|Property Fund Suspensions - Update||
Further to our recent email alert Aberdeen Property Trust has announced that the fund will be suspended until noon on Monday 11th July. From this point it is intended that redemptions will be permitted, but with a dilution discount of 17%. This is of course in addition to the ‘fair value adjustment’ of around 5% which independent valuers have recommended. The intention behind this discount is to treat fairly both continuing investors and those who wish to disinvest.
|Property fund suspensions||
Clients may have noticed that a number of funds invested in ‘bricks-and-mortar’ assets have announced they are suspending withdrawals and new investments on a temporary basis, which will be reviewed every 28 days. This stems from a considerable amount of nervousness in the market surrounding valuation of commercial property following the Brexit vote, resulting in investors pulling cash out of the funds.
|Brexit Referendum – Result||
Needless to say, investors will now be considering the effect that the recent Brexit vote will have on their portfolios.
|Budget 16 March 2016 – Potential Pension Changes||
The chancellor is set to announce the outcome of a review into the existing pension tax relief regime in the Budget on 16 March 2016.
There has been a great deal of speculation regarding changes that may be made to the existing pension framework as a result of this review. We have considered a number of potential outcomes below and outlined how these may affect your pension planning. It is important to note that any potential changes outlined below are based on speculation and may not come to pass.
|2015/16 Tax Year End Planning||
The purpose of this note is to outline some of the tax planning opportunities you may wish to consider utilising before the end of the current tax year.
|Update – Protection from the Lifetime Allowance Reduction from April 2016||
Lifetime Allowance - what’s changing?
The Lifetime Allowance (LTA) represents the maximum total pension benefit that an individual can accumulate in registered pensions during their lifetime, without further tax charges applying.
The standard LTA for 2015/16 is £1.25 million. From April 2016 this will reduce to £1 million, and it is proposed that the standard LTA will then be indexed to CPI from April 2018.
|EIS Subscriptions and Self-Assessment Payments on Account||
If you recently have subscribed to an Enterprise Investment Scheme (EIS) and have to make a self-assessment payment on account by the end of January 2016, please note that it is not necessary to wait for the EIS3 form before applying to reduce the payment on account.
|The Chinese “Circuit Breaker”||
You will no doubt be aware of last week’s stock market turbulence in China. This has had a knock-on effect on other markets, which in an increasingly globalised economy is no great surprise.
In the Chinese stock market, some 80% of investors are individuals investing on their own account, which is very unusual; in a more developed stock market there are far more institutional investors. These individuals have relatively small portfolios, but it does leave many millions of ordinary Chinese exposed to fluctuations in the market.
|Brexit causes dramatic drop in UK economy, data suggests||UK economic activity in July fell at its fastest rate since the aftermath of the financial crisis in 2009, data compiled from business questionnaires shows.||22/07/2016 14:57:27|
|Most-affordable places for first-time buyers revealed||The most-affordable - and the least-accessible - places for first-time buyers are revealed by the UK's largest mortgage lender, the Halifax.||23/07/2016 00:30:26|
|'High price' for the lost savings habit||Young families are leaving themselves in a financially fragile state, academics say, amid reports that people are losing the savings habit.||22/07/2016 21:06:49|
|IMF's Lagarde to face trial over payout court confirms||The head of the International Monetary Fund, Christine Lagarde, is to stand trial over €404m payout to French tycoon Bernard Tapie, an appeals court confirms.||22/07/2016 13:16:33|
|Sports Direct staff 'not treated as humans', says MPs' report||Retailer Sports Direct is accused in a report by MPs of failing to treat its workers like human beings.||22/07/2016 15:06:43|
|Chancellor may 'reset' economic policy in Autumn Statement||Chancellor Philip Hammond says he may 'reset' Britain's fiscal policy in the Autumn Statement if post-Brexit data indicates it is necessary.||22/07/2016 13:54:21|
|Desktop banking use falls, as users switch to apps||The use of internet banking on a computer has fallen for the first time, as users switch to mobile apps, according to the banking industry.||21/07/2016 23:00:58|
|Hinkley Point expected to 'get go-ahead'||French energy giant EDF is expected to make its long-awaited investment decision on a new nuclear power plant at Hinkley Point in Somerset next week.||22/07/2016 01:15:08|