Moore Kingston Smith Financial Advisers: Summer 2021 Bulletin

13 July 2021 / Insight posted in Articles

With house prices continuing to rise and following the Chancellor’s freezing of the inheritance tax (IHT) threshold for the next five years, increasing numbers of estates will become subject to IHT. Yet more than 50% of adults over 55 in the UK do not have any idea of how their estate will be taxed. While we may not relish looking towards the end of our lives, estate planning can help support your loved ones when you are no longer around. This edition looks at the current inheritance tax rules and how they are likely to change in the near future.

Other stories for this edition include:

  • Tax planning for families: as the freezing of several key tax thresholds heralds a decline in real income over the next five years, we look at ways for couples to maximise the use of tax allowances and reliefs.
  • Portfolio rebalancing: choosing a set of investments for your portfolio may seem like a short-term process, but investments need to be curated and reviewed. Allowing portfolio to coast could mean the erosion of the diversity you thought you had put in place, potentially weakening your position.
  • ‘Greenwashing’ warning: as growing numbers of ESG funds promise investors both returns on their money and support for businesses concerned with sustainability and ethical practices, be warned. While legislation takes a while to catch up, you may need to look beneath the surface to check a fund’s credentials.

We are happy to talk you through any of the issues addressed in our newsletter. Our next edition will be with you in the autumn when we will be anticipating the Chancellor’s next moves in the second Budget of 2021.

We hope that the introduction of our new technology has helped you feel connected and that you are finding our Wealth Platform and the video calls of benefit. With the long-awaited lockdown restriction announcement on 19 July, we hope that we will soon be able to meet more of you face-to-face if you are comfortable with meeting, although of course video calls remain available.