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What was in the weekend’s papers? (06/07/2020)

Category: News

SUNDAY TIMES

Paying your tax now will save pain in January

Tempting though it is, delaying paying your tax bill this month means facing a double bill in six months’ time, accountants warn.

COMMENT: We usually operate based on the assumption of “tax-deferred is tax saved”. Although it is correct that deferring means a bigger bill later when you add the potential tax payment for that point. However, as long as you are aware of the liability and budget for it there are advantages to deferring. This is especially the case where cash flow has been affected due to COVID 19.

Hargreaves has giant stake in best-buy fund

Platform owns 25% of an investment it tips to customers, raising fears of conflicts of interest.

COMMENT: Whilst it is no guarantee, the fewer the financial incentives there are for someone to recommend a course of action, the more likely it will have been recommended based on its individual merits. We are duty-bound to disclose any conflicts of interest which may affect our advice and manage them. This is so any advice we give is suitable.

Inheritance battles soar as house prices rise

The number of inheritance battles at the High Court hit an all-time high last year.

COMMENT: This shows how important it is to have an up to date will.

We’re putting more away, but getting little in return

Savers put away £57bn during the first three months of lockdown, but earned little in interest as their money was hit with bigger rate cuts than at any point in the past decade.

COMMENT: for many cash is king. For those who can take a long term view, investing in a diversified portfolio gives the best chance of producing inflation-beating returns.

The Telegraph

Why it’s not too late to buy 2020’s best performing funds

Funds investing in America and China have starred while British portfolios fall behind

COMMENT: When recommending funds the evidence suggests that focusing on much longer-term measure of performance is better. No one knows what will happen over the rest of the year. The market conditions which these funds prospered from may not be replicated. The best course of action is to spread your money prudently across a variety of investments.

‘Bank of Mum and Dad’ lending to surge by £700m as post-Covid market shuns first-time buyers.

First-time buyers have been disproportionately slammed by the pandemic and new lending restrictions. Their parents will come to the rescue

COMMENT: While it is important to help our children, we need to know what the ramifications are. We always look to run through the numbers with clients to assess the impact of giving money away. Sometimes we encourage it to decrease the amount of tax payable on death.

SUNDAY EXPRESS

Inheritance Tax: You could legally ‘escape’ IHT – but there’s an important factor to note

INHERITANCE TAX (IHT) is the tax on an estate of a person who has died. While Inheritance Tax won’t always need to be paid when a person dies, in certain cases it will – and some may want to look for ways in which they can legally reduce an IHT bill.

COMMENT: This article looks at IHT and how to plan for it. We have a post on this here.

If you want to know more about how anything we covered could affect your planning, please feel free to book in a free no-obligation chat here or get in touch.

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