‘Taxpayers now get a far worse deal’: HMRC pushed on IHT gifts as £1,000s is missed out on
The Sunday Express looks at how Inheritance tax (IHT) costs can be managed using gift-giving and other estate planning efforts.
However, families are struggling to utilise these options according to new research. The article suggests taxpayers only saved £30million in IHT by making gifts to family and friends last year. This is only 0.6% of the £5.3billion which HMRC brought in through IHT last year, suggesting there is much greater scope for the allowance to be used.
You can find our thoughts on how to mitigate your IHT liability here.
Breaking up is hard to do, especially if you forget the pension
This article in the Times covers how pension assets are becoming increasingly valuable, yet the number of divorcing couples forced to share their pots has fallen.
Ministry of Justice figures show that 10,500 people were ordered to share their pensions in 2020. This is the first time the figure has fallen below 11,000 in the past decade. It is down almost a third on the 15,000 people who were told by the courts to split their pensions in 2019.
You can find our thoughts on how pensions could be looked at when divorcing here.
A hedge fund revival? Industry hopes a dismal decade is over
This article in the Financial Times looks at how Hedge Funds had a decent 2020, returning 11.8% and attracting £18.4 bn in the first half of 2021.
“They’re bloody costly,” Chris Ailman, chief funding officer of Calstrs, the $300bn Californian pension plan, told CNBC this summer time. He feels that they’re largely in a position to continue to grow due to their attract over their substance. “Folks love the concept of being in a hedge fund as a result of it sounds mysterious and superior . . . That doesn’t imply it’s going to supply long-term sustainable outcomes.”
You can find our thoughts on how to best invest here.