Pension transfers skyrocket

By Richard Jackson | 22nd June 2018

Pension transfers out of the private sector final salaries boomed in 2017. There was a dramatic increase in the value of number of transfers out of defined benefit (usually final salary) pension schemes in 2017. A recent Freedom of Information (FoI) request to the Financial Conduct Authority (FCA) revealed that the £20,800 million was transferred…

Interest rate rises are increasingly difficult to predict.

Interest rate rises prove hard to predict

By Richard Jackson | 19th June 2018

The Bank of England did not raise interest rates in May, despite earlier suggestions that it would.  About four years ago a member of the Treasury Select Committee compared Mark Carney, the Governor of the Bank of England, to “an unreliable boyfriend”. The remark was prompted by Mr Carney’s record of talking future interest rate…

Savings tax review aims to simplify complex regulations

Savings tax review searches for simplicity

By Richard Jackson | 15th June 2018

The Office of Tax Simplification (OTS) is carrying out a savings tax review. The OTS is looking at the way in which savings and investment income is taxed, which can be very complicated. According to its paper, published in May 2018, “the interactions between the [tax] rates and allowances is sufficiently complex at the margins…

Mainland Chinese shares join the MSCI index

By Richard Jackson | 15th June 2018

Important changes affecting market indices for Chinese shares took effect in June, which could affect emerging market funds. On 1 June, the index provider MSCI added 233 domestic Chinese shares to its emerging market and global indices. MSCI has some of the most widely used indices for measuring the performance of emerging markets, with the…

Baby boomers could face the brunt of proposed new tax changes

Could major tax changes help young people?

By Richard Jackson | 12th June 2018

A new report has proposed major tax changes by taxing baby boomers more,  to help resolve major issues around what’s called  intergenerational fairness. The report, published by the Intergenerational Commission in May, offers ten policy recommendations which would represent a radical overhaul of the UK tax system. Examples include replacing inheritance tax with “a lifetime…

Increasing inheritance benefits for couples

By Richard Jackson | 28th May 2018

Couples could now save an extra £20,000 of inheritance tax (IHT), as the residence nil rate band (RNRB) increased in April 2018. The RNRB was increased at start of the new tax year and it is due to increase by £25,000 in each of the next two years, reaching £175,000 in 2020/21. It will be…

The threshold for student loan repayments rose in April - but it's not all good news.

Higher threshold for student loan repayments

By Richard Jackson | 24th May 2018

The income threshold at which student loan repayments begin rose at the start of the new financial year on April 6. English and Welsh students who started their courses after 31 August 2012 can now earn £25,000 a year – up from £21,000 – before they have to start repaying their student loans. The increase could provide…

Tax return advice from Jackson Toms

Taking early advice on your tax return

By Richard Jackson | 20th May 2018

HMRC is starting the tax year with their annual reminder to submit your tax return. HMRC’s reminder might seem early, but its statistics show that 750,000 people (6.5%) missed the deadline for 2016/17, potentially facing an immediate £100 penalty, even if they had no outstanding tax to pay. Anyone with a 2016/17 return still outstanding…

How useful is the Dow Jones index

How useful is the Dow?

By Richard Jackson | 16th May 2018

The Dow Jones industrial Average – the Dow – is a well-known part of the investment market, often quoted by news sources. But what does it mean, and is it useful when making investment decisions? The Dow was created in 1896, and is arguably still used today mainly thanks to history or habit. There are…

The UK inflation rate is falling

Pressure is dropping on inflation rate

By Richard Jackson | 10th May 2018

The UK inflation rate is falling faster than expected, as the March figure for the Consumer Price Index (CPI) was 2.5%. This March figure, published in mid-April, surprised forecasters, who had predicted annual inflation would remain at 2.7%, as in February. That February figure was itself a surprise, as the forecasts had predicted 2.8%.  The…

International investments and Brexit

By Richard Jackson | 24th April 2018

With Brexit now less than a year away, how insular are your investments? Brexit – or more accurately the start of the transition/implementation period of the UK leaving the EU – begins on 29 March 2019. By the end of the following year, the UK’s remaining links to the EU are due to be cut.…

Pension planning

What does the pension lifetime allowance buy?

By Richard Jackson | 23rd April 2018

Pension planning – it is worth looking at what your pension pot could buy for your retirement. The importance of pension contributions has been bolstered by the rollout of auto-enrolment pension schemes. However, it is not as clear what your savings will give you when you come to retire. For example, Louise, a healthy, non-smoking…

ISA planning

Taking the early view on ISAs

By Richard Jackson | 19th April 2018

There are advantages to planning your ISA investments around the start of the tax year. With an ISA, all the taxation benefits occur afterinvestment is made, yet the focus is often on year-end contributions. Various articles on ISAs filled the weekend press in March, and are set to re-emerge like a financial sign of spring…

New risk criteria for venture capital schemes

By Richard Jackson | 17th April 2018

Important changes for venture capital schemes and enterprise investment have recently come into effect.  New ‘risk-to-capital’ conditions apply to investments in venture capital trusts (VCTs), enterprise investment schemes (EISs) and seed enterprise investment schemes (SEISs). The changes took effect on 15 March 2018, when the Finance Act 2018 received Royal Assent. Broadly speaking, an EIS…

A simple Spring Statement

By Richard Jackson | 13th April 2018

The Chancellor’s Spring Statement on 13 March was, as promised, a low-key event. Last autumn, Mr Hammond announced he would have only one ‘fiscal event’ each year – an autumn Budget. The Spring Statement would become a response to revised projections from the Office for Budget Responsibility (OBR). The Treasury has had to provide an…

A refund for power of attorney

By Richard Jackson | 26th March 2018

You may be due a refund if you have registered a power of attorney in recent years. It is not often the government offers a refund because of overcharging, but last month it emerged that the Office of the Public Guardian (OPG) had been levying excessive fees for four years. The fees related to the…

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