The Net’s Most Wanteds

Stock markets are unstable, the U.K has spent too much money & many individuals are not sure of the future as far as work, money & finances are involved. It might all seem very bleak and indeed the UK PLC has a lot of pain to suffer before we begin to get the books in order. Although the new coalition government will hopefully start to address the issues facing the economy we can all take some time to go over our own private finances.

I believe that where change comes about, opportunities are present. The emergency budget could close many loopholes as far as financial planning is involved, but others may become available to encourage entrepreneurship and long term saving. Personally if you can make the most acceptable investment return for the amount of risk you are able to accept , combined with utilising 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. Evidently a large number of individuals with buy to lets have put them on the market, hopefully to sell before the emergency budget in 3 wks time. The reason is the possible 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 possible action of CGT into account when designing their investment portfolios. Property is an ill-liquid asset it cannot be easily disposed of. Due to the gain in property values over the last ten yrs some investors will face potential CGT bills when they least expect it.

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

Consilium Asset Management Ltd is an IFA in Bristol.