Note that your next update for Capitalise (planned for release in June) will be for completely updated software, with both a desktop and online version. More details to follow!
- All necessary financial information has been updated to reflect the current tax/benefit allowances and rates for 2017-18.
- Note that this year, for the second time, time, ONS14 are used as the default male and female life expectancy tables for the calculations.
- The 'quantitative easing' (a temporary reduction in the assumed yield in year one to 1.5% before reverting for all subsequent years to the normative level of 3% p.a.) introduced in the financial year 2009-10 has been extended into this, a ninth, year.
- The recent reduction in the discount rate in the Ogden Tables applicable in personal injury cases to -0.75% has not been applied to the Duxbury calculations, as it largely reflects the much higher than general rate of inflation applicable to the medical and care costs components. For the reasons explained by Lady Hale in Simon v Helmot  UKPC 5 where precisely the same issue arose, the position of a patient in need of enduring medical care and that of an ex-spouse seeking financial security are not the same.
- An underlying assumption for 'default' calculations is that the recipient will be or will become entitled to a 'full' state pension (an assumption which will for some individuals be invalidated by the abolition, since April 2016, of the right to rely on an ex-spouse's National Insurance contributions).
- State pension age changes introduced by the Pensions Act 2014 are reflected in Capitalise calculations. The state pension age is currently 65 for men and gradually increasing for women from 60 to 65. From December 2018, it will start to increase for both men and women to reach 66 by October 2020. The government plans further increases to raise the state pension age from 66 to 67 by 2026. They will then review it every five years in line with life expectancy. You can see the date at which state pension age is reached, listed in bands according to the recipient’s date of birth, in Preferences.
- Notwithstanding the implementation into UK insurance law of the March 2011 decision of the CJEU decision prohibiting the inclusion of differential gender-based risks on the calculation of insurance premiums and annuity rates, Duxbury calculations continue to be shown separately for male and female recipients. The view is taken that that decision is not directly applicable to the task in hand. It may be that it will be successfully argued (presumably by a husband - whether claimant or respondent) that differential rates are inapposite, but until then Capitalise will continue to publish comparative figures. To implement unified rates would result in women receiving markedly lower, and perhaps men more generous, awards which it would be difficult to justify objectively.
Please do call our customer helpline on 01652 652 222 if you have any problems downloading or installing the file.