Spending the calm studying the storm – Hilton Sharp & Clarke IFA’s

They say that change brings opportunity, that in moments of turmoil the astute can see the path to profit. They, perhaps, were referring to slightly less change than Brexit.

With cabinet ministers resigning and returning seemingly every other week, the prime minister’s deal with the EU facing a turbulent path through parliament, the value of the pound fluctuating and jittery investment markets, the astute need to be working particularly hard. Trying to devise a short- to medium-term strategy that allows for all the possible outcomes of the UK’s departure from the EU is a Herculean task.

Despite all the furore, we now have the Chancellor’s 2018 Budget, so we have a clear sense of changes to the tax system coming in April (bar another general election, of course). With Mr Hammond receiving better-than-expected data from the Office for Budget Responsibility ahead of his statement, those changes are less drastic than many people feared. There were no tax rises, no raid on pensions allowances and no drastic overhaul of the inheritance tax system.

Instead, Mr Hammond brought forward increases to the personal allowance and the higher rate threshold, giving money back to most taxpayers across the country. You could be forgiven for thinking that it was all good news.

However, a lot of rates and thresholds were also frozen at current levels. Whilst that isn’t a tax increase, it does mean more revenue for the Treasury as inflation continues to have an impact. The effect of frozen thresholds isn’t always immediately clear.

This is why, in the feature article of our latest newsletter, ‘Headline increases and frozen thresholds in the 2018 Budget’, we look at how those giveaways play out when applied across the tax system. Those increases to the personal allowance and higher rate sound like unmitigated good news for taxpayers across the country, but you may not end up with as much money in your pocket as you thought.

Our other stories include:

  • Lessons from a record bull run
  • Don’t ignore your credit report
  • Growing ethical investment for sustainable returns
  • Annuity options for long-life planning

Keith BonnerDirectorand lead Independent Financial Adviser at HSC Financial Services with offices in Brighton, Haywards Heath and Shoreham comments “Our next update will come in the Spring, shortly before the current deadline for the UK to leave the EU. We look forward to discussing what that may bring with you then.”

If you would like to know more about any of the topics raised in this newsletter, please call us on 01273 710404 or email us by clicking hereWe will get in touch as soon as we can.