Benefits of Independent Advice
Global Equity markets are wobbly, the UK has spent too much money & many people are unsure of the future as far as jobs, money & finances are involved. It might all seem a tad bleak and indeed the UKPLC has a lot of anguish to bear before we start to get the finances in order. Although the new coalition government can start to address the problems facing the economy we can all take time to re-examine our own individual finances.
I truly believe that where change happens, chances are present. The emergency budget may close off some loopholes as far as tax planning is involved, but others may become available to promote entrepreneurship and long term saving. Personally if you can make the most acceptable investment return for the level of risk you are able to accept , blended with using tax breaks and low cost investment vehicles, then over the long term you should see the benefits.
The old phrase “don’t let the tax tail wag the dog” has never been closer to the truth. Apparently a large number of individuals with buy to lets have put them up for sale, possibly to sell before the emergency budget in three weeks time. The reason is the possible modification to capital gains tax. Great, but what if the government decide to backdate CGT to the 6th of April. In reality these investors should have taken the possibility of CGT into account when designing their investment portfolios. Property is an ill-liquid asset it cannot be easily disposed of. Due to the growth in property values over the last ten yrs some investors will face potential CGT bills when they least expect it.
A competent financial adviser should be able to point out the possible pitfalls concerning different types of investments. This should include the investment risks and potential tax implications.
Consilium Asset Management Ltd is an IFA in Bristol.
