Benefits of Independent Financial Advice
Equity markets are fickle, the U.K has spent too much money & many individuals are not sure of the future as far as businesses, money and finances are concerned. It might all seem a tad uncertain & indeed the UKPLC has a lot of pain to take before we start to get the finances straight. Although the new coalition government will start to tackle the issues facing the UK we can all take time to re-examine our own private finances.
I believe that where change comes about, opportunities are present. The emergency budget will close off some loopholes as far as financial planning is involved, but others may become available to encourage entrepreneurship & long term saving. Personally if you can make the most acceptable 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 closer to the truth. On The Face Of It a large number of people with buy to lets have put them on the market, possibly to sell before the emergency budget in three wks 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 cannot be easily disposed of. Due to the gain in property values over the last 10 years some investors will face potential CGT bills when they least expect it.
A competent financial adviser should be able to point out the Disadvantages and Advantages concerning different types of investments. This should include the investment risks and practicable tax implications.
Consilium Asset Management is an IFA in Bristol.
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