© 2019 Bluecoat Wealth Management

Decisions should not be taken based solely on the content of this website, individual advice should be taken first. Content is aimed at UK residents.

Bluecoat Wealth Management is an appointed representative of Best Practice IFA Group, which is authorised and regulated by the Financial Conduct Authority (FCA), FCA no. 223112. Registered Office: 11 Lady Bee Enterprise Centre, Albion Street, Southwick BN42 4BW. Registered in England and Wales no. 6828686. The Financial Ombudsman Service (FOS) is available to sort out individual complaints that financial services businesses and their clients are unable to resolve. To contact FOS please visit www.financial-ombudsman.org.uk

Please reload

Recent Posts

The current renewed volatility in financial markets is reviving unwelcome feelings among many investors—feelings of anxiety, fear and a sense of power...

Living with volatility

November 24, 2011

1/1
Please reload

Featured Posts

FYI - in the news

November 11, 2017

 

Mummies march on discrimination
 
Becoming a mother is the ‘single most damaging thing you can do to your career’, an FT journalist was told by one of hundreds of mothers dressed as mummies as they protested in London.
 
Marchers told of jobs arbitrarily terminated when they announced their pregnancy, or made impossible after a return from maternity leave. The Equality and Human Rights Commission found that 54,000 women a year lose their jobs as a direct consequence of maternity or pregnancy discrimination. The FT journalist’s verdict: Businesses that do not change with the times and embrace flexible working are setting themselves up to fail.


Inheritance claims beyond the grave
 
The decision earlier this year to exhume the remains of Salvador Dali to determine an inheritance claim are an extreme example of a growing trend where potential beneficiaries challenge the division of an estate, says the Financial Times. 
 
In Dali’s case, the claimant said she was his daughter, but DNA taken from Dali’s remains proved that she was not and she lost her claim for a quarter of his multi-million estate. In the UK, more inheritance claims are being heard by the High Court, and recent decisions have made it clear that a child will often succeed in a claim for part of an estate unless very specific reasons are given for excluding them.


High charges from professional executors
 
The Times reported the case of a man whose £300,000 inheritance was eroded by over £100,000 of legal costs incurred by the firm of solicitors appointed by his father as executors of his estate.
 
It is not always easy to challenge high fees charged by professional executors, and in the case of simple estates, the Law Society says there may be little benefit in having a lawyer acting as executor. Yet some solicitors routinely appoint themselves as executors when they draw up Wills. 


Woodford under pressure as investors withdraw funds
 
High-profile fund manager Neil Woodford is under pressure, says the Financial Times, after a large investor decided to withdraw hundreds of millions of pounds from the £8.9 billion Woodford Equity Income fund.
 
Jupiter Merlin had supported the fund manager for the previous 20 years and have given no reason for the sale, but analysts said Woodfords relatively positive stance on the UK economy, which has led him to buy cyclical stocks and UK banks, may have been a factor.


Crackdown threat on self-employment
 
The Treasury is considering extending a crackdown on self-employment from the public to the private sector, says the Financial Times. 
 
In April, it changed the rules that define self-employment for the public sector, with the result that 90,000 extra public sector workers are now taxed as employees rather than self-employed. In the private sector, people can still benefit from lower tax rates by using personal service companies, but perhaps not for much longer. Experts said the government would need to give business at least a year to prepare for any change. 


This one could drive you nuts
 
A tax expert described the new Residence Nil Rate Band RNRB for Inheritance Tax as “a case study in how not to enact new tax law”, reports the Telegraph.
 
The way it is being phased in from 2017 to 2021 adds to the already formidable complexity of the rules, which HMRC admits it cannot fully explain in simple terms. The downsizing rules, intended to ensure that those who sell a large property in retirement don’t lose the new allowance, are particularly convoluted. 


When I’m 94…
 
‘Has retirement ended?’ asks the Telegraph. 
 
It reports that back in 1984, only 56% of people over age 50 were working; by last year, that had risen to 71%. Today, 10% of men and 8% of women are still working after the age of 70 and the proportion is expected to keep on rising. Academics say that if you assume a 100-year lifespan and a savings rate of 10% of earnings every working year, a couple would not be able to retire on an income of half their earnings until their mid-80s. Many older people will want part-time work as life expectancy increases, but the Telegraph questions whether there will be enough jobs of this kind for everyone who needs one. 


Rumours of pension tax raid
 
There are rumours that Chancellor Philip Hammond will raid pension funds in his Budget on 22nd November in order to fund handouts for hard-pressed younger workers. 
 
The £38 billion of tax breaks used by pensions go mainly to older people, and reducing such reliefs might seem politically attractive. But experts said the complexity of the system meant redistributing tax reliefs would be highly problematic and unlikely to succeed. 


Too much pension tax
 

Hundreds of thousands of people have paid too much tax on the withdrawals they have taken from their pension funds, says the Telegraph. 
 
In the three months to September, HMRC repaid £37 million of overpayments and since 2015 it has repaid a total of £262 million. HMRCs system for taxing pension income assumes the first payment you take is a monthly amount, so it bases the tax due on a withdrawal of 12 times that amount over a year. Depending on your status, you have to use one of three different forms to make a reclaim. 


Slump forecast in Buy-To-Let
 
Estate agents Savills have predicted that the number of properties purchased by buy-to-let investors using a mortgage will fall by more than a quarter over the next five years, says the Telegraph.
 
Higher stamp duty, tougher mortgage regulation and restricted tax relief on interest payments will all help to reduce profit margins for BTL owners. But the number of cash purchases of BTL properties are predicted to rise.


Don’t fall for the Pay in £ card trick
 
When you’re abroad, you will often be offered the option of paying in sterling or in local currency with your credit or debit card. 
 
But, warns the Financial Times, paying in £ rather than local currency can mean you pay 10% more. This is because the dynamic currency conversion used by card providers has much less favourable exchange rates. The FT suggests you get a fee-free card such as Nationwide or Halifax Clarity or use a pre-loaded card such as FairFX, Revolut or Monzo to make your holiday money go further. 



 

The above content should not be construed as advice – please contact us if you wish to discuss how your finances might be affected by any of the above.

Please reload

Follow Us
Please reload

Search By Tags