Welcome to the second edition of the AFH Wealth Management E-Newsletter. In this edition we will be looking at some of the impacts following the emergency budget on 22nd June.
Prior to the budget, we were warned of life changing policies that needed to be made to correct the UK debt problem, so it was expected that the budget might be full of tax raising measures. However, the budget didn’t present too many surprises, with some immediate financial burdens, like the increase in CGT and others deferred until next year like the rise in VAT. Non-the-less, the budget presented some interesting financial planning opportunities.
The FTSE reacted well to the emergency budget and the aggressive way that the new coalition Government is tackling the national debt. However with a lack of confidence of the credit worthiness of national states due to the sovereign debt crisis, the FTSE saw a fall of almost 8.4% from 22nd June to the 1st July. With confidence now being restored and as September marks the end of the summer holidays for many, city traders are back at their desks and on the search for value which is leading to a steady rally in the FTSE. As at the 10th September the market bounced back by 14.5% from its lows on 1st July.
I hope that you find our E-Newsletter interesting. If you would like any additional information on any of the topics please don’t hesitate to contact us.
Further information about our services and a full market commentary can be found on our website www.afhifs.co.uk
Kind regards,
Alan Hudson
Managing Director |
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Tax planning to the fore
June’s Emergency Budget means that tax planning is more important than ever.
In the fortnight before the Emergency Budget, the Government issued many warnings of a period of austerity and the pain that was to come. In the event,...
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The Emergency Budget
The first Budget after an election is usually the most taxing. George Osborne did not stray from tradition.
There was some immediate tax pain, but much of it was deferred:
VAT The standard rate VAT will rise to...
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Are you ready for 31 October?
If you prefer to complete your 2010 tax return on paper rather than online, then HMRC must receive the return by Sunday, 31 October 2010. Miss that date and you face an automatic penalty of £100 unless you subsequently file online, which gives you...
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Anyone for some income?
The base rate has remained at 0.5% for well over a year now. There are few signs that it will rise much in the near term.
The Bank of England cut the base rate to 0.5% in March 2009. The Bank’s calculations, revealed in its May...
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Did you know that Government contributions to the child trust fund (CTF) scheme will end in December?
From 1 August 2010 the Government cut initial payments to a CTF from £250 to £50 and reduced the additional payment by the same amount. Payments at the age of seven, which had been £250, stopped. From the start of 2011, no new CTFs...
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Good things in small packages?
Is smaller better? In the wake of the BP disaster, SME (small and medium enterprises) funds can look alluring.
Companies with the largest market capitalisation have a lot to offer. They are frequently well diversified: internationally,...
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Socially responsible investment
Socially responsible investment (SRI) is growing in popularity, from investing in clean power to shunning child labour. It is meant to be good for everyone – but is it bad for your rate of return?
Early funds selected stocks to buy...
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A bad year for trustees
2010 is proving a taxing year for trustees.
On 6 April 2010, the main income tax rate for trusts which are not required to pay income directly to beneficiaries rose from 40% to 50% (32.5% to 42.5% for dividends). Before the change came...
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Battle of the indices: CPI vs RPI
One surprise in the Emergency Budget on 22 June was the Government announcement that it would use the consumer prices index (CPI) rather than the retail prices index (RPI) for benefit, tax credit and public sector pension increases from 2011.
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No more annuities!
The Emergency Budget signalled an end to the effective requirement to buy an annuity income with your pension fund.
If you have not yet reached the age of 75, then you may never have to buy an annuity or otherwise take an income from...
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Budgeting for Britain's future - and yours
The UK’s Emergency Budget aims to raise £40 billion, and forms part of a plan to significantly reduce the nation’s record £155 billion deficit within five years. But what does it mean for savers?
An end to...
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The last years of the 'cheap' degree?
The 2010/11 academic year could be one of the last before a major overhaul in university funding.
How should higher education in England be funded? Last November the previous Government asked Lord Browne to investigate and make...
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