S&W The Pulse

The tax year end is approaching on 5th April. In this episode we discuss what you can do ahead of the year end to put you in the best tax and financial position.

Episode overview:

• Consider making tax-free investments through National Savings or ISAs. The annual ISA subscription limit for 2021/22 is £20,000, and this limit cannot be carried forward if not used.

Remember, all investments fluctuate in value and you may not get back the amount invested

• Pension contributions are still a really tax-efficient way of saving for retirement, with tax relief given at your highest marginal rate of income tax. This is quite a complex area as tax relief is restricted in various ways.
• Spouses and civil partners can review who holds any savings that generate taxable income to ensure allowances are used efficiently.
• If you pay tax at the 40% rate or higher, you may be able to claim tax relief on gift aid donations you make to charity.
• As capital gains tax is charged when an asset is sold, you have some control over when to pay it, for example, assets could be sold to use your CGT annual exemption or unrealised losses crystalised to offset gains.
• On IHT, there are various allowances for gifts, which many people are unaware of.
• Enterprise Investment Scheme (EIS), Seed Enterprise Investment Scheme (SEIS) and Venture Capital Trust (VCT) investments may provide tax relief and the opportunity to defer capital gains, but are higher risk.

These options are relevant to most taxpayers but could be particularly valuable to those subject to an effective rate of tax of 60% on income between £100,000 and £125,140#.

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This episode was recorded on 28/02/22

This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.

Tax [and Government] legislation is that prevailing at the time, is subject to change without notice and depends on individual circumstances. Clients should always seek appropriate tax advice before making decisions. HMRC Tax Year 2021/22.

While the Ukraine crisis has undoubtedly destabilised markets, they were already fragile. Inflation has been the key driver for this uncertainty, with CPI in the US tipping over 7%. For the first time in 40 years, investors need to contend with central banks tackling a sharply rising cost of living by raising interest rates

Food and fuel remain the key areas of rising prices. Labour shortages, rising processing costs and delivery concerns have pushed the UN Food and Agriculture Organisation’s price index up by nearly 50%. At the same time, energy prices have spiked in response to the Ukrainian crisis.

Having initially considered inflation to be transitory, central banks are now starting to act. All eyes are on the Federal Reserve, which may raise rates for the first time since 2018 in its March meeting. This change of mood has delivered higher bond yields and may prompt a significant rotation in markets in the year ahead.

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This episode was recorded on 01/03/2021

Capital at risk. Please remember the value of investments and the income from them can fall as well as rise and investors may not receive back the original amount invested. Past performance is not a guide to future performance.

This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.

Smith & Williamson Investment Management LLP

Authorised and regulated by the Financial Conduct Authority. Registered No 580531

As the US 10 year treasury yield tips over the symbolic 3% mark, it may mark the end of the ‘TINA’ trade (‘There Is No Alternative’). Investors that have gravitated to stock markets as bond yields dipped now have a broader range of options, particularly as inflation appears to be nearing its peak.

However, the inflation outlook is still uncertain and futures markets continue to suggest bond yields could rise further. There is increasing value in stock markets today, though volatility is likely to continue. This should mitigate any significant moves back into government bonds.

There are increasing recessionary pressures, with economic growth dropping in the UK, US and Europe. As it stands, the US and UK are both expected to grow by around 3.7% in 2022, while the Eurozone is expected to expand by 2.7%. There are material risks to these forecasts from geopolitical uncertainty, rising interest rates and a high cost of living.

There are still opportunities for investors and the corporate sector remains in robust health. However, selectivity is important with a focus on those sectors and companies that can continue to thrive in a tougher environment.

For more information on Evelyn Partners, please head to www.evelyn.com

This episode was recorded on 13/05/22

Capital at risk. Please remember the value of investments and the income from them can fall as well as rise and investors may not receive back the original amount invested. Past performance is not a guide to future performance.

This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.

Smith & Williamson Investment Management LLP

Authorised and regulated by the Financial Conduct Authority. Registered No 580531

Throughout this episode, Julia and Anthony describe some of the key changes to capital gains tax and inheritance tax that have been proposed by various bodies such as the Office of Tax Simplification, and explore how this could potentially impact you and your family.

Julia Rosenbloom and Anthony Whatling, Partners in our Private Client Tax Services team, discuss the possibility of tax reform in the UK. Throughout this episode, Julia and Anthony describe some of the key changes to capital gains tax and inheritance tax that have been proposed by various bodies such as the Office of Tax Simplification, and explore how this could potentially impact you and your family.

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CREDITS:

Hosts: Julia Rosenbloom, Anthony Whatling
Producer: Laura Burrows

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Want to know more about our Private Client Tax Services and how we can help you? Head here for more info https://bit.ly/3wPQy5Y

This episode was recorded on 26/05/2021

This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.

Tax [and Government] legislation is that prevailing at the time, is subject to change without notice and depends on individual circumstances. Clients should always seek appropriate tax advice before making decisions. HMRC Tax Year 2021/22.

Following on from our previous episode with Mo Pasricha from Mackrell, in this episode we are join again by Mo and Manisha Hurchurn from Mackrell, to discuss the importance of family law issues.

[2.29] Co-habitation agreements

Scenario: A professional athlete is considering moving their partner into their property. They potentially could be earning millions, own a big house, could be mortgage free. They think everything is fine and will remain the same when they move their partner into the property.

This may not the case. This scenario is suggesting to the partner; this is your home, this is as much of yours as it is mine, you can do what ever you want here, this is 50/50, it’s my name on the legal deeds etc. If the relationship takes breaksdown, this could lead in giving the partner an interest in the property.

It would be very wise to seek advice on entering into a co-habitation agreement. You would be recording your intentions of moving in together. Intentions can be very broad or specific to what this contains such as, you can bring pets into the house, no legal right to the property on the breakdown of the relationship etc. There are different rights for co-habiting couple verse a married couple.

[10.32] If relationship breaks down with children involved

Child maintenance service to regulate payments based on gross income. There is a cap of gross annual income of £156k per annum, that is the total amount the CMS (Child Maintenance Service) will look at. If the footballer is earning a significant amount, on top of the CMS calculation, the mother can go through the family courts to get a top up of child maintenance which can be very significant. Included in that application, mother can also ask for a car, house, sump sum to pay credit card debts etc for the benefit of the child until they are 18 or going to university.

If the player is no longer earning the significant amount, the CMS will automatically be re-calculated, however if they are receiving the top up maintenance, they will need to go back through the family courts to have the amount reviewed.

[18.30] Pre-nuptial agreements

Needs to be completed 28 days before you get married. It is binding contract, however not binding by UK laws yet. It shows good intention and if you satisfy all the criteria tick boxes that law commissioner report states, that will validate a pre- nuptial, it will stand up.

[22.22] Post-nuptial agreement

Is an agreement you enter post marriage. Perhaps you didn’t think about it before marriage or perhaps enough time to enter a pre-nuptial before marriage. You can then do it after the wedding. If you do a post-nuptial after the wedding and because you are married - it makes it more of a contract then the pre-nuptial agreement.

[23.43] When is it the right time to make a Will?

The importance of getting a Will in place is making sure you’re going to decide who is going to deal with your estate if the worst was to happen. There are lots of gifts and exemptions you can use under the rules which you can utilise if you didn’t have a Will in place.

There can be very intricate structures, you really need to think about who the right person is e.g. lawyer or accountant to be appointed as an executor of the estate.

If an athlete is not getting a Will to then plan their inheritance tax (IHT) in the future, they could be missing out and paying 40% to the government through IHT.

If you are getting divorce you need to review your Will. If you don’t have a will, everything will pass to your spouse under the rules of intestacy.

***LINKS***

Sports & Media podcast show page https://bit.ly/2TsBUAx

Smith & Williamson Sports, Media & Entertainment Services https://bit.ly/3e57L23

Mackrell Solicitors https://www.mackrell.com/ & https://www.mackrell.com/for-you/family/

IHT article: https://bit.ly/2WQeK9m

This episode was recorded on 16/12/2020

This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if...