,
putting a child through school or university, for example – an ISA might be a better solution. Indeed, although contributions will not enjoy government or employer top-ups, ISA savings can still grow without that growth being taxed and has the added benefit of being accessible at any time.

Whatever your stage in life, whatever your priorities, Church House are here to help you invest to achieve your goals. If you would like to find out more about our wealth management services, please contact our Dorset office in Sherborne on 01935 382620 or [email protected]

Important Information The contents of this article are for information purposes only and do not constitute advice or a personal recommendation. Investors are advised to seek professional advice before entering into any investment decisions. Please also note the value of investments and the income you get from them may fall as well as rise and there is no certainty that you will get back the amount of your original investment. You should also be aware that past performance may not be a reliable guide to future performance.

Church House Investment Management is a trading name of Church House Investments Limited, which is authorised and regulated by the Financial Conduct Authority.

New Position available at Dorset Blue Vinny

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Exciting position available at Dorset Blue Vinny

Join the team and learn to make cheese!

4 days a week,

• Up to 30hrs/week

• Early start, early finish

• Competitive rates of pay

• Must be physically fit

Please phone and speak to Emily or Sue on: 01963 23133, pop into the office at Woodbridge Farm DT10 2BD or send an email to [email protected]

Various Equestrian Vacancies | The Chedington Court Estate

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YOUNGSTOCK GROOM, GLANVILLES WOOTTON, DT9

We are looking for new full or part time members of our team to join us as our youngstock yard develops. Join our friendly team as we raise sport horse and thoroughbred youngstock, handling and preparing them for exciting futures ahead. All general yard duties including mucking out, grooming, handling and feeding are vital to this role.
Previous experience with young horses required, along with a proactive approach to all aspects of yard life. We are part of The Chedington Court Estate, and offer excellent working conditions for our employees.
Based just outside of Holwell/Glanvilles Wootton, approximately 5 miles from Sherborne. Due to our location, you will ideally need to drive.
For more information, please contact Vicki on 07817 960454.  

YARD AND COMPETITION GROOM, BEAMINSTER, DT8

We are seeking an enthusiastic person to join the team at Chedington Equestrian. The yard is a purpose built, high-end training and rehabilitation yard. We have a great team of people and this will be a great role with plenty of support and variety. The position will include all daily yard and horse care jobs as well as supporting one of our resident eventing riders at competitions and training days. The role will also involve assisting in the rehabilitation and therapy yard with the rehabilitation liveries and horses coming in to use the aqua treadmill. Sorry this role does not allow horses or dogs. On site accommodation with all bills included.

For more information, please contact Bek Burton on 07879 761396

Retail Assistant Required | Thorngrove Garden Centre

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Retail Assistant Required, Gillingham North Dorset.

Full time Retail Assistant wanted join our team at Thorngrove Garden Centre.

40 hours per week. £10.50 per hour.

32 days holiday.

Full Christmas Shut Down.

Garden Centre & EPOS management experience or similar required.

For full job description and how to apply click the following link: https://bit.ly/thorngroveRetail

Closing date for all applications is 18/02/2022

The Dorset canal that wasn’t | Looking Back

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During Britain’s Industrial Revolution, 4,000 miles of canal were developed in an astonishingly short time – but in the end, Dorset didn’t get any! Roger Guttridge details the local planning catastrophe.

The sketch of Fiddleford showing plans for an aqueduct across the present-day A357 (modern map for comparison below)

As a veteran of canal holidays in the ’70s and ’80s, I’ve often wondered what Dorset would have been like had these arteries of the Industrial Revolution reached our county. They almost did: between 1796 and 1803, eight miles of the Dorset and Somerset Canal were constructed at the Somerset end.
Had the ambitious project continued, parts of North Dorset would have been transformed, especially Fiddleford, where there were plans for an aqueduct fed by the Darknell Brook (see images, above).
Had they come to pass, the Fiddleford Inn or the former Traveller’s Rest, two doors away, might now be called the Narrowboat or the Boatman’s Rest.

The feasibility of a ‘Dorset and Somerset Inland Navigation’ was first discussed at a meeting in Wincanton’s Bear Inn in January 1793, when canal- mania was sweeping across the entire country.
In 80 years, 4,000 miles of canals were built, helping to transform both the national economy and local economies along their routes.
The local plan was to provide a waterway link between Poole and Bristol – an alternative to the long and hazardous voyage around Cornwall.

Huge network planned!

Supporters predicted a regular traffic in coal from the Bristol and Somerset coalfields, and Purbeck clay destined for the Staffordshire Potteries.

Other cargoes envisaged included freestone and lime from Somerset and timber, slate and wool from Dorset.
Initially there was great interest from investors with subscriptions greatly exceeding the prescribed minimum.
The proposed route ran from Bath to Frome (with a branch to the Mendip collieries) and on via Wincanton, Henstridge, Stalbridge, Sturminster Newton, Lydlinch, King’s Stag, Mappowder, Ansty, Puddletown and Wareham to Poole Harbour.
Wareham folk were supportive but a meeting at the Crown in Blandford insisted the canal would be more beneficial if it went from Sturminster Newton to Poole via Blandford and Wimborne.

Counting the cost

Robert Whitworth, the project’s consulting engineer until he resigned in September 1793, favoured the Blandford option. His costing for the 37 miles from Freshford to Stalbridge was £100,234 (approximately £15,461,737 in 2021)

The remaining 33 miles to Poole had an estimated cost of £83,353.

The Blandford route was finally chosen in 1795 but with branches to Wareham and Hamworthy.

It seemed like the perfect compromise but there was still opposition from some landowners.
Lord Rivers insisted that ‘the canal did not proceed beyond some point betwixt Sturminster and Blandford, otherwise withholding his consent’.
In 1796 a drastic decision was taken to abandon the southern section, reducing the canal’s length to 48 miles and the cost to £146,018 (approx. £22,524,212 in 2021 terms).
Bizarrely, it would now terminate at Gain’s Cross, Shillingstone.

Catastrophe rocks the plan

With £73,000 already raised from shareholders, the necessary Act of Parliament was quickly obtained and received royal assent.

It gave the owners the right to draw water from any source within 2,000 yards of their canal and to create a junction with the Kennet and Avon, thus connecting to the national network.

Work on the Mendip collieries branch began in the summer of 1796.

A newspaper advertisement said progress was rapid, the public would soon experience the benefits of the canal and ‘part of it near the collieries is already completed and a barge was launched there on Monday’.

The advertisement proved to be hopelessly optimistic.
Of the original £70,000 pledged by prospective shareholders, only £58,000 materialised.

Over the next few years, partly due to the Napoleonic wars, the company lurched from crisis to crisis and only eight miles of canal were built. Progress was hampered and expenses increased by the rocky terrain.

Those eight miles alone required 28 bridges, three tunnels, an aqueduct, 11 grooved stop-gates, nine double stop-gates and three balance locks.

Construction ceased in 1803, when the last of the money ran out, although hopes lingered
on until the mid-1820s, when attempts were made to involve the canal company in plans for a railway covering the same route. It would be another 30 years before the rail link came to fruition.

By then the canal – originally described as ‘one of the best conceived undertakings ever designed for the counties of Dorset and Somerset’ – was reduced to an overgrown relic in the Somerset countryside.

The company’s records suffered an even worse fate when a bomb fell on Wincanton during World War Two.

Among the few surviving documents is the plan for the double-arched aqueduct at Fiddleford, shown opposite.
The picture also shows a ford where the stone bridge is today and two houses that still survive.

by Roger Guttridge

Comapanion Wanted | Sherborne

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Companion, occasional carer required, live in, for 80 year old lady.

Appt in a wonderful house in central Sherborne.

Ability to converse, light meals and driver preferred.

Flexible Hours/Days to be arranged.

Please contact Hannah Jackson: [email protected]

Wessex Group raises £5,000 for Dorset Charity Teddy20

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After a year of fundraising, Wessex Group Ltd, based in Shaftesbury, is thrilled to present Teddy20 with a cheque for £5,000.

From fancy dress to cake baking competitions, the teams have pulled out all the stops and had huge fun doing so. For the most recent fundraiser the teams held a Christmas tombola with an impressive array of prizes donated by staff, suppliers and customers. Prizes included a 55” flat screen tv, Virginia Hayward hampers, wine, champagne and a lot of chocolate. The raffle tickets alone raised over £2,000.

In 2021, Sam James from the Wessex Property Care team nominated Teddy20 for the company’s annual fundraising charity.
Sam described his rationale “Teddy20 provide funding to families to ease financial pressures, offer a holiday respite in their ‘Ted Shack’ holiday home, and host parties, events and experiences for the children and their families. They also donate money to research into various forms of cancer.

I volunteer in various ways for this charity, and they never fail to blow me away with their amazing work. They work so hard to raise the money, let alone the work they do with the money. They are local heroes and the money we would raise would do so much good for so many families suffering the effects of children’s cancer.”
Simon Morgan, Director said, “The staff are fantastic and always get stuck in to raise money; it is heartening to know that the fun we have at the events go to a very worthy cause.”

Owen Newton, Founder of Teddy20 said, “We are very thankful to Wessex for their efforts this year and the amount they have raised for Teddy20. We survive solely on donations and their support will help us continue to provide support to children and young people suffering with cancer.”

Gillingham’s survivor pubs | Then and Now

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At least externally, two of Gillingham’s pubs have barely changed in the 120 years between these two pictures, says Roger Guttridge.

The c1900 picture from Barry Cuff ’s postcard collection appears in David Burnett’s latest book Lost Dorset: The Towns.

Confusion reigns over the address of the Phoenix Inn at Gillingham, which some sources give as High Street, others as The Square and which until the 1880s was in Bridge Street.

Names aside, the location has changed remarkably little in the 120 years or so between the taking of these two pictures.
For one thing the two pubs in the picture not only survive but retain their names, although the Phoenix (near right) has changed from ‘Commercial Hotel’ to ‘Inn’.

The Red Lion is a few doors further along on the right. Between them are the former Free School, which was founded in 1516 and survived until 1876; Mayflowers the florists; the Topsie Rabbit Kindergarten; Stone House; and Reynolds’ pet supplies and boot repairs. The Square end of the Phoenix (near right in the bottom image) is now the Gillingham Tandoori Indian Restaurant.

On the far left of the pictures (where the two boys stand) is the entrance to Church Walk, leading to the parish church.
Beyond the boys today are the art shop Scenes, a couple of takeaway shops, the Studio and Rutters the solicitors. The large three-storey building in the middle of the terrace formerly hosted Silvester Edgar’s watchmaking, printing and bookbinding business but is now residential accommodation.

by Roger Guttridge

by Roger Guttridge

Calling all potential sponsors – Join the Dorset food movement everyone is talking about.

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As the Love Local, Trust Local Awards enters its third season, founder Barbara Cossins is thrilled so many sponsors have remained – but is looking for a few new partners to join the 2022 awards.

Barbara Cossins, local farmer, business woman and founder of the Love Local Trust Local label and Awards.

Now in its fourth year, Love Local Trust Local is making great progress in educating and encouraging the people of Dorset to eat & shop locally, supporting our incredible array of food producers, farmers & fishermen.

This year, they are looking for more local Dorset organisations to become part of the Love Local Trust Local sponsorship family. Remaining for their 3rd consecutive year as sponsors are NFU Mutual Wessex, Blanchard Bailey, Symonds & Sampson, The BV Magazine, Damory Vets, Kingston Maurward College, Roberts Foodservice, Chase Farming, Hemsworth Farm, Harbarn Developments, Dike & Son and Saffery Champness.

Join the family

For a small investment you can join them and benefit from so much in supporting the production of wonderful food & drink here in Dorset. Sponsorship of a category is only £750 for the year. Some of the many benefits include:

  • Raising the local profile of your business & gaining positive publicity & PR
  • Benefitting from an increased online presence and profile by association
  • Becoming a judge of the tastings for the finalists in your category
  • Developing new partner relationships with other key Love Local Trust Local sponsors
  • Appearing in printed, online and PR placement as the key sponsor for an entire award category
  • Having your own organisational website profile on the well-respected Love Local Trust Local website
  • Building awareness of your brand with Dorset businesses from regular activity on a range of social media platforms supporting the annual Love Local Trust Local Awards
  • Enjoying networking opportunities with everyone involved
  • Attending the Awards Night as our guest and bringing clients or team members with you to celebrate your achievements
  • Presenting your Love Local Trust Local award to the lucky winner at the main event
  • Displaying your own pop-up banner & marketing material to the awards event to promote your business on the night

Love Local Trust Local is fast becoming the food & drink movement to be part of, campaigning for British food and fair treatment for our farmers, food producers and fishermen and support from our government, local and national.

Get in touch at [email protected] or call 07831 184920 and talk to Barbara Cossins, the founder of Love Local Trust Local

KIndly Sponsored by: Blanchards Bailey – Law for Life