Divorce can be a difficult process at the best of times. Even in relatively straightforward cases, it’s a long and expensive procedure. Lawyers don’t come cheap, and the incidental costs associated with at least one partner finding new accommodation and establishing a new life are unavoidable. This article deals with the complexities of multi-jurisdiction divorce […]
QROPS transfers guidance
The financial industry welcomed the Pensions Regulator’s guidance notes on QROPS transfers. New rules designed to prevent scams were sorely needed as we have seen so many people’s pension pots decimated by criminal behaviour and poor adviser practises. However, pension providers often interpret the recently introduced red flag system incorrectly. This is unsurprising as insurance […]
UK pension options for US citizens
People who now live in the USA and built up private or company pensions whilst working in the UK often face several challenges when accessing information, obtaining advice and transferring their plan to something more appropriate to their residency status. So, what UK pension options are available to ‘US-connected’ citizens, and can better outcomes be […]
Pension transfer regulation
The UK government introduced new pension transfer regulation in November 2021 to combat pension scams. A traffic light flag system was created to help Trustees and administrators of pension schemes identify and reject transfers that might result in the policy owner being scammed. Individuals and the pension industry welcomed this. Not before time, some would […]
Abolition of the LTA in the UK Budget
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 […]
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). […]
Wealth Tax in Andalucia eliminated
The much despised Wealth Tax in Andalucia has been eliminated following Juanma Moreno’s recent election victory. Great news for Andalucian taxpayers! QROPS relationship with Wealth Tax has always been a contentious issue; at least we now know that they are definitely outside the scope of Wealth Tax for Andalucian (and Madrid) taxpayers, albeit by default. […]
How to avoid unnecessary investment management fees
Trying to understand investment management fees can be a challenge for investors. There’s an old saying about buying cars: no matter what the bodywork looks like, you should always look under the bonnet before committing to the purchase. The same applies to investment fund purchases. Marketeers are experts when describing their particular fund offerings’, the […]
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 […]
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 […]
Lifetime Allowance changes
This week saw the Westminster ‘Rumour Mill’ in full flow. Commentators and political pundits have been speculating on how the government will pay for the massive spending related to the Covid crisis. Taxes, and in particular the Lifetime Allowance, may be about to change. The cost of Covid is estimated to be around £360bn. The […]
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 […]