The recent Budget was one of tax pain largely deferred. Mr. Sunak was never going to introduce significant tax increases as economic recovery is the priority. The proposals of most interest were:
- The addition of £70 to the personal allowance and £200 increase in the basic rate band, in line with indexation requirements. However, after 2021/22, the personal allowance and higher rate threshold (outside Scotland) will be frozen for four tax years.
- The inheritance tax nil rate band, the pensions lifetime allowance and the capital gains tax annual exemption will all be frozen at their current levels for the next five tax years.
These freezes, along with rising property prices across the UK, mean that investment values are growing, putting more people at risk of falling into the inheritance tax net. The Government raises billions each year from people sleepwalking into higher and higher taxes. It is time to act. No matter how large or how modest, everyone has an estate and you will want to control how it is administered to the people or organisations you care most about. There are lots of points to consider such as making a will, appointing a Lasting Power of Attorney or nominating a pension beneficiary. It is important to plan ahead with confidence in order to minimise the tax burden for your family and loved ones in the future.
The world has never seen as much coordinated stimulus as in the past nine months. This sets the stage for a strong economic recovery across the world in 2021. Markets have already put COVID-19 behind them and have been largely positive since January. Biden wasted no time in unveiling a $1.9 trillion stimulus package and the UK has announced more measures to protect badly affected businesses. Companies know that the end is in sight and they also know that consumers are itching to spend as soon as they can. However, returns on bank and building society accounts are falling to a minimum and interest rates and inflation are picking up. All of this suggests now is the time for a financial review so that you are ready for the recovery.
During the Covid-19 pandemic, financial scams have been a growing problem, particularly affecting the older generation with the average age of a victim being 75. The need for trusted, independent advice has never been greater. Hamnett Wealth’s Director, Jonathan Rowley, is a SOLLA accredited Independent Financial Adviser. SOLLA is a not-for-profit organisation founded to make sure older people and their families get the very best advice when it comes to financial planning for later life. SOLLA members keep up-to-date with the fast-moving world of financial fraud and can help to spot the signs of scams. They are dedicated to providing the right advice and with a full understanding of the issues affecting older people and their families. Hamnett Wealth Management has also committed to the Financial Vulnerability Taskforce Charter which aims to promote a greater understanding of vulnerability, encourage appropriate behaviours and establish good practice amongst personal finance professionals in respect of people who find themselves in vulnerable circumstances.
Hamnett Wealth Management offers a free consultation where you can gain an independent and professional second opinion on your financial arrangements. Do you know what your current advisor is charging you in fees? Recent press reports have highlighted several cases of people moving their portfolios and pensions from a certain provider because they have been subjected to high fees, poor service and a lack of transparency. Maybe you’ve lost touch with your financial advisor, are unsure of how your portfolio is performing or are looking to minimise the fees you are paying – our Advisors can review your finances and look at alternate ways for you to get a good return on your savings and pensions. We keep our costs to a minimum and because we are independent, we don’t need to worry about shareholders. We can then pass these savings onto our clients, meaning that our fees are cheaper than the large corporate companies.
Our office is operating as normal but we can also offer appointments in the comfort of your own home, by telephone or by Facetime, Microsoft teams and Zoom. Please call us on 0114 235 3500 to arrange a free initial meeting.
This article appears on page 27 of the June issue of Westside magazine. You can read the magazine online at Westside | RMC Media.