Deflation – a bad thing for pensions
Today’s announcement that the consumer price index (CPI) has seen a decrease (-0.1%) over the past year will be bad for both current pensioners, and many individuals with final salary benefits. CPI is the government’s preferred measure of inflation; cynics might say this is because it has historically been lower than the retail price index, the […]
Time travel: the only way to guarantee the best investment returns
It’s nearly thirty years to the day that Marty McFly set out in his time machine1. He left 1985, and will arrive with us on 21st October 2015. Now, with thirty years of history we know how his infallible knowledge of the future will have lead him to invest after he returns to 1985? It wasn’t a […]
2015.09: September Economic Review
Highlights UK economic output is 5% above the 2008 pre-recession peak UK economy expanding at a solid rate Inflation remains low Real earnings continue to rise Economic Review The second official estimate for Q2 2015 growth in UK GDP was unrevised at 0.7%. UK economic output is now over 5% above its Q1 2008 pre-recession peak. Overall, […]
How to (legitimately) reduce your inheritance tax bill
We’re just waiting on the final rules that will allow some couples to pass up to £1m to their children free of inheritance tax (IHT). The rules look set to be so riddled with caveats that they erode the benefit of this improvement; if you live in Caterham and the surrounding area it’s not uncommon that you’ll […]
Pensions complification!
As if changes to the Lifetime Allowance, April 2016, and alterations to Pensions Input Periods wasn’t enough to contend with, those with earnings over £110,000 now need to be mindful as to what they can contribute into pension in the near future. Those with a passing interest in pensions may know that the Annual Allowance […]
Company owners: should you hoard cash?
Many contractors operating out of Personal Service Companies (PSC) find that a significant amount of cash reserves build up in their company bank account over time. They are often advised by their accountants to leave as much money in the business as possible, as these funds can be accessed at a heavily reduced rate of […]
An end to pensions tinkering?
Strengthening the incentive to save: a consultation on pensions tax relief was produced as part of a budget announcement in July by George Osborne. The document introduces a consultation, ending this month, on what pensions should be like for the future. I have many views, but the one I am most passionate about is to build […]
The market for immediate needs annuities becomes more restricted
We learnt today that Partnership and Just Retirement, two leading providers with respect to pension annuities, are to merge. This actually has a more significant impact, in my opinion, on the long-term care fee planning market than pension annuities. What are immediate need care fee payment plans? These plans are a type of annuity contract, but purchased […]
Buy to let: not an investment panacea
Broadly speaking, when a property is let out, costs incurred in the running of the property, as a going concern, can be fully offset against the income generated. This would include agent’s fees, insurance premiums, some maintenance, and, for now, mortgage interest. However the Government is proposing to restrict the tax relief on mortgage interest payments […]
“Relevant Property Trusts”: Ten Years On
March 2016 will represent the ten year anniversary since inheritance tax changes were introduced to trust rules. From March 2006 settlements into trusts with an interest in possession were no longer treated as Potentially Exempt Transfers (PETs) but rather as Chargeable Lifetime Transfers (CLT), which was already the case with discretionary trusts. A PET will […]
