UK Onshore Investment Bonds
Wednesday 13th October 2021
Katy Baxter
When you buy an investment fund, you may choose to do so via a wrapper which helps confer certain tax benefits on the income and capital gains which you receive. A UK Onshore investment bond is one of the wrappers you can choose. UK Onshore Investment bonds are generally available for a single premium – that is, a one-off lump sum. You can choose how that money is invested from a range of options that combine a variety of different asset classes within the one fund. Life companies offer external links to fund management houses, increasing your scope to mix, match and specialise within your portfolio. Funds within a UK Onshore investment bond benefit from a non-reclaimable 20% tax credit.…
Tax hikes to raise money for social care
Tuesday 14th September 2021
In a move designed to fund the spiralling cost of social care, the Government announced a controversial increase to National Insurance contributions (NICs) in the form of a 1.25% “Health and Social Care Levy”. Although pensioners do not pay NICs, workers of state pensionable age will have to pay the levy, which will take effect from April 2022. The Government announced an increase of 1.25% in tax on dividend income. This means that tax on dividend income will increase from 7.5% to 8.75% for basic rate taxpayers, from 32.5% to 33.75% for higher rate taxpayers, and from 38.1% to 39.35% for additional rate taxpayers. At present, there appears to be no change to the annual tax-free dividend allowance of…
Inheritance Tax (IHT) bills on the rise – especially if you live in the South
Tuesday 24th August 2021
Katy Baxter
The human cost of COVID has been huge and will have an impact on families and people’s lives forever. The financial impact has also been felt by many and although likely to be temporary, the government finances have been hit hard and somehow this debt will need to be repaid in the years to come. To not hinder economic recovery and growth, Rishi Sunak has limited fire power at his disposal. However, in March this year he already showed part of his intent by raising money via taxes when he froze two IHT thresholds for the next five years. This means the IHT Nil-Rate Band is remaining at £325,000 and the Residence Nil-Rate Band will be kept on…
Growth & Inflation are on the rise
Tuesday 13th July 2021
Fed’s hawkish tilt: Prospects for inflation and interest rates continued to garner headlines during June as investors digested news of rising prices alongside a more hawkish tone from the US Federal Reserve (Fed). Share prices were knocked by speculation that gathering inflationary pressures could encourage central banks to taper off their economic stimulus measures and consider raising ultra-low interest rates. Amid growing optimism about the global recovery, Brent crude oil rose to US$76 per barrel – its highest level since October 2018 – during the month. Rising prices: Although Fed policymakers have continued to underplay concerns over inflation, investors were rattled by the news that the annualised rate of US consumer price inflation had surged from 4.2% in April to…