Archived articles
Although the content of the article(s) archived were correct at the time of writing, the accuracy of the information should not be relied upon, as it may have been subject to subsequent tax, legislative or event changes.
A word from the office - September edition
I hope everyone enjoyed the summer holidays and perhaps some warmer climates! Some of our team have already taken their breaks, while others still have them to look forward to. As we head into the last part of 2024, you may have started to notice the darker mornings and darker nights creeping in, we sure have. However, that doesn’t mean it’s not still a perfect time to look at the financial markets and what we can expect for the rest of the year and what that means for you.
Monthly Headline from Quayside
With the results of the General Election in July, this seems the best starting point when looking at the financial markets and the impact this may have on peoples finances.
While immediate changes are minimal, further clarity on tax and spending changes will be provided by the Chancellor in the Autumn Budget.
Labour’s Manifesto Pledges:
Ruled In:
- Abolishing non-dom tax status and associated tax benefits (e.g., IHT avoidance through offshore trusts).
- Implementing VAT on private school fees and removing business relief for private schools with charitable status.
- Closing the private equity “carried interest” loophole.
- Increasing stamp duty on residential property purchases by non-UK residents.
Ruled Out:
- Increases in tax for ‘working people’ (e.g., headline rates of income tax, National Insurance contributions, and VAT).
- Capping corporation tax at 25%.
The new Government is also expected to address the fiscal situation more fully at the budget, potentially including:
- Fuel duty increases.
- Tobacco and/or alcohol duty increases.
- A review of council tax.
The manifesto was silent on wealth and investment taxes, but there is speculation about changes to some of the following:
- Some Inheritance Tax (IHT) relief changes.
- Further tax on second homes.
- Higher tax on capital gains.
- Changes to pensions tax relief and tax-free allowances.
- Revisions to Business Assets Disposal relief.
Labour has committed to a full review of the pensions landscape to “deliver better outcomes,” which could include extending auto-enrolment to lower earners, improving pension outcomes, consolidating workplace pensions, and investing in UK assets/markets.
Additionally, Labour aims to make the UK a global hub for green finance activity and prioritise the country’s sustainable finance policies. Expectations on the Financial Services sector will be high, with changes anticipated to the green finance regulatory framework.
Labour also plans to kickstart economic growth through a new 10-year industrial strategy, creating a National Wealth Fund to invest in future industries and establishing the Office for Value for Money among other measures.
While UK economic growth shows some signs of picking up, the Office for Budget Responsibility’s latest growth estimates still seem optimistic. Achieving a further growth upgrade may be challenging. Two cost-free policies to boost economic growth – planning reforms and better trading relations with the EU – are likely to take time to be successful. The short-term reaction in UK equity markets is likely to be positive due to the clear outcome and resulting policy certainty, consolidating the positive view on UK equities.
Our Commitment: We want to support our clients through all of the changes. As our saying goes, “We can’t control the wind, but we can adjust the sails.”
You can find more information on this subject by following this link.
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.
Top Tip from Alex
Ignore the noise and keep working towards those goals. New Governments often make people nervous but at Quayside we’ve been at this for a decade now. Over that time, we have seen significant political change both nationally and globally and with that has come change. We have seen changes to pension allowances, ISA allowances, income tax rates and Capital Gains Tax rates, Inheritance tax allowances and more. All of which we have ensured we understand in detail, so you don’t have too.
The famous saying goes, the only thing certain in life are death and taxes but as the Quayside motto goes, ‘We can’t control the wind, but we can adjust the sails’. A Government suggesting change to the tax regime is business as usual and as soon as we know how any changes will impact you as clients, we’ll be sure to let you know, one mistake we hope you all avoid is making changes in anticipation of things that aren’t likely to change.
Last Month’s Headline
Setting Financial Goals – Top tips for setting financial goals. You can read more on this topic here.
Further Insights
If you’re interested to read further, we also have more useful information on our website which can be found here.
Charity News
Victoria and Lucy are taking on Shine Night Walk in London and walking a full marathon for Cancer Research on 21st September 2024.
*1 in 2 people will be diagnosed with cancer in their lifetime. Every single pound you donate makes a difference to Cancer Research UK’s groundbreaking work. Donate to their Giving Page today and help bring forward the day when all cancers are cured.
* Source Cancer Research UK dated 27th July 2021.
Contact your Adviser
If you would like to discuss more about this month’s topic, please book a call with your adviser here.
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