Flowing With The Tide

Posts Tagged ‘investments’

Equity markets are wobbly, the uk plc has overspent & many individuals are not sure of the future as far as work, money and finances are involved. It might all seem somewhat uncertain & indeed the United Kingdom has a lot of anguish to bear before we begin to get the books in order. Although the new coalition government will start to tackle the problems facing the economy we can all take a little time to go over our own individual finances.

I believe that where change comes about, opportunities are present. The emergency budget will close off many loopholes as far as financial planning is concerned, but others may open up to encourage entrepreneurship & long term saving. Personally if you can make the best investment return for the level of risk you are able to accept , blended with applying tax breaks and low cost investment products, 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 truer. Apparently a large number of individuals with buy to lets have put them on the market, hopefully to sell before the emergency budget in 3 weeks time. The reason is the potential change to capital gains tax. Great, but what if the government decide to backdate CGT to the Sixth of April. In reality these investors should have taken the possibility of CGT into account when planning their investment portfolios. Property is an ill-liquid asset it cannot be easily disposed of. Due to the increase in property values over the last 10 yrs some investors will face potential CGT bills when they least expect it.

A good financial adviser will be able to indicate the Disadvantages and Advantages concerning different types of investments. This should include the investment risks and potential tax implications.

Consilium Asset Management is an IFA in Bristol.