Both written and unwritten constitutions are under threat with the pillars supporting them under attack, as populist forces gather, chipping or pulling apart conventions and traditions embedded across Western democracies. Looking back at periods of calm, today’s investors are being challenged in a way unimaginable a decade or so ago.
Prior to the EU referendum result, investors had witnessed an extremely volatile environment in the first half of 2016, attributable to a complex array of factors. Global equities retreated significantly in February due to concerns surrounding a slowdown in global growth, exacerbated by the weakness in Chinese economic data and Yuan devaluation, as well as a persistently low oil price, which markets seemed to interpret as a sign of scant consumer demand. All of this took place against a backdrop of rising US interest rates, which resulted in an unlikely scenario of monetary tightening in the world’s largest economy, with the remainder of the globe struggling to generate meaningful growth of any sort. Risk aversion and volatility reached near-term highs, although this now pales into insignificance when compared to the instability created by the Brexit vote in the final weeks of June, particularly for UK investors.
In the latest edition, Jack Rawcliffe looks at the implications of a UK exit from the EU, Stefani Rogers reviews the dividend tax regime, Amelia Sexton discusses the impact of the UN Paris agreement, Neil Sargeant looks at the latest round of proposed changes to pensions and Aram Kupelian considers how the new inheritance tax regime will work. Finally, Reece Biggadike evaluates end of tax year planning opportunities.
Up until 6 April 2015, pension contribution limits, known as the annual allowance, were relatively simple.
In essence you could contribute up to £40,000 (gross) per annum either via an employer, individual or a combination of both. In addition, where you had unused annual allowance (AA) from the previous 3 tax years, you could carry forward the unused allowances to the current tax year.
From October 2015, existing pensioners and those retiring before 6 April 2016, will have the option of making additional National Insurance Contributions (Class 3A) in order to increase their state pension by a maximum of £25 a week / £1,300 a year.
The income is taxable, linked to inflation (CPI) and 50% can be inherited by a surviving spouse. The scheme operates like an annuity in the sense that the individual pays a lump sum in exchange for a guaranteed income for life. The amount of the lump sum required will depend on the individual’s age.
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Holden & Partners is recognized as one of the leading Independent Financial Adviser (IFA) companies in the UK, having recently been named as a Top 25 IFA by thewealthnet.com for the fifth time in the last six years, as well as being named as a New Model Adviser Top 100 firm for the second year in a row.
These awards, alongside the Chartered Insurance Institute Chartered Financial Planner Firm status demonstrate our recognition for high quality financial planning, expertise, professionalism and commitment to delivery and service to our clients.