Insights

As the new tax year starts we look forward to what 2019 holds. Our technical team has put together a handy guide of some of the key information you will need to consider when advising your clients.

Markets composed themselves in March, as the US Federal Reserve (Fed) capitulated to demands to pause the interest-rate hiking cycle and investors’ fears about economic growth receded. In contrast to the abrupt change of heart by Chairman Jerome Powell, our investment strategy and views on the underlying economy are unchanged. 

As we approach the end of another tax year, Julia Peake from Sanlam discusses what you need to look out for to ensure clients remain on track.

Tax year end is fast approaching and we’re here to support you and your clients at this busy time. We’ve outlined the important deadlines for sending us applications and other top-ups to ensure your clients’ money is invested for this tax year.

Since the Federal Reserve (Fed) paused interest rate hikes, markets have been taking a ‘wait-and-see’ approach, leading to a recovery in equity valuations and a period of relative calm. But with inflation pressures still evident in both the US and UK, and the outlook for growth looking uncertain, our focus is on three potential scenarios as the year progresses.

The Individual Savings Account (ISA) allowance rose to £20,000 in the last tax year (2017-18), by far its most generous level since the ISA was launched 20 years ago. But are you making the most of this allowance? And if not, why not?

Most people accept that tax is a fact of life, and that while there might be ways to minimise it, the more you earn, the more you owe. But when it comes to Inheritance Tax (IHT), many clients feel a sense of injustice. After all, they’ve dutifully paid their taxes, and diligently saved so as not to be a burden on the state.

This year managed to get off to a positive start with equity markets recovering some of the losses endured at the end of 2018. This recovery was largely due to the US Federal Reserve (Fed) taking a U-turn on monetary policy.

Julia Peake, National Account Manager, reflects on a report published by the Department for Work & Pensions and discusses how we can engage the self-employed with their pension savings.

Despite the negativity surrounding Brexit, as well as other recent economic uncertainty, investors and businesses have been enjoying excellent conditions for the last few years. Low inflation, low borrowing costs and a rising equity market with low volatility have all been features of the most recent economic cycle.

There is thought to be somewhere between £15bn and £77bn in unclaimed money sitting in forgotten investments, pensions, bank accounts and a whole range of other places in the UK. So, how can you go about finding out if any of it is yours?

We’re used to the ups and downs of different business cycles, and we’ve come to expect and prepare for them. But with unusual circumstances such as a trade war and the reversal of quantitative easing, the outlook becomes harder to predict. As risks build across the global economy, here are the key things we’ll be looking out for in 2019.

Life has become increasingly expensive for young people and for many the pressure of high property prices, expensive university education and the need to save for their own retirement is overwhelming. While the older generation, who benefited from rising house prices and final salary pensions, have arguably ‘never had it so good’, their children and grandchildren are struggling.

According to the financial forecasters at the UK Office for Budget Responsibility, £5.4 billion will be raised by HMRC from Inheritance Tax (IHT) in the coming financial year. More people have found themselves subject to IHT as the value of property has increased, but one way you can limit your liability is to invest in companies listed on the Alternative Investment Market (AIM).