Capital gains tax refers to the levy on certain investments, property or possessions when you sell them for a profit. If you buy a second house for £100,000, for instance, and later sell it for £150,000, then you have made a capital gain (profit) which will likely be taxed. Yet how does capital gains tax (CGT) work, exactly, in the UK in 2021?…
Did you know there is a limit to how much you can save into a pension? It is called the lifetime allowance, and in 2020-21 it is set at £1,073,100. This may sound like an unattainable goal for many readers (especially those on lower salaries starting in their careers), yet it is not unheard of for individuals to inadvertently exceed this limit – without even realising. Should this happen…
Inflation is sometimes known as the “silent killer” of savings. Your bank statement, for instance, will likely show the interest generated from your regular savings account (e.g. 0.5%) – yet it will probably not tell you the rate of inflation during that period. Inflation refers to the rising cost of living – i.e. goods and services – and thus gradually reduces the spending power…
Two key announcements on pensions have been made in the last 4 months. First of all, from October 2020 the UK state pension age was raised from 65 to 66. This was announced in the Pensions Act 2014, of course, so does not come as a surprise – yet it will have significant implications for pension planning going forwards. The state pension age (SPA) will later rise to 68 in 2028…
Did you know that, in 2020, the US stock market would have hardly grown – had it not been for the presence of the “Big Five” tech companies (Amazon, Google, Facebook, Microsoft and Apple). The S&P 500 in the USA, for instance, has continued to increase in value over the last twelve months despite COVID-19 – largely because it is very tech-heavy…
Even with an occasional look at the headlines, you’re likely to see that the pound changes value regularly. Vaguely, you may think this affects you somehow – but how exactly? Naturally, if the pound lessens in value against other currencies then it means your overseas holiday is likely to be more expensive (since a pound “buys” fewer Euros, dollars etc.)…
Material gifts are often welcome at Christmas time – but what about more disposable income in your pocket, especially after a tumultuous year in 2020? Taking a few hours to check your tax plan can be the perfect opportunity to do so – especially the quieter moments of the December break. This is especially since the average UK household can expect to pay…
COVID-19 has overshadowed almost all aspects of life in 2020 – including retirement planning. How might the pandemic affect your plans (and ability) to retire, especially for those looking to start accessing their pension savings within the next 12 years? Undeniably, events this year have presented additional challenges to these people. These will need to be carefully…
What’s the difference between a financial planner and an accountant? Why might you use one over the other? In short, the latter helps with auditing and financial statements – such as your tax self-assessment leading up to the financial year (April in the UK). The former helps you with the big questions of how to build and protect your wealth, covering areas such as…
Taking out a policy for life insurance, critical illness cover (CIC) or income protection is a big decision. Not only is there a monthly cost to factor into your finances, but there is also a range of checks which are required to ensure that the protection in question meets your needs. In this article, our team here at Elmfield Financial Planning…
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