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Category: News

Beat the tax chill

Following his controversial ‘stealth tax’ Statement in November, the Chancellor made a raft of key personal taxation and pension announcements. 


The government pledged its commitment to the pensions Triple Lock, which will increase the State Pension in line with September’s Consumer Prices Index (CPI) rate of 10.1%. This means that the value of the basic State Pension will increase in April 2023 from £141.85 per week to £156.20 per week, while the full new State Pension will rise from £185.15 to £203.85 per week.


In addition to the Dividend Allowance and CGT allowance reductions (as per ‘Tax year end reminder’ article), other key personal tax announcements included:


  • The Income Tax additional rate threshold (ART) at which 45p becomes payable will be lowered from £150,000 to £125,140 from 6 April 2023. The ART for non-savings and non-dividend income will apply to taxpayers in England, Wales and Northern Ireland. The ART for savings and dividend income will apply UK-wide. This move is set to push 250,000 more people into this band


  • The Income Tax Personal Allowance and higher rate threshold are to remain at current levels – £12,570 and £50,270 respectively – until April 2028 (rates and thresholds may differ for taxpayers in parts of the UK where Income Tax is devolved)


  • Inheritance Tax nil-rate bands remain at £325,000 nil-rate band, £175,000 residence 

nil-rate band, with taper starting at £2m – fixed at these levels for a further two years until April 2028.


With an increasing number of people likely to be impacted by these changes, we can’t stress enough the importance of tax year end planning. Although some of these changes don’t come in with immediate effect, it is vital to ensure you are in the best place possible to take advantage of any allowances, exemptions and reliefs available this year and to prepare for the changes that come in over the next few years. With plenty to consider and factor into your financial plan, valuable financial advice remains central to achieving your goals and aspirations.


If you would like to know more about how he changes may affect you, please don’t hesitate to get in touch with our team –


* The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

Tax Guide 2022-23

Tax on residential property purchase 

Stamp Duty Land Tax (SDLT) in England and Northern Ireland; Land and Buildings Transaction Tax (LBTT) in Scotland; Land Transaction Tax (LTT) in Wales Residential property (first property only):

SDLT – England & Northern Ireland Rate 


Up to £250,000


£250,001 – £925,000


£925,001 – £1,500,000


Over £1,500,000



  • The SDLT cut announced on 23 September 2022 is a temporary measure which will remain in place until 31 March 2025
  • First time buyers are exempt from SDLT for purchases up to £425,000 and for the first £425,000 of purchases up to £625,000
  • A 2% supplement applies where a property is purchased by a non-resident
  • A 15% flat rate SDLT applies to ‘non-natural persons’ purchasing residential properties (enveloped properties) valued above £500,000 unless relief is available
  • Higher rates for additional properties – a 3% supplement is payable on top of the SDLT rates if buying a new residential property means you’ll own more than one.


Capital Gains Tax (CGT)

  • The annual CGT exemption for 2022–23 is £12,300
  • The annual CGT exemption will fall from £12,300 to £6,000 in April2023 and then to £3,000 in April 2024
  • For individuals the flat rate of CGT that applies to gains in excess ofthe annual exemption is 10% up to the higher rate tax threshold
  • Surcharge for residential property and carried interest of 8%
  • Chargeable gains in excess of the higher rate threshold:20% (2022–23)
  • £6,150 CGT exemption for trusts, 20% rate applies thereafter
  • Lifetime Allowance on gains eligible for Entrepreneurs’ Reliefis £1m.


Personal Allowances


Personal Allowances


Personal Allowance 


Personal Savings Allowance (basic rate taxpayer)


Personal Savings Allowance (higher rate taxpayer)


Dividend Allowance



  • The Personal Allowance for those with adjusted net income over £100,000 reduces by £1 for every £2 of income
  • Interest on savings is tax-free to a threshold of £1,000 for basic rate taxpayers and £500 for those who pay higher rate tax
  • Married Couple’s Allowance is given at 10%, claimants must be born before 6 April 1935; the full allowance is £9,415
  • Spouses or civil partners are able to transfer £1,260 of their unused Personal Allowance to their partner; this is available provided neither partner pays tax at the higher rate and is not available if the couple are in receipt of Married Couple’s Allowance.


Income Tax Rates

The following allowances and rates will apply in 2022–23 for the UK (excluding Scotland) Rate of tax 2022

Rate of Tax


Starting rate (savings income only)



Basic rate



Higher rate



Additional rate



Basic rate on dividends


Over the £2,000 Dividend Allowance

Higher rate on dividends


Additional rate on dividends


  • Income Tax is paid on the amount of taxable income remaining after allowances have been deducted
  • From April 2023, the Dividend Allowance will be cut from £2,000 to £1,000 and then fall further to £500 from April 2024
  • The Income Tax additional rate threshold (ART) at which 45p becomes payable will be lowered from £150,000 to £125,140 from 6 April 2023
  • The ART for non-savings and non-dividend income will apply to taxpayers in England, Wales and Northern Ireland. The ART for savings and dividend income will apply UK-wide.

National Insurance 

  • National Insurance contributions (NICs) Upper Earnings Limit (UEL) and Upper Profits Limit (UPL) frozen for a further two years until April 2028
  • The National Insurance Secondary Threshold for employers is frozen at £9,100 until April 2028
  • From July 2022 the NICs Primary Threshold (PT) and Lower Profit Limit (LPL) were increased to align with the Personal Allowance and will be maintained at this level from April 2023 until April 2028
  • The Class 2 Lower Profits Threshold (LPT) will be fixed from April 2023 until April 2028 to align with the LPL
  • The Lower Earnings Limit (LEL) will remain at £6,396 per annum (£123 per week) and the Small Profits Threshold (SPT) will remain at £6,725 per annum
  • The Upper Secondary Threshold, Apprentices Upper Secondary Threshold, and Veteran Upper Secondary Threshold, will stay fixed at £50,270 per annum until April 2028, to remain aligned with the UEL and UPL.

Pension Allowances

  • The Annual Allowance for 2022-23 is £40,000. Pension funding exceeding the allowance in a tax year can be offset against any unused Annual Allowance from the previous three tax years
  • Individuals with threshold income in excess of £200,000 and adjusted income of more than £240,000 in a tax year will be subject to a tapered Annual Allowance in that tax year. £1 of Annual Allowance is lost for every £2 of adjusted income over £240,000. Individuals with total earnings over £300,000 could see their Annual Allowance fall to £4,000
  • The standard Lifetime Allowance remains at £1,073,100 until April 2026.


Tax-free savings for individuals

  • Overall ISA limit £20,000
  • Junior ISA allowance £9,000
  • Lifetime ISA £4,000.


Some tax relief options for individuals 

Venture Capital Trusts (VCTs) 

  • Relief on investment in certain qualifying companies up to £200,000 per annum • Income Tax relief at 30%, provided shares held at least five years
  • Capital gains exemption on disposal (only if Income Tax relief received)
  • Dividends received from VCTs may be exempt from Income Tax 

Enterprise Investment Schemes (EIS)

  • Relief on investments in certain unquoted trading companies up to £1m per annum (or £2m as long as at least £1m of this is invested in knowledge intensive companies)
  • Income Tax relief at 30%
  • Capital gains exemption on disposal
  • Unlimited amounts of capital gains from the disposal of other assets may be able to be deferred by making an EIS investment.


Corporation Tax

  • Corporation Tax for company profits up to £50,000 is 19%. An effective rate of 26.5% is applied to profits between £50,001 and £250,000.
  • A planned increase in the Corporation Tax rate to 25% for companies with over £250,000 in profits will go ahead in April 2023.


Inheritance Tax (IHT)

  • The nil-rate IHT band is £325,000, with 40% IHT payable above this threshold
  • A lower rate of IHT (36%) applies if you leave 10% of your net assets to charity 
  • Residence nil-rate band of £175,000 where a residence is passed on death to a direct descendant

The proportion of the threshold ‘unused’ on the first death of husband or wife (or civil partners) is effectively transferable to the surviving partner and serves to increase his or her threshold by a corresponding percentage. 

Chargeable lifetime transfers and potentially exempt transfers attract taper relief, if made up to seven years before death, on the amount of gift over the nil-rate band. 


Certain gifts are IHT-free however soon death occurs, including: 

  • Gifts between UK domiciled husband and wife or between civil partners
  • Total gifts up to £3,000 in a year (can be carried forward one year)
  • Small gifts to other recipients (up to £250 each in year)
  • Gifts in consideration of marriage or civil partnership ranging from £5,000 from each parent of the couple, to £1,000 from anyone else.


State Pension entitlement

  • A flat rate, single tier State Pension of £185.15 per week is payable from 6 April 2022 (35 qualifying years of National Insurance contributions needed for full rate), available to those reaching State Pension age (SPA) on or after 6 April 2016. This increases to £203.85 per week in April 2023
  • For those who reached SPA before 6 April 2016, the basic State Pension of £141.85 applies (30 qualifying years needed for full rate), plus any additional State Pension. This increases to £156.20 per week in April 2023.


Principal state benefits 


Weekly Benefits


Statutory Sick Pay


Statutory Maternity Pay – first 6 weeks 

90% of weekly earning 

Statutory Maternity Pay – next 33 weeks


Ordinary Statutory Paternity Pay – 2 weeks


Additional Statutory Paternity Pay – variable period


* or 90% of earnings, if lower


Self Assessment dates

  • 31 Jan 2022 – Deadline for filing 2020-21 returns, balancing payment due for 2020-21, first payment due for 2021-22 
  • 31 Jul 2022 – Second payment on account for 2021-22 due to HMRC 
  • 05 Aug 2022 – Deadline to notify chargeability and advise HMRC of need to register for Self Assessment 
  • 31 Oct 2022 – Deadline for submitting paper Self Assessment returns to HMRC 
  • 30 Dec 2022 – Deadline for filing online return with HMRC if tax is to be collected through PAYE 
  • 31 Jan 2023Deadline for filing 2021-22 returns, balancing payment due for 2021-22, first payment due for 2022-23


The information contained in this leaflet is based on our understanding of the Spring Forecast 2022, Growth Plan 2022 and Autumn Statement 2022, proposals, which are subject to change. No action should be taken without further advice being sought. We can accept no responsibility for any errors or omissions.



With the tax year-end imminent, please get in touch with us as soon as possible if you have any questions or want to discuss any aspect of your end-of-year tax planning. We look forward to hearing from you.

*Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from taxation, are subject to change. Tax treatment is based on individual circumstances and may be subject to change in the future. 

Reminder – Tax Year End

As the end of the tax year approaches, a prime consideration should be how external factors

such as reduced or frozen allowances, together with high inflation, could impact your finances and what action you need to take before 5 April 2023.


If you are affected by the impending changes to Dividend Tax or Capital Gains Tax (CGT) announced in the Autumn Statement, have you considered investing up to £20,000 this tax year in a stocks and shares Individual Savings Account (ISA)?


From April 2023, the Dividend Allowance will be cut from £2,000 to £1,000 and then fall further to £500 from April 2024. In addition, the annual CGT exemption will fall from £12,300 to £6,000 next tax year and then to £3,000 the following tax year. Dividends received on shares within an ISA are tax free and won’t impact your Dividend Allowance. Also, any profit you make when selling investments in your stocks and shares ISA is free of CGT.


And don’t forget your pension


Both the Annual Allowance and Lifetime Allowance are frozen, at £40,000 and £1,073,100 respectively. As these allowances haven’t increased with inflation, it effectively means those saving to the maximum extent possible with tax concessions can save less in real terms each year.


If you would like to discuss this with our team, get in touch today-


*The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

End of tax year planning – Getting to grips with the basics

As the end of the tax year approaches, now is the perfect time to ensure you have your financial affairs in order and to double-check that you’ve taken advantage of all the tax-efficient allowances available to you.



You can contribute as much as you like into your pension, but there is a limit on the amount of tax relief you will receive each year.


This annual allowance is currently £40,000. An individual can’t use the full £40,000 Annual Allowance where ‘relevant UK earnings’ are less than £40,000, although your employer still could. You may be able to, however, carry forward unused allowances from the past three years, provided you were a pension scheme member during those years.


Threshold Adjusted Income limit is £200,000 and the Adjusted Income Limit is £240,000. If your income plus pension contributions exceeds the Adjusted Income Limit, your Annual Allowance is reduced by £1 of every £2 you are over the Adjusted Income Limit.


A Lifetime Allowance also places a limit on the amount you can hold across all your

pension funds without having to pay extra tax when you withdraw money. This limit

is currently £1,073,100.


If you have children under 18, a spouse who does not work, or who may not be earning enough to pay Income Tax, you can invest into a pension for each of them. The maximum annual contribution you can currently make is £2,880 which, along with tax relief, would amount to £3,600 a year.



The ISA allowance is £20,000 for the 2022-23 tax year. You can put all the £20,000 into a Cash ISA, or invest the whole amount into a Stocks and Shares ISA or Innovative Finance ISA. You can also mix and match, putting some into Cash, some into Stocks and Shares and the rest into Innovative Finance if you wish. However, the combined amount can’t exceed your annual ISA allowance. With pension contributions subject to annual and lifetime limits, ISAs represent an excellent way of topping up retirement income. There is no Income Tax or Capital Gains Tax (CGT) payable on ISA proceeds. You cannot carry over your ISA allowance once the tax year has ended.


In certain circumstances, investors can use existing holdings to open or top up their ISAs, this arrangement is known as a Bed & ISA. This is a way of transferring assets held outside an ISA into an ISA so that future investment income and growth are sheltered from tax. The investments are sold, cash is transferred into the ISA and the investments are repurchased. Charges apply and you could end up with a CGT liability if the gain you make on selling the asset together with any other taxable gains you make within the tax year exceeds the annual CGT allowance.


A Lifetime ISA is another option available.



Junior ISAs are a tax-efficient way to build up savings for your children (and grandchildren) and can be opened for any child under 18 living in the UK. The money can be held in cash and/or invested in stocks and shares.


They work in exactly the same way as your own ISA, however, the maximum investment is £9,000 per child.



You can make gifts worth up to £3,000 in each tax year. These gifts will be exempt from IHT on your death. You can carry forward any unused part of the £3,000 exemption to the following year but if you don’t use it in that year, the exemption will expire.


Certain gifts don’t use up this annual exemption, however, there is still no IHT due on them e.g. wedding gifts of up to £5,000 for a child, £2,500 for a grandchild (or great-grandchild) and £1,000 to anyone else. Individual gifts worth up to £250 are also IHT-free.


These are relatively small sums, but you should use these up where possible to gradually reduce your overall estate.



Every individual is entitled to a CGT annual allowance which is currently £12,300 (£6,150 for trusts). You can’t carry forward this relief and so you may look to crystallise gains up to this amount before the end of the tax year. Capital losses can also be used to offset gains.

Above the CGT allowance, basic rate tax-payers selling investments would pay CGT at 10%, with higher rate tax payers paying at 20%.


Spouses have two annual exemptions between them and can take advantage of the rules allowing assets to be gifted with no CGT implication until the asset is subsequently disposed of.


The CGT allowance will be reduced from £12,300 to £6,000 from April 2023 and £3,000 from April 2024.


Venture Capital Trusts (VCTs) and Enterprise Investment Schemes (EISs)


In addition to simpler tax planning ideas, there are other more complex areas, such as VCTs and EISs, which are tax year end sensitive.


These are traditionally higher risk investments but can offer up to 30% tax relief and provide portfolio diversification.


EISs – maximum investment of £1m (or £2m as long as at least £1m of this is invested in knowledge intensive companies) with 30% tax relief provided the investment is held for 3 years, gains are also exempt from CGT provided they have been held for 3 years.


VCTs – maximum investment of £200,000 with 30% tax relief provided the investment is held for 5 years, gains exempt from CGT, conditions apply.




For the current tax year, investors can earn up to £2,000 in dividend income tax-free.


How much tax you pay on dividends above the Dividend Allowance depends on your Income Tax band:


  • Basic rate 7.5%
  • Higher rate 32.5%
  • Additional rate 38.1%


The Dividend Allowance reduces from £2,000 to £1,000 from 6 April 2023 and then to £500 from 6 April 2024 for individuals who receive dividend income.


The information contained in this guide is based on our understanding of current allowances and rates at 6.12.22, which could be subject to change.



With the tax year-end imminent, please get in touch with us as soon as possible if you have any questions or want to discuss any aspect of your end-of-year tax planning. We look forward to hearing from you.


*It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this

document may be reproduced in any manner without prior permission.


Audley A-Z: A Wealth Of Knowledge

Understanding the financial industry and its jargon can be a challenge, even for those in the field. That’s why the team at Audley Wealth has compiled an A-Z list of financial terms to make it easier. Our comprehensive guide provides a clear explanation of the most commonly used terms, so you can stay informed and up-to-date.



Asset – A resource that has economic value that a person owns or controls. There is an expectation that this will provide a future benefit to the owner. For example a house or high-quality jewellery.


Annuities – a fixed sum of money paid to a person each year, for the rest of their life. For example, a contract issued by an insurance company is designed to provide a secure income stream throughout the entirety of your retirement years.


Accrual rate – This is the rate by which a pension from an earnings−related occupational pension scheme builds up from one year to another. The rate is shown as a fraction or a percentage of the member’s final yearly salary. 


APR – Annual percentage rate (APR) is the official rate used to help you understand the cost of borrowing from a lender. It takes into account the interest rate and all lenders have to tell you what their APR is.


Arrangement fee – This is the fee that banks charge their customers for arranging the facility for an overdraft.


AER – Annual Equivalent Rate. The AER is the official rate of savings accounts. When you put your money into a savings account, the AER shows you how much interest you will receive from that deposit, regardless of when that interest is paid.



Bond – A fixed-income security that represents the ownership of debt and serves as a loan between a company or government and an investor.


Balloon payment – Some loan and finance agreements have lower repayments than normal in return for a high final payment. This is called a balloon payment.


Basic state pension– This is the retirement pension the Government pays to people who have paid enough national insurance contributions. Some people may receive a reduced basic state pension because they have not paid enough contributions.


Beneficiary – This is someone who benefits from a will, a trust or a life insurance policy


Bequeath – If you bequeath something, you leave it to someone in your will. You cannot bequeath land or real property but you can devise them.


Base rate – The standard interest rate set by the Bank of England which other financial institutions use as a guide when setting their interest rate. The Bank of England changes the base rate according to whether they are trying to encourage borrowing or spending to stimulate the economy.



Credit Score – A credit score is a number from 300 to 850 given to everyone. The higher the score, the better a potential borrower looks to potential lenders.


Compound Interest – When you save money, as well as earning interest on the savings, you also earn interest on the previous interest you have gained.


Capital gain – You make a capital gain if you sell or dispose of a long−term asset (such as a building) for more than it cost you.


Cash ISA – You can invest money in a cash ISA to earn tax−free interest.


Chargeable asset – This is an asset on which capital gains tax may have to be paid if it is sold or disposed of.


Capital – This is the amount of money that you invest or borrow – the initial lump sum. 


Credit history – This is a record of the loans you have taken out in the past and any payments you have missed. This information is used by credit reference agencies to advise banks and building societies of your credit rating when you apply for new loans.


Child Trust Fund – The Child Trust Fund (CTF) is a long-term savings and investment account for children. In December 2010, the Government decided to stop opening CTFs, but those which had already been set up by then are designed to make sure that your children have savings up until the age of 18.


Conveyancing – This is the process of transferring legal ownership of property from one person to another.



Deductible – A fee paid out of pocket by a policyholder before an insurance company compensates for a claim.


Dividend – A periodic payment made to investors who own stock in a company, fund, or partnership, as a way to distribute earnings.


Diversification – The practice of spreading your investments around so that your exposure to any one type of asset is limited.


Depreciation – Depreciation is the drop in value of an asset due to wear and tear, age and obsolescence (going out of date) as recorded in an organisation’s financial records.


Devise – Devise means to leave land in a will


Deposit – Either a small amount paid towards the overall cost of a purchase to secure the item.


Debt –  If you’ve borrowed money, then you are ‘in debt’, typically owing interest as well as the money initially borrowed.



Earnest money – A good-faith deposit you put on a property to demonstrate intent to buy it and pull it off the market.


Equity – Equity is the value of the shares issued by a company.  


Equity Release – Equity release is the process of using the value of your home to raise cash – releasing the equity. There are two main types of equity release schemes available: lifetime mortgages and home reversion schemes. When the property is sold, the plan provider reclaims their loan and any interest due with the remainder going towards the plan owner or to their estate. 


Estate Planning – For inheritance tax purposes, an individual’s estate is calculated as being their total assets minus any liabilities at the time of their death. Proper estate planning could save your family hundreds of thousands of pounds because IHT (sometimes called ‘death duty’) will be charged on what you leave behind. Currently, IHT is due at 40% of the value of all the assets you leave behind on death above the IHT threshold.



Fixed Rate – This is an interest rate which does not change during the life of a loan. 


Floating charge – A floating charge is used to provide security for money lent to a company. The charge is over the company’s liquid assets(such as stocks and debtors) but it is only triggered by an event such as liquidation.



Grant – Financial aid that doesn’t need to be repaid. Can come from the government.


Gross interest – This is interest which has not had any income tax taken out of it.


Gilts – These may also be called Treasury bonds. They’re bonds that are issued by the UK government. They’re regarded as being very low-risk, secure investments because it’s the government promising to pay you back.



Hard inquiry – A type of credit check that lenders undertake to review an applicants creditworthiness.


Hedge fund – Hedge funds are a high-risk investment: they comprise a complicated set of strategies that aims to make attractive returns on the stock markets.



Interest – The amount of extra money you will need to pay back when you borrow money from a lender. It is generally expressed as a percentage, such as an annual percentage rate (APR).


Inflation – This is the name for general price increases. 


ISA – Individual Savings Account. There are 4 types, cash ISAs, stocks and shares ISAs, innovative finance ISAs and Lifetime ISAs


Inheritance Tax – This tax is charged on certain gifts, and on the value of the estate left by someone who has died.


Intestacy – This happens when someone dies without leaving a will. Their estate is divided up between their relatives following the rules set by law. 


Joint lives – Some life insurance policies cover two people’s lives and then pay out on the first death.


Joint lives last survivor – This sort of life insurance is on two people’s lives and pays out on the second death.


JISA – Junior ISA. For children under the age of 16. This can be invested into cash or equities and grows tax-free. Once the child reaches 16 it converts to an ISA but they are  unable to withdraw any amounts until they turn 18.





Leverage – Financial leverage is when you borrow money to make an investment that will hopefully lead to greater returns. It’s built on the idea of spending money to make money.


Liquidity – The amount of money that is available to meet debts or to use for investment, whether in cash or assets that can be quickly converted to cash.


Liabilities – These are debts that a person or an organisation owes


Lifetime annuity – A lifetime annuity will give you a regular income for the rest of your life. You buy an annuity with the cash sum that’s built up in your pension fund so that you can have a regular income during retirement. There are different types of annuities to suit your needs and circumstances.



Mortgage – A loan to buy a property, which is then ‘secured’ on the property. This means that the lender may eventually have the right to take over the property if you do not keep up with the repayment terms of the mortgage.


Mutual fund – An investment portfolio that uses a pool of money from large numbers of people to purchase stocks, bonds, or other securities.


Mature/maturity –  If an investment policy comes to the end of its life, it has reached maturity



Net Income  – The amount of money you bring home after taxes and deductions are taken out of your paycheck.



Occupational pension – Schemes are set up by employers to provide pensions for their employees.


Output tax – This is the value-added tax (VAT) charged by a business registered for VAT, on the goods and services it sells.



Premium – A fee paid in either monthly or yearly increments toward an insurance policy. 


Portfolio – The collection of all your financial assets.


PAYE –  An employer collects income tax and national insurance are collected from employees’ pay and pays it to the Inland Revenue. This system is called Pay As You Earn (PAYE). 


Pension mortgage –  This is a mortgage which will be repaid out of the lump sum from a pension policy or retirement annuity. 


PPI Payment Protection Insurance was an insurance normally taken out alongside a loan which would cover the repayments in the event of you being unable to work and make payments


Premium Bonds Government Back Savings through National Savings & Investments. Capital is guaranteed but pays no interest. Instead, you are entered into a monthly prize draw where you could win up to £1,000,000.


Pensionable age – This is the age people have to reach to be entitled to draw their state pension





Retail investor – A nonprofessional trader who buys and sells securities through a brokerage account.


Remortgage – When you apply for a new mortgage with a different lender, but stay in your current home.


Reserves – These are amounts set aside in one year’s accounts, which can be spent in later years. Some types of reserve can only be spent if certain conditions are met. 


Recession a period when an economy declines, as measured as a reduction in economic output.



Stamp Duty – Stamp Duty is a tax you might have to pay if you buy a residential property or a piece of land in England or Northern Ireland over a certain price


Stocks and Shares  – Both terms mean the same thing: companies’ stocks and shares that can be bought and sold. Owning a share in a company means owning a part of that company, or owning some of that company’s stock. 


Standing order  – This is an instruction by a bank’s customer to the bank, to pay an amount of money regularly to another bank account.



Tangible assets – If an asset can be physically touched, it is a tangible asset.


Trust – A legal entity that can hold almost any asset, including real estate, bank accounts, investment accounts, business interests, and life insurance policies.


Term – A term is any of the clauses which form part of a contract.


Trustee– A trustee is a person who takes responsibility for managing money or assets that have been set aside in a trust for the benefit of someone else.



Unsecured loan – An unsecured loan is a loan that doesn’t require any type of collateral. Instead of relying on a borrower’s assets as security, lenders approve loans based on their credit score.



Valuation – Valuation is the process of determining the worth of an asset, such as a house, or company. This will help with the sale of an asset or calculating your wealth in assets.


Variable Interest Rates – Rate on a loan or security that fluctuates over time.


Volatility How quickly the value of an investment fluctuates.



Whole of life assurance – This is life assurance cover which lasts the lifetime of the person whose life is assured





Yield – How much income an investment generates.



If you would like any more terms defined by our team, or are interested in our financial services, get in touch – 

2022 – A Year in Review

No one could have anticipated how quickly events would unfold. It kicked off on a positive footing with a strengthening labour market and a growing global economy – gradually rebounding from the pandemic. It was then abruptly punctuated as geopolitical events took hold and dominated the rest of the year. In fact, the editors of the Collins Dictionary declared ‘permacrisis’ to be their 2022 word of the year. Permacrisis is defined as ‘an extended period of instability and insecurity, especially one resulting from a series of catastrophic events.’ That just about sums it up!


The invasion and its impact

The Russian invasion of Ukraine at the end of February was the prime ‘permacrisis’ catalyst, which as well as being a humanitarian disaster, forced global energy and other commodity prices higher, intensifying the already heightened inflationary backdrop. The economic impact was, and continues to be, felt around the globe. In early spring, the outlook for macroeconomic policy quickly became critical. The path of the global economy was primarily shaped by the consequences of Russia’s invasion, major central banks’ policies and their ability to keep inflation expectations anchored, while allowing a supportive environment for growth – a challenging balance to strike.


Slowing growth – a continuing theme

Even before the invasion, the mix of uncertainties led the International Monetary Fund (IMF) to downgrade its global growth forecast for 2022 when its economic musings were released last January. While the international soothsayer outlined expectations for the global recovery to continue in 2022, it predicted a ‘disrupted recovery’ with growth forecast to moderate. Back in January, the Organisation for Economic Co-operation and Development (OECD) expected growth to moderate to 4.4% in 2022. This reflected forecast markdowns in the US and China – a theme which continued throughout the year, as growth faltered in the world’s two largest economies.


Inflation and interest rates – an ongoing battle

Inflation exceeded all forecasts in 2022, reaching 11% in the eurozone and UK, and around 8% in the US. The Federal Reserve, European Central Bank (ECB) and Bank of England (BoE) raised interest rates in outsized moves in the year in an attempt to temper inflation. On home shores, since December 2021, the BoE increased Bank Rate from 0.1% to 3.5%. The impact of monetary tightening on the economy is visible, with broader effects on consumer demand, spending, the housing market and job markets.


Closer to home – all change on the political front

As 2022 progressed, political events dominated the domestic landscape. The year saw three Prime Ministers, four Chancellors and a whole series of fiscal events. In September, the fallout from former Chancellor Kwasi Kwarteng’s controversial Growth Plan sent shockwaves through financial markets, causing significant moves in government bond prices and yields, a hit on sterling and chaos on the mortgage market. The BoE sought to intervene with a short-term bond buying programme, while the IMF weighed in with concerns of its own. Following new Chancellor Jeremy Hunt’s reversal of most of the Mini-Budget measures, a level of stability resumed. Challenges with household finances were somewhat supported by the Energy Price Guarantee, one measure which was retained. The Autumn Statement in November brought a swathe of announcements set to pull people into paying higher rates of Income Tax, with more people paying Inheritance Tax (IHT), a cut to tax-free income from dividends and a reduction in Capital Gains Tax (CGT) allowances. The Edinburgh Reforms announced in early December look set to shake up financial service regulation in the coming year. As the year closes amid widespread industrial action, Prime Minister Rishi Sunak faces a multitude of challenges as we head into the new year, including winning electoral favour for his party.  


Volatility – a known known? 

The year was a challenging one for global stock markets. All major indices had a tough time as soaring inflation, rising interest rates and the Ukraine invasion critically entwined to host a potentially disconcerting backdrop for investors. Markets experienced significant volatility and extended downturns throughout the year. Global stock markets have had some positive periods, and as the year closes out, some momentum has returned. The CBOE Volatility Index or The VIX® Index is a measure of the US stock market’s expectation of volatility based on S&P 500 index options. Widely known as the ‘Fear Index,’ the higher The VIX® Index, the greater the level of fear and uncertainty in the market, with levels above 30 indicating tremendous uncertainty. The VIX® Index topped 36 in early March as the Russian invasion impacted; it subsequently fluctuated throughout 2022 between 18 and 34, moderating in the low / mid 20s at the end of the year. In early December, The VIX® Index dropped below the key 20 threshold, reaching its lowest level in more than three months as Wall Street grew increasingly bullish about the stock market’s future prospects. The VIX® Index reached a record high of 82.69000 in March 2020 at the outset of the pandemic and a record low of 9.14000 in November 2017.


Bulls and bears – a sense of perspective 

Although 2022 was a year littered with geopolitical events and market shocks, it’s useful to put what happened into a wider historical context. The frequency of market shocks has increased and, to a certain degree, intensified over the past few years. Recent catalysts such as the Brexit vote, the election of Trump as US President, the pandemic and subsequent lockdowns, the Ukraine invasion and the UK political landscape in 2022, all triggered investment volatility. 


Interestingly, 2022 has been different because those exposed to lower risk assets such as bonds were adversely impacted. With rising inflation, higher exposure to fixed income strategies, including UK government bonds, bond yields rose and bond prices fell, which had a detrimental impact on their performance. This was further exacerbated by the political turmoil in the autumn, in particular the unfunded tax pledges in the mini-Budget. Reversal of the measures and return of political stability led investment markets to recover some losses. 


The 2022 bear market differs because with crisis-fuelled bear markets, such as the pandemic-driven 2020 crash, a gradual easing of monetary policy was the antidote. This time, however, policy tightening will likely be the cause of economic slowing, as central bankers grapple with inflation. As an individual investor, the key to approaching any turbulence is to understand that market swings are normal and relatively insignificant over the long-term. 


Over a 75-year period to 2020, there were 64.7 bull years (the average bull period was 5.9 years), and 11.3 bear years in total (the average bear period was 1.1 years). Historically, bull markets have beaten bears and driven long-term gains. Investing for the long-term and having a disciplined, well constructed plan can help you reach your goals. Also, opportunities do arise in depressed market conditions, like the ability to purchase quality stocks effectively at a discount.


Looking ahead – recession and recovery

As 2023 dawns, we enter the new year under the spectre of potential recessions in developed markets, with high inflation and interest rates continuing to place downward

pressure on growth. 


Predictions can be troublesome; after all, at the turn of 2022; who would have called double digit inflation in the West, the most aggressive US monetary policy tightening for decades, a crash in government bonds and war in Europe? 


What we do know though is that providing our clients with a sound strategy and a financial plan able to flex with changing needs, which is positioned for the long-term and broadly diversified across a range of global assets, will help bring resilience in different market conditions. It’s important to remember that market volatility is normal, and history shows that those who are patient and stick to their plans are more likely to achieve their financial objectives. Rebalancing your portfolio will ensure your asset allocation remains aligned with your objectives.



While we aren’t in the habit of making predictions for the year ahead, here are a selection from some reputable banks, organisations and asset managers for you to ponder:


  • The BoE expects inflation to fall sharply from the middle of 2023
  • The OECD forecasts a ‘significant growth slowdown’ globally in 2023, with tighter monetary policy, persistently high energy prices, weak real household income growth and declining confidence all weighing on growth 
  • The Confederation of British Industry (CBI) projects that the UK economy is on course to shrink by 0.4% in 2023, as persistently high inflation continues to dampen longer-term growth prospects, with unemployment expected to peak at 5.0% in late 2023 and early 2024, up from 3.6% currently, while gross domestic product (GDP) is forecast to return to its pre-pandemic level in mid-2024
  • Recessions are anticipated in the eurozone and UK starting in late 2022 and in the US in Q2 and Q3 – Fitch Ratings
  • Despite the headwinds to growth, JP Morgan sees the potential for stronger markets in 2023, ‘a dramatic reset in valuations has created one of the most attractive entry points for both stocks and bonds in over a decade’ 
  • Mike Wilson, Chief Investment Officer and Chief US Equity Strategist at Morgan Stanley, believes, “Because we are closer to the end of the cycle at this point, trends for these key variables can zig and zag before the final path is clear. While flexibility is always important to successful investing, it’s critical now”
  • Real estate company CBRE expect a moderate UK recession throughout 2023 and in 2024, ‘the economy will recover, growing by 1.7%. The economy appears sufficiently healthy to avoid long-term scarring, such as reduced business investment, high long-run unemployment, and permanent decline in key sectors. As inflation reduces and the Bank decreases interest rates, consumers’ incomes will restore their purchasing power. Spending will increase, ushering growth in output in early 2024, with strong recovery underway by the second half of 2024.’


“The economy appears sufficiently healthy to avoid long-term scarring”


*The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. 


*It is important to take professional advice before making any decision relating to your personal finances. This article does not provide individual tailored investment advice and is for guidance only.

Your financial wellbeing hub

The past couple of years have undoubtedly been a challenge for us all but, by pulling together, we have managed to get though an extraordinarily difficult period of time. Now, as we emerge into the post-COVID economy, we face a different set of challenges which, in their own way, appear no less daunting. One thing though does stay the same – we’re still here, by your side, and determined to continue steering you safely through any financially choppy waters that lie ahead.


 Economic uncertainties

Although the economy did stage a tentative recovery last year and in the early part of 2022, it’s fair to say the outlook has become increasingly challenging in recent months. Surging inflation has curtailed our spending power and, with energy bills set to rise further over the autumn and winter months, the cost-of-living squeeze looks set to continue for now. Higher-than-expected inflation has also triggered a rise in interest rates, while fallout from the war in Ukraine adds to a cocktail of economic uncertainties.


Planning is paramount

No one is immune from these difficulties; while some will struggle more than others, we will all be impacted to some degree. In many ways, though, times like these serve to emphasise why people seek professional financial advice in the first place. Economic downturns are normal but having a sound, structured plan helps to ensure our financial goals and aspirations are not derailed when one does occur.


Financial wellbeing

Arguably, protecting your financial wellbeing has never been so important and the best way to do so is by sticking to your financial plan. It’s therefore essential to try to maintain any ongoing commitments such as pension contributions, protection premiums and regular savings policies if you possibly can.


We’re here to help

It’s also vitally important to keep talking, so do get in touch if you need our help. We’re here for both you and your family; ensuring your financial wellbeing is, and always will be, our primary concern.


The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

Selling with success

Planning to sell your property? You already know there’s a lot of big things to think about. But don’t neglect the small details either.

 Seemingly minor changes can make a significant difference to how a property is perceived and, ultimately, its sale price. Here are three top tips for putting the finishing touches to your home before listing it for sale.

Appearances count

If you’ve been putting off any DIY tasks, now might be the time to finally get them done! Presenting a well-maintained property shows prospective buyers that the house has been well cared for, which will reassure them that there won’t be any nasty surprises. In contrast, if buyers notice obvious DIY shortfalls, they’ll factor the costs of carrying these out into their offer price.

 Lose the quirks

It’s a good idea to remove some of the more personal objects and displays around your home. Without making it feel like an empty white box, you can help prospective buyers better imagine themselves living in your house by taking away your most glaring quirks.

 Define rooms

Over time, rooms can end up evolving away from their original purpose – intentionally or not. This is normal but when it comes to selling, clarity is key. If the spare bedroom has become a storage depot, converting it back to its original purpose can help showcase the space and market the house more effectively.

Big and small

Having someone on your side to help with the big decisions can help you stay in control of every little detail. Get in touch, we can help!

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.

Intergenerational planning – a growing need

With the next 30 years set to witness the largest ever intergenerational passing of wealth, the need for inheritance advice has never been greater. Intergenerational planning, however, can also help with more immediate financial needs, particularly when generations work collaboratively to find solutions that support the whole family both now and in the future.


Inflation concerns

Currently, financial pressures are proving a key challenge across all generations, especially the impact of soaring energy bills as we move towards the winter period. The cost-of-living squeeze, though, is not only impacting people’s current spending power but also their future decision-making capabilities with regard to key issues such as housing, private education or university.


Balancing current and future needs

This has resulted in families increasingly adopting integrated strategies, especially in relation to gifting, in order to address imminent financial challenges. While reducing future Inheritance Tax liabilities inevitably remains at the heart of intergenerational planning decisions, the growing necessity to balance today’s and tomorrow’s needs is resulting in the focus shifting to support for children and grandchildren now.


Involving the generations

Intergenerational planning tends to be most effective when the process is not just focused on those who currently hold wealth. While funding a comfortable retirement and quality of care for the ‘caretaker’ generations remain fundamental elements of intergenerational planning, delivery of support for the coming generations and ensuring wealth passes efficiently to the right individuals at the right time have become increasingly important dimensions.


More families share an adviser

Greater involvement across multiple generations has also seen sharing a financial adviser become increasingly commonplace. This trend offers significant benefits, particularly when it comes to joining up a whole family’s needs with inheritance and gifting strategies, while treating all family members fairly.


Encouraging conversations

If your family needs help with any aspect of intergenerational planning, then please get in touch. We’ll be happy to assist by encouraging more open financial conversations across the generations.


The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation. Inheritance Tax Planning is not regulated by the Financial Conduct Authority.

Climate Change For Investors

As the world continues to emerge from the pandemic, although other headwinds exist, governments, businesses and the financial world are refocusing on what the Principles for Responsible Investment (PRI) describe as ‘the greatest threat to the wellbeing of humanity and to the ecosystems on which we depend’ – climate change.

According to PRI, a United Nations-supported initiative, many are now recognising “the enormous opportunity for economic growth and investment returns presented by the transition to net-zero emissions.” PRI reflect a firm belief that “the financial sector and the investment community will play a central role in the global response to climate change and supporting the transition to a net-zero economy.”


A year after the United Nations 26th Conference of the Parties, on British shores, the upcoming COP27 climate conference is taking place in Sharm El-Sheikh, Egypt this November. Last year, delegates from almost 200 countries agreed upon the Glasgow Climate Pact at COP26, which builds upon targets set out in the Paris Agreement, an international legally binding treaty intended to limit global warming to 1.5 degrees Celsius. Key pledges made by governments last year included commitments to end deforestation, cut global methane emissions and to transition to zero-emission vehicles. Countries were asked to return to this year’s conference with a plan to strengthen their 2030 commitments.

“A decisive decade for climate action”

Mahmoud Mohieldin, the UN climate change high-level champion for Egypt, hopes the 2022 conference will be an important milestone in what he calls “a decisive decade for climate action.” In his view, COP27 should undertake an “urgent, ambitious, impactful, and transformative agenda, guided by a holistic approach to sustainable development,” based upon the principle of equity and informed by science.

“In light of the goals and objectives… we will promote a stronger focus on implementation, transforming commitments into actions and translating the pledges of the summits into solutions in the field,” he continued, “While acknowledging the complexities of the different political, economic and developmental challenges, it is incumbent on us all to raise the threshold of action at COP27.”

Engaging with climate change

COP27 will undoubtedly be of interest to investors engaged with climate change, with key announcements potentially impacting their portfolios. Investment decisions have a role to play, and the investment industry continues to play a pivotal role in the global climate transition. One investor initiative – The Net Zero Asset Managers Initiative – has now grown to over 270 investor signatories with over $60trn assets under management – all committed to supporting the goal to reach net zero and investments aligned with net zero emissions.

COP provides an opportunity for institutional investors to consider how they can innovate in developing solutions to solve climate issues and in financing sector transition. PRI deduce that, ‘Investors increasingly recognise the threat posed by climate change to the global economy, and therefore to their ability to meet the needs of their beneficiaries over the decades to come… They understand the imperative to engage with the companies in which they invest, and the policymakers who write the laws, to ensure that both groups respond appropriately to the threats and opportunities involved.’

The value of investments and income from them may go down. You may not get back the original amount invested.