No one expected the abolition of the LTA in the Budget. Rumours always abound within the industry the week before, but major structural changes rarely happen. The industry expected the limit to be restored to £1.8m, but the Chancellor went even further, with the abolition of the LTA completely. The rationale was to encourage highly […]
Solving the mobile employee pension conundrum
I recently talked with a Human Resources professional about providing mobile employee pension benefits for their overseas workers. It went a little like this. Caller – “Hi, I’m enquiring about an International Pension Plan for our non-UK employees. I suspect we’ll have a nice chat; then you’ll tell me it’s impossible!” Me – “I’m sure […]
Investment options
Not long ago, shareholders were limited to a narrow range of investment options. Employing a stockbroker was only open to the very wealthy; Unit Trusts were in their infancy and considered too risky for most, and With-Profit funds dominated the pension and endowment market. With-Profit funds were ok up to a point. However, they fell […]
Personal pensions and IHT
Countries worldwide are battling the financial consequences of Covid and the cost of living crisis. The UK is no different, with government resources struggling to provide services to the public. Into the fray stepped the Institute for Fiscal Studies (IFS), a leading independent economic research institute, with proposals for personal pensions and IHT (inheritance tax). […]
Best SIPP for EU residents
The best SIPP for EU residents is an International SIPP. Sometimes referred to as a ‘non-resident SIPP’, it can be a useful retirement planning tool for expatriates. Many of us live, work or retire in an EU country and have a long ‘to-do list’ that needs ticking off before we can settle into everyday life. […]
The truth about pension fees and charges
New disclosure regulations for investments into financial products have obliged providers to make major changes to how pension fees and charges are presented to investors. These rules apply to all investment funds, pension plans, and QROPS trustee fees. Not only must pension fees and charges be disclosed before an adviser can complete an application, but […]
Investment risk management
Investment risk management is an on-going exercise if we wish to meet our financial planning goals. As our personal situation changes, it’s important that we alter our investment portfolio to reflect new needs and requirements. While it’s relatively easy to assess risk at the point of investing, unforeseen events can force a rethink. The most […]
Pension scams and new QROPS rules
The UK government recently published a paper on regulations designed to combat pension transfer fraud, including new QROPS rules. Pension scams are the scourge of the professional financial services industry. Unfortunately, too many consumers have lost some or all of their funds to unscrupulous, so-called advisers. The idea behind the legislation is to stop scams […]
The UK Budget – Autumn 2021
The UK budget contained a mixture of giveaways and takeaways; its impact on the public depends on individual circumstances. One consistency with each Chancellor is that the budget is always presented as a positive initiative from a forward-thinking politician! Rishi Sunak followed the trend, basing his tax and spending decisions on “levelling up” and “a […]
Cash management in uncertain times
Never has it been more important to be aware of cash management in our financial planning. Markets are going through a period of high volatility where even traditionally low-risk sectors don’t offer a safe haven. An effective cash management strategy can plug the gap in unpredictable times. Fixed Interest funds are suffering due to gilt […]
Wealth Tax in Spain
Wealth tax in Spain is regarded as being a ‘blunt tool’ used by the government to raise revenue. It seems particularly unfair as an individual’s wealth has been accumulated from assets and income which has already been taxed. The good news is there are ways to significantly reduce liability for wealth tax in Spain by […]
Retire in Italy
If you are planning to retire in Italy there are some interesting options available to you. Many EU countries are considered relatively high cost from a tax perspective. However, things have been changing as Member States realise that lower tax rates are a great way of attracting wealthy individuals who provide much-needed income to local […]
Investments and Brexit: the end of passporting
Just when we all thought the EU/UK withdrawal agreement was done and dusted, it looks like we will have to suffer many more months, or possibly years, of uncertainty over investments and Brexit. There has been much publicity surrounding the Irish border question and fishing rights, but many other issues need to be negotiated before […]
QROPS tax on transfers post-Brexit
What type of QROPS tax should we expect post-Brexit? An important part of working in the financial industry is predicting future changes to legislation that will affect clients. Sometimes we have clear deadlines to beat; other times, it’s more a question of being prepared with contingency plans just in case. QROPS tax rumours The rumour-mill […]
QROPS Overseas Transfer Charge
What will happen to the QROPS Overseas Transfer Charge is still unclear, despite the end of the Brexit transition period on 31 December 2020. Until we know the full extent of the UK/EU relationship it will be difficult to prepare for the ‘new normal’. The UK economy is heavily reliant on financial services. This sector […]