State pensions and the National Living Wage both increased in April. April is the month when state benefits are uprated – unless they are subject to a freeze. It is also the month when the National Living Wage (NLW) and National Minimum Wage (NMW) are increased. In 2021, many social security benefits rose by 0.5%, as that was the annual rate of CPI inflation in September, the benchmark month. The 0.5% increase applied to some state pensions, such as the additional state pensi

The Organisation for Economic Cooperation and Development (OECD) is the latest body to wade into the inheritance tax debate – on a global scale. Inheritance tax (IHT) and similar gift/estate taxes raise a very small portion of overall tax revenues in the OECD countries that have them, as the graph above shows. Even in the UK, which levies that tax at above the OECD average, IHT produces less than £1 in every £100 of tax revenue. The OECD thinks this is a missed opportunity. I

The role of Individual Savings Accounts (ISAs) has changed since they were launched over 20 years ago, so are they still worth having? Since ISAs were introduced in April 1999 the ISA portfolio has been extended to include: · Junior ISAs (for the under-18s). · Help to Buy ISAs (no longer on sale). · Innovative Finance ISAs (for crowdfunding investors). · Lifetime ISAs (for 18-39-year-olds and a partial replacement for the Help to Buy plans). Despite the proliferation of ISAs,

A recent survey of people who have or plan to retire in 2021 provides interesting insights, whatever your intended retirement year. The average age of people planning to retire in 2021 is 60, according to a recently published survey by investment manager, Standard Life Aberdeen. That is six years before current state pension age, which will rise from 66 to 67 between 2026 and 2028. Those 2021 retirees will, on average, live for another 25 years if they are men, and 28 if they

One of the last decade’s more infamous financial scandals has finally reached a conclusion. The name of London Capital & Finance Plc (LCF) sounds impressive, but the business behind it was anything but. In the late 2010s, LCF issued ‘mini-bonds’, raising capital from individual investors to lend on to small businesses. LCF offered rates of up to 8%, tax-free via ISAs, which unsurprisingly attracted a large inflow of cash. Then, in mid-December 2018, the Financial Conduct Auth

Three letters, ESG, have become a major driving force in investment decisions. ESG – environmental, social and governance – considerations are playing an ever-increasing role in investment decisions. What used to be classed as ethical investment, socially responsible investment (SRI) and green investment have now to some extent merged under the ESG banner. The table below gives a taste of the broad range of ESG investment considerations. In 2020, the popularity of ESG funds a

The planned increase in corporation tax has changed some of the mathematics on incorporation. The Budget announced a significant change to corporation tax from 2023: · Small companies, with profits of up to £50,000, would continue to pay the tax at the current rate of 19%, subject to adjustments for associated companies and financial periods of other than 12 months. · Large companies with profits of over £250,000 will pay corporation tax at a rate of 25%. · For companies w