Author: Rob Bowers

The film Thelma – currently showing in cinemas – is a comedy-drama that tells the story of a 93-year-old woman who loses $10,000 to a phone scammer pretending to be her grandson. Outraged by this deception, Thelma sets off on her motorised scooter to track down the crooks and reclaim her money.

Sadly, such tales are not limited to the world of fiction.

According to data reported by PensionsAge, since the beginning of 2020, more than £2.6 billion has been lost to investment scams.

During the same period, the research revealed that pension liberation fraud – when someone convinces you to access your pension pot before the age of 55 – affected almost 1,500 people and cost £19 million.

If you want to know how to protect yourself from pension and investment scams, read on to discover the red flags to look for and learn how to keep your wealth safe from fraudsters.

Knowing how to spot a financial scam could help you protect your wealth

Anyone could fall prey to a financial scam, no matter how financially savvy they are.

Scammers often come across as convincingly professional. Plus, over the years they have developed increasingly sophisticated techniques to persuade their victims to part with their money.

So, it’s important to learn how to spot the warning signs.

Had Thelma been more aware of how financial fraudsters operate, she might not have fallen for the scam about her grandson and saved herself a treacherous journey across LA!

The following red flags could help you identify suspicious activity and avoid becoming a victim of financial fraud.

Pension scams aim to persuade you to transfer your entire pension savings or release funds from it

The following red flags have been identified by The Pensions Regulator as warning signs of a scam:

• Cold-calling – The former Conservative government introduced a pensions cold-calling ban, which came into effect in January 2019. So, anyone who makes an unsolicited phone call to you regarding your pension is breaking the law and is most likely a scammer.
• Using key phrases – If someone tries to persuade you that they can help you with “pension liberation”, obtaining a “savings advance”, or taking advantage of a ”loophole”, you might be wise to walk away.
• Offering early access to your pension – An offer to help you gain access to your pension before the normal minimum pension age of 55 (57 from 6 April 2028), with no tax liability. Generally, this is only possible in special circumstances, such as if you’re suffering from ill health or have a protected pension age.
• Hard-sell tactics – Many scammers will try to pressure you into a decision by telling you their offer is only available for a limited time. Or, they might play on your emotions, just as the phone scammer duped Thelma by pretending to be her beloved grandson and begging for help.
• Guarantees of incredible returns – Fraudsters may try to tempt you to hand over your money by promising that they can offer better returns than your current pension provider.
• Unusual high-risk investments – Investments such as renewable energy bonds and forestry are often overseas. This could make it hard to trace ownership of the investment or even to verify that it exists.

Investment scams aim to get you to hand over your money

Investment scams come in all shapes and sizes, from promoting an opportunity that doesn’t exist to cloning the website of a legitimate company.

Any of the following red flags should set alarm bells ringing.

• Unsolicited contact – Legitimate investment firms won’t typically contact you out of the blue to offer an opportunity. So, if you receive a “cold” email, phone call, text message, or even a knock at your door, treat this as a significant red flag.
• Guarantees of high returns and low risk – Generally, the potential for higher investment returns increases in line with the level of risk. What’s more, returns cannot be “guaranteed”. If something seems too good to be true, there’s a good chance it is.
• Being forced to make a quick decision – A favoured tactic of scammers is to make you feel that if you don’t snap up their offer immediately, you’ll miss out. Legitimate investment firms are unlikely to pressure you in this way.
• Questionable contact details – Thelma is caught out by a scammer who asks her to send $10,000 in cash to a PO Box. If the only way to get in touch with a company is by writing to a PO Box address or ringing a mobile phone number, this could be a reason for caution.
• The company is not registered with the Financial Conduct Authority (FCA) – The FCA’s website lists all registered providers of financial services. It also has a Warning List of firms that may be operating without permission. If the FCA doesn’t recognise a company, it may be best to steer clear of it.

4 smart ways to protect yourself from financial fraudsters

While financial scams have become more sophisticated as technology has advanced in recent years, there are steps you could take to protect your wealth.

1. Research new opportunities thoroughly

Scammers often appear professional and knowledgeable. They can also be extremely charismatic and persuasive.

Thelma is quickly taken in by the phone scammer posing as her grandson and rushes to hand over her money. Had she checked that the caller was legitimate before parting with her cash, she could have avoided the scam.

Before committing to a new opportunity, check that the company has the contact information you’d expect, look for customer reviews, and search for any scam reports online.

2. Don’t rush a decision

If you feel pressured to make a decision fast, take a step back.

An amazing pension or investment opportunity may feel hard to resist and the fear of missing out can be powerful.

However, a genuine opportunity is unlikely to disappear overnight. So, take the time to research the opportunity and seek advice before making any financial commitment.

3. Use the FCA’s free online tools and registers for identifying scams

The FCA’s ScamSmart Investment Checker is an excellent place to start your research.

This is a free online tool for verifying investment and pension opportunities. It’s quick and easy to use, and it could help you avoid falling victim to a financial scam.

4. Speak to a financial planner

If you’re uncertain about a pension or investment opportunity, seeking independent financial advice from an FCA-regulated firm could give you the confidence to proceed or help you avoid a scam.

It’s also crucial to report any suspected fraud to prevent scammers from targeting other people. In England, Northern Ireland, and Wales, you can report any concerns to Action Fraud using the online reporting tool. If you live in Scotland, you should call Police Scotland or Advice Direct Scotland.

Get in touch

If you’re concerned about financial fraud and would like to learn more about how to protect your wealth, we can help. Please email hello@bluewealth.co.uk or call us on 0117 332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

Blue Wealth Ltd is not responsible for the accuracy of the information contained within linked sites.

Blue Wealth Ltd is an appointed representative of Best Practice IFA Group Ltd, which is authorised and regulated by the Financial Conduct Authority.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Even for professional investors, consistently delivering above-average market returns on investments is challenging. Those who have delivered high returns over a long time frame are remembered among the world’s greatest investors.

While you may not have the same resources that a professional investor may have at their disposal, you could learn valuable lessons from their work. Renowned investors might have unique philosophies and strategies, and sometimes they share their market wisdom.

This useful guide covers some practical lessons you can learn, including:

• Learn the value of investing from Warren Buffett
• Take the time to understand your investments like Peter Lynch
• Be prepared for the ups and downs of the investment market like John Templeton
• Embrace diversification like Thomas Rowe Price Jr
• Include a margin of safety like Benjamin Graham.

Download your copy of ‘5 insightful lessons you could learn from the world’s most successful investors’ now to discover investment lessons that could guide your decisions.

If you’d like to talk to us about your investment portfolio, please get in touch.

What makes an Olympian? Natural talent or the hours put into training might be the first things that come to mind. However, their approach and mindset play an important role in their achievements too. 

An athlete’s mentality will have a huge effect on how they pursue goals and their ability to perform well when it matters most. Getting in the right frame of mind for success could mean the difference between making the Olympic team and missing out. 

With Paris hosting the Olympics in 2024, now is the perfect time to look at what you could learn from Olympians when it comes to managing your finances effectively, such as:

• Being goal-oriented
• Breaking down your performance
• Keeping your emotions in check
• Working with professionals. 

Download your copy of ‘How an Olympic mindset could help you manage your finances effectively’ to discover how you could benefit from adopting an Olympic mindset.   

If you’d like to talk to us about your financial plan, please get in touch. 

This month, both Adrian Thorley and Rob Bowers are celebrating significant career anniversaries.

On 16 July, Adrian will have been working in financial services for 40 years. Shortly after this, on 31 August, Rob Bowers will reach his silver anniversary (25 years).

Read on to find out about how Rob’s and Adrian’s careers have developed and discover what plans they have for the future.

Rob Bowers celebrates 25 years working in financial services in August

How did you start your career in financial services?

“Accidentally! I took a year out before reading leisure marketing at university and got a job at Halifax Business Centre. They offered me an opportunity to study while working and I moved internally to Clerical Medical offering life assurance and pension advice.

“The rest, as they say, is history!”

Tell us about your time at Blue Wealth.

“It started out as just me in the back bedroom! Then, I took a small office and Nathan came on board shortly after.

“Growth has been mainly organic since then. We didn’t set out to shoot the lights out or become a huge business, we just want to offer great financial planning to clients over the long term. I think it’s worked so far!”

How has the profession changed during your career?

“Immeasurably. When I started financial ‘advice’ was very much product-led. We earned commission from product providers and ‘planning’ was very much a biproduct that was given away for free while we tried to advise on (sell) products.

“Financial ‘planning’ nowadays is much more client-led and goals-based. The products are simply our tools to achieve those goals. It’s very much shifting from being an industry to a profession.”

What has been your proudest career achievement?

“Building Blue Wealth to where it is now, without doubt. You only ever realise how far you’ve come when you stop and look back at where you were.

“We’ve got a great team, great clients and it’s a great business to be part of.”

What developments are you excited about seeing in your career and the profession in the future?

“Industry-wide, I think there is still a long way to go in terms of professionalism.

“We are far from trailblazers, but I do think we are ahead of most advice firms in terms of how we deliver high-quality advice.

“AI is a hot topic at the moment and while I think it can and will help advice firms in the back office, I’m still very much in the camp that it won’t replace good quality, professional advice delivered by real people.”

“Also, I’d like to say a heartfelt thank you to everybody I’ve encountered along the way – colleagues, industry contacts, and especially clients.

“It’s been a fun ride so far and there’s plenty of time to still go until I catch up with Adrian’s 40-year streak!”

What advice would you give to someone entering the profession today?

“Don’t get pigeonholed. Try and be in an environment where you can see as much of the industry as possible and absorb everything.

“I’ve worked with some great people in this industry as well as those who didn’t quite set the bar as high. It’s all a valuable learning experience. In time, you’ll shape your own standards, ethics, ways of working, and communicating.”

Adrian Thorley celebrates 40 years working in financial services in July

How did you start your career in financial services?

“I drifted into it, despite having been determined not to at first.

“I went to a school where it was expected that you went on to university, but I didn’t want to. My parents wanted me to join a bank, as they thought that was a job for life (it was 1984)!

“I had interviews with what were the ‘big four’ but got nowhere. In all, I applied for 40 jobs. Reluctantly, I applied to SunLife, a major financial services employer in Bristol at the time, and got the job.”

Tell us about your time at Blue Wealth.

“I’ve been here nearly five years now. I’d advised clients before but lived outside the UK between 1997 and 2010 when I moved to Devon to work as a product provider.

“At 53, I decided that 42,000 business miles a year wasn’t for me any longer. I was offered an opportunity at Blue Wealth and haven’t looked back.

“My time at the firm has been fantastic. I’ve been supported to bring my qualifications up to 21st century standards and have a better work-life balance. I’m also treated as an adult – just as well as I’m the oldest member of staff!”

How has the profession changed during your career?

“Beyond all recognition!

“There was no regulation in 1984. Looking back, it was like the wild west.

“When I tell my younger colleagues that there was no such thing as email, we didn’t have a computer on every desk, and that there were free lunches in the company restaurant, which had a subsided bar, I imagine they think I’m from another planet!

“Importantly, regulation has significantly decreased – although arguably not stopped – some of the suspect activities that took place.

What has been your proudest career achievement?

“I think individual things like reassuring a client that premiums for the life assurance policy that they had would not increase because of a cancer diagnosis. Then going on to help them make a critical illness claim that allowed them to pay off their mortgage.

“Also, experiencing increased trust from clients as our business relationships develop over time and they realise that I am on their side and have their backs when they need me.”

What developments are you excited about seeing in your career and the profession in the future?

“In truth, my career has probably run its course in terms of advancement. I’m certainly not thinking of moving on to bigger and better things.

“I am excited about the opportunity to help increase the number of individuals, families, and businesses that Blue Wealth looks after.

“The prospect of AI and ‘robo’ advice becoming more popular scares me. But only because I think that the real benefit we deliver comes from empathy and human interaction, which technology can never replace.”

What advice would you give to someone entering the profession today?

“I’d probably suggest working for a larger employer to start with. Somewhere that provides high-quality in-house training and support to obtain qualifications.

“Once you have that grounding, maybe look for a smaller firm that practices real financial planning.

“This will help you to recognise that the value in what the profession does is in the advice and expertise you can provide, and not in the products you recommend. That might mean ‘unlearning’ some of the things that you’re taught early on.”

Get in touch

If you’d like to find out how Rob, Adrian, and the Blue Wealth team can help you progress towards your financial goals, please get in touch.

Drop us an email at hello@bluewealth.co.uk or call us on 0117 332 0230.

In his Spring Budget, Conservative chancellor Jeremy Hunt announced a consultation on the introduction of a new UK or British ISA. According to the Telegraph, Labour backed this investment initiative and had “no plans” to drop it.

This ISA would give you an additional £5,000 on top of the current £20,000 annual ISA allowance, to invest in UK shares.

If you think this sounds like an appealing proposition, you’re not alone. According to research published in IFA Magazine, almost half of UK adults are interested in opening a UK ISA if the Labour government introduces one.

However, this potential new ISA has sparked debate about “home bias” in investing. That is, concentrating all your investments in UK equities.

This lack of diversification could increase your exposure to risk, which can occur if your portfolio is too heavily weighted in one particular geographic region or sector – if the economy in your home country experiences a downturn, the value of your entire portfolio could fall.

In contrast, investing in a range of overseas markets, sectors, and asset classes could help you effectively balance risk in your portfolio.

Read on to learn more about home bias and find out what steps you could take to avoid it hampering your progress towards your investment goals.

Home bias could increase your exposure to risk when investing

If you hold a disproportionate amount of domestic assets compared to their share in the global market, home bias could be affecting your investment portfolio.

Indeed, FTAdviser has reported that 25% of the average balanced model portfolio is made up of UK investments – even though the UK only accounts for 3% of global GDP and 4% of global equity and bond markets.

What’s more, the UK may have an inherent “concentration risk” as the largest 10 companies account for 42% of the total market capitalisation. This could mean that if you invest in a UK fund, you’re relying on a handful of companies to perform well.

So, if you’ve focused solely or disproportionately on domestic investments, a dip in the UK economy – which is likely to affect businesses in the country – could negatively affect the value of your entire portfolio.

Reasons why home bias remains pervasive among UK investors

You might intentionally favour UK markets because this feels like your “comfort zone”. FTSE 100 companies, such as Marks & Spencer and Sainsbury’s, may feel more familiar and “safe” than those that feature in foreign stock markets.

On the other hand, you may be unaware of the influence home bias could be having on your portfolio. If you don’t monitor and review your investments routinely, changes in global markets – such as the reduction in the size of the UK market in recent years – could lead to unintentional home bias.

Whatever the reason, if you put all your eggs in one basket by primarily investing in domestic shares, the value of your portfolio could fall if the UK economy struggles.

So, eradicating home bias may help you balance risk more effectively.

Building a diversified portfolio could lead to greater investment returns

Diversifying your portfolio, by investing across global markets and different sectors using various asset classes, could not only help you balance risk but may also lead to greater returns.

While diversification involves more than geographical variances, adding international stocks and shares to your portfolio allows you to access growth opportunities you might have missed out on by limiting your investments to a single region.

Indeed, an analysis of data from the past 20 years conducted by Fidelity and reported by FTAdviser has shown the comparative returns of a globalised and UK-centric approach. Investing £10,000 in a diversified global portfolio returned £43,276 compared to only £37,980 when using a portfolio containing 40% UK funds – a difference of over £5,000.

3 ways to avoid home bias in investing

1. Invest in various markets around the globe

Diversifying your portfolio by investing in a range of asset classes in different geographical locations could allow you to balance risk and increase the potential for higher returns.

Indeed, spreading your wealth between various markets around the globe could help limit losses in your portfolio. For example, if the UK market slows, a buoyant US market could allow you to offset your losses against your gains – if you hold shares in both markets.

2. Drill down into the funds you hold

Investment funds usually contain a variety of equities so they may seem like a useful way to diversify and spread the risk in your portfolio. But it’s always worth a closer look.

Indeed, some funds may not be as diversified as you might think they are. As mentioned above, UK funds are often made up of a handful of large companies. However, drilling down into the composition of funds isn’t always simple. So, you might benefit from consulting a financial planner who can help you review your investments and avoid both concentration risk and home bias.

3. Seek advice from a financial professional

As can be seen from the above, assessing funds, building a diversified portfolio, and balancing risk could be complicated.

So, you might benefit from speaking to a financial planner who can help you build an investment portfolio that aligns with your goals and appetite for risk. They can also help you avoid emotion-based decisions, such as favouring domestic equities and unintentionally allowing your portfolio to potentially suffer from home bias.

Get in touch

If you’d like to learn more about how to build a diversified investment portfolio that balances risk effectively, we can help. Please email hello@bluewealth.co.uk or call us on 0117 332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

Blue Wealth Ltd is not responsible for the accuracy of the information contained within linked sites.

Blue Wealth Ltd is an appointed representative of Best Practice IFA Group Ltd, which is authorised and regulated by the Financial Conduct Authority.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

2024 has been called “the year of elections” with an estimated 2 billion people around the world heading to the polls.

Voters in the UK will have their say on 4 July. Now that each of the main parties has published their manifestos, here’s what the 2024 general election could mean for your finances.

Conservatives – more National Insurance cuts and the “triple lock plus”

Having already reduced National Insurance (NI) rates twice in 2024, the Conservatives have made further cuts to NI one of their flagship policies at this election.

They propose to:

• Take another 2p off employee NI by April 2027, reducing the rate from 12% at the start of 2024 to 6%. They say this represents a total tax cut of £1,350 for the average worker on £35,000.
• Abolish the main rate of Class 4 NI contributions for self-employed workers by the end of the next parliament. Crucially, this will not affect any entitlement to the State Pension. The Conservatives say this measure means that 93% of self-employed people – 4 million of them – will no longer pay self-employed NI.

The party also says it will keep Income Tax thresholds frozen until 2028 and will not raise the rate of VAT or Capital Gains Tax (CGT). They have committed to maintaining Private Residence Relief so that your home is protected from CGT and introducing a two-year temporary CGT relief for landlords who sell to their existing tenants.

Despite rumours that the Conservatives may reform Inheritance Tax (IHT), there is no mention of IHT in their manifesto.

In 2010, the coalition government introduced the State Pension triple lock, which guarantees a rise in the State Pension each year. The Conservatives say that the triple lock has seen the basic State Pension rise by £3,700 since 2010.

To enhance this protection for pensioners, the “triple lock plus” will ensure the Personal Allowance for pensioners also rises by the highest of prices, earnings, or 2.5% each year. This guarantees that the new State Pension will always be below the threshold at which Income Tax becomes payable.

Additionally, a new Pensions Tax Guarantee will pledge:

• No new taxes on pensions
• To maintain tax relief on pension contributions at a saver’s marginal rate
• To not extend NI to employer pension contributions.

In the Spring Budget, chancellor Jeremy Hunt announced an increase in the amount you can earn before you start to lose Child Benefit. Previously, it was taken away entirely when one parent earned more than £60,000. This has already been increased to £80,000.

The Conservatives are also pledging to move to a “household” rather than an individual basis for Child Benefit, by setting the combined household income at which a family will start losing Child Benefit at £120,000.

They then plan to gradually remove it until household income reaches £160,000, above which families will no longer receive Child Benefit. They say this will have a positive impact on more than 700,000 households, each gaining an average of £1,480 a year.

The party has committed to delivering 1.6 million homes in England in the next parliament and has already announced changes to the non-dom rules.

Finally, the Conservatives say that they will go ahead with their proposal for an £86,000 cap on social care costs for people who are older or disabled in England. It means no one would pay more than that for personal care over their lifetime. The party plans to introduce this in October 2025.

Labour – No plans for tax rises, but changes to private school fees and non-dom rules

While they have made no commitments to reduce personal taxation, Labour says that, if they win on 4 July, they “will ensure taxes on working people are kept as low as possible”.

They have pledged not to increase NI, VAT, or the basic, higher, or additional rates of Income Tax.

Instead, the party plans to address what it calls “unfairness” in the tax system by:

• Abolishing non-dom status and replacing it with a modern scheme for people genuinely in the country for a short period.
• Ending the use of offshore trusts to avoid IHT.
• Ending private schools’ VAT exemption and business rate relief. They plan to use this additional tax revenue to train more teachers, citing an estimated shortage of 6,000.

Interestingly, Labour has also confirmed that, in a change from their previous stance, they have no plans to reintroduce the pension Lifetime Allowance (LTA).

The LTA capped the amount you could hold in your pensions without paying an additional tax charge when you accessed the funds. Chancellor Jeremy Hunt removed the additional LTA tax charge in April 2023, before abolishing the LTA altogether in April 2024.

Labour has decided not to reintroduce the charge to provide certainty for savers and because they say it would be too complex to bring back the former rules.

With regard to CGT and IHT, the Labour manifesto contains no plans to change the rules – although the party has ruled out applying CGT to primary residences.

When it comes to social care, the manifesto does not provide any detail on how much an individual should pay for personal care over their lifetime. However, Labour have confirmed they “will not disrupt” an existing plan to implement an £86,000 care cap from October 2025.

To help first-time buyers, Labour will also introduce a permanent, mortgage guarantee scheme, helping prospective homeowners who struggle to save for a large deposit. They say this measure would support 80,000 young people to get on the housing ladder over the next five years.

Finally, in a nod to the Truss administration’s “mini-Budget”, Labour says that they will take a strategic approach that gives certainty and allows long-term planning. They have committed to one major fiscal event a year, giving families and businesses due warning of tax and spending policies.

Liberal Democrats – raising the Personal Allowance and reforming Capital Gains Tax

While the two leading parties have published no plans for changes to the Personal Allowance, the Liberal Democrats have made increasing the allowance their priority, when the public finances allow.

They say this would benefit “the vast majority of families” and take more low-paid workers out of paying Income Tax altogether.

Making the tax system fairer is another key Liberal Democrat pledge, and they propose to do this by:

• Reversing tax cuts for the big banks, restoring Bank Surcharge and Bank Levy revenues to 2016 levels in real terms.
• Increasing the Digital Services Tax on social media firms and other tech giants from 2% to 6%.
• Introducing a 4% tax on the share buyback schemes of FTSE 100 listed companies, to incentivise productive investment, job creation, and economic growth.

The party also says it would “fairly reform” CGT to close loopholes exploited by the super-wealthy – although they have published no specific details of what changes they would make.

In addition, the Liberal Democrats plan to remove the two-child limit for Universal Credit and Child Tax Credit, as well as the benefit cap – the limit on the total amount of benefits one household can claim.

Reform UK – tax cuts for individuals and business

With Nigel Farage having called himself the real “leader of the opposition” in recent weeks, Reform UK has surged in the polls.

If they were to win power on 4 July, the party has pledged to:

• Increase the Income Tax Personal Allowance to £20,000. This would remove 7 million people from paying Income Tax and save every worker almost £1,500 a year.
• Increase the threshold for paying higher-rate Income Tax to £70,000.
• Reduce fuel duty by 20p a litre for both residential and business users.
• Scrap VAT on energy bills.

Reform UK also wants to increase the threshold at which IHT is paid, so it only affects estates worth more than £2 million. They also propose to significantly increase the Stamp Duty threshold when buying a residential property in England and Northern Ireland, from £250,000 to £750,000.

In addition to pledges concerning personal tax, the Reform UK “contract” also includes several policies to support British businesses:

• Lift the minimum Corporation Tax profit threshold to £100,000.
• Reduce the main Corporation Tax rate from 25% to 20%, then to 15% from year 3.
• Abolish IR35 rules.
• Lift the VAT threshold to £150,000.
• Abolish business rates for high street SMEs and offset this with an Online Delivery Tax at 4% for large, multinational enterprises.

Reform UK also wants to support marriage through the tax system by introducing a UK 25% transferable Marriage Tax Allowance when finances allow. This would mean no tax on the first £25,000 of income for either spouse.

Green Party – a new wealth tax and changes to National Insurance for higher earners

Unlike other leading parties who are seeking to levy no more taxes, the Green Party manifesto proposes to raise up to £151 billion a year in new taxes by 2029 – equal to around 4.5% of GDP.

One of the main components of this is a new tax on the wealthy, which would be levied at 1% a year on the assets of people with more than £10 million, and 2% on those with more than £1 billion. The party say this new tax would raise about £15 billion.

The Greens also propose to change NI rates and to charge the basic 8% rate on income above the Upper Earnings Limit (the rate is currently 2%). The party says that, if you earn £55,000, the additional amount you pay under their proposals would be less than £6 a week. If you earn £65,000, it would be about £17 a week.

Other manifesto promises include:

• A renewed pledge to scrap university tuition fees and bring back maintenance grants.
• Nationalising the railway, water, and big five energy companies.
• Making personal care free (support with daily tasks like washing, dressing and medication), similar to the system already operating in Scotland.

Finally, the Greens have also pledged to reform CGT to align the rates paid by taxpayers on income and taxable gains. They say this would affect less than 2% of all income taxpayers.

Other regional parties

Scottish National Party – seeking greater tax powers and fairer maternity pay

Under the terms of devolution, the Scottish parliament has the power to make changes to a range of taxes including setting the bands and rates of Scottish Income Tax.

In their manifesto, the Scottish National Party (SNP) say that they will demand the full devolution of tax powers to enable them to create a fairer system that protects public services and invests in the local economy.

For example, they are seeking the devolution of NI so they could ensure rates and thresholds fit the progressive Scottish Income Tax regime.

Like the Liberal Democrats, the SNP say they would also abolish the two-child limit for Universal Credit and Child Tax Credit.

Furthermore, the party wants to see maternity pay increase to 100% of average weekly earnings for the first 12 weeks of leave for new mothers. Thereafter it would be set at either 90%, or the statutory minimum allowance (currently £184 a week) for 40 weeks, whichever is lower.

Plaid Cymru – seeking a fairer settlement for Wales

Like the SNP, Plaid Cymru has also called for greater devolved powers. The party has backed devolution since the start and ultimately wants the country to run all its affairs, and to correct what it sees as “unfair” funding from Westminster.

The party wants to see a change in the welfare system, which is controlled at Westminster, with an increase in Child Benefit payments of £20 a week. They also want an extension of the energy “windfall tax” to help redress economic unfairness.

In line with the Green Party, they would also equalise CGT with Income Tax, raising between £12 billion and £15 billion.

Democratic Unionist Party  – a new funding model and protecting family incomes

As with other regional parties, the Democratic Unionist Party (DUP) says it will continue to lead the charge for a new “needs-based” funding model for the region to enable it to provide quality frontline services.

The DUP has also committed to “protect family incomes” and to continue to campaign with whichever party forms the next government to “fully restore Northern Ireland’s place within the UK […] including removing the application of EU law in our country and the internal Irish Sea border it creates”.

Sinn Féin – more devolved powers and constitutional change

While Stormont is responsible for a range of issues, which mainly cover everyday life within Northern Ireland, including agriculture, education, the economy, finance, health and infrastructure, it does not have the power to set its own Income Tax levels – and this is something Sinn Féin would like to change.

Constitutional change is also a key part of the manifesto, although the party has published no timescale for a border poll as the timing remains in the hands of the Westminster government.

Get in touch

If you have any questions about how the general election could affect your finances, please get in touch.

The content of this article is intended for general information purposes only. The content should not be relied upon in its entirety and shall not be deemed to be or constitute advice.

Retirement might be a chapter of your life you’ve been looking forward to for years. Perhaps you’ve been daydreaming about how you’ll make use of the extra time, or you’ve already planned an adventure to kickstart your life after work.

Yet, for many people, retirement can be a difficult adjustment.

While work often means less freedom, it might provide you with a sense of purpose and a structure to your days and weeks. Suddenly stepping away from a routine you may have followed for decades can be jarring. So, if you feel adrift when you retire, you’re not alone.

Finding a new purpose you’re passionate about could be imperative to your happiness and wellbeing in retirement.

This practical guide offers some ways you could embrace a new lifestyle that balances freedom and purpose, including:

• Discovering your passions
• Finding a daily routine that works for you
• Prioritising your physical and mental health
• Making time to connect with people
• Playing a role in your community.

Download your copy of ‘How to find purpose and get the most out of your retirement’ to read practical tips and key areas you might want to consider when you retire.

If you have any questions about how to get more out of your retirement, please contact us.

In May, several of the Blue Wealth team enjoyed an early summer holiday.

Rob, Nathan, and Dan have all taken a well-deserved break from their busy working lives to spend time with family.

Read on to find out more…

Dan had a blast on a short city break to London where he met his new nephew!

Dan, his wife Sarah and their two children enjoyed a flying two-day trip to London to meet the newest addition to the family – Dan’s eight-week-old nephew.

The kids loved getting to know their new cousin and the grown-ups enjoyed a few cuddles with the little one.

Despite being short on time, the family also squeezed in a fun trip to London Zoo. Although the summer weather failed to appear – there was plenty of rain – a good time was had by all.

One of the day’s highlights was walking through the “rainforest” and seeing a sloth chilling out overhead while golden tamarin monkeys ran free around them!

The kids were excited about travelling by train and tube, and they now have a long list of places they want to visit in the city.

Dan and his family can’t wait to explore more of London and see their nephew again. And a return visit is definitely on the cards soon.

Rob enjoyed a sun-filled week in Portugal with his family

Rob jetted off for a relaxing half-term week in Quinta do Lago in Portugal, with his family.

They were happy to leave the British summer behind them and every day the weather was perfect – sun-filled blue skies and beautifully warm.

The most memorable moment of the trip for Rob was introducing his son, Jasper, to his first round of golf.

The family would love to return to Quinta do Lago, which was an ideal holiday spot. However, top of the wish list for their next trip is Croatia.

Nathan and his family had a fantastic 10-day stay in Rhodes

Nathan, his wife and their two children flew to the stunning Greek Island of Rhodes in May.

The trip was a real family affair as Nathan’s mother and father-in-law joined them for the first seven nights.

They all fell in love with the unique and beautiful old town, which is full of history and culture.

A highlight of the holiday was a boat trip to Symi island, which included a stop at St George’s Bay with its clear turquoise waters and wild, natural landscape.

The weather was fantastic – a consistent 25 degrees with a refreshing breeze.

Nathan and his family loved their stay on the island so much that they’re already planning a return trip. Next year they’ll be celebrating Nathan’s mum’s 70th birthday in Lindos, a medieval village in Rhodes.

Future holidays might also include a multi-centre visit to Thailand, Cambodia and Vietnam. Nathan has never visited this part of the world and is keen to tick it off his bucket list!

According to IFA Magazine, the Treasury raised £7.5 billion in Inheritance Tax (IHT) for the 2023/24 tax year. This record-breaking amount represents a 5.6% rise on the previous year.

What’s more, this figure is expected to increase further in the near future, as the IHT-free threshold, known as the “nil-rate band”, is currently frozen at £325,000 until 2028.

There is usually no tax to pay on any inherited wealth that falls below this. Additionally, if you leave your home to your children or grandchildren you could boost your tax-free threshold to £500,000 by using your residential nil-rate band, which is £175,000 (2024/25).

However, your beneficiaries may have to pay IHT – the standard rate is 40% – on any amount of your estate that exceeds these thresholds at the time of your death.

Fortunately, careful financial planning could help you to reduce a potential IHT bill. So, read on to discover three clever ways to avoid your wealth being eroded by IHT and leave your loved ones with as much of your estate as possible.

1. Gift assets to your family during your lifetime

Gifting money during your lifetime could be a helpful way to reduce the size of your estate for IHT purposes. What’s more, you can enjoy seeing your loved ones benefit from your gift.

So, it’s not surprising that this type of gifting has become a popular way for adults in the UK to pass on their wealth. According to the British Retirement Survey 2023, 1 in 10 British adults aged 40 or over have made a substantial gift of this kind during the last three years.

Here are three useful ways to gift money to your family during your lifetime:

• Annual exemption – You can give away gifts worth up to £3,000 each tax year (2024/25) without them being added to your estate. If you have unused annual exemption from the previous tax year, you can carry this forward for one year. You can also choose whether to use your exemption on one person or split it between several.
• Small gift allowance – You can give an unlimited number of gifts worth up to £250 each tax year. However, you can’t make a small gift to anyone who you have used another gifting allowance on.
• Gifts for weddings and civil partnerships – You can give a tax-free gift to someone who is getting married or starting a civil partnership. The amount you can give depends on your relationship to the recipient. For example, in 2024/25, you could gift up to £5,000 to your child without incurring tax, but only £2,500 to your grandchild or great-grandchild, and just £1,000 to any other person.

An underused yet potentially valuable option is to give “gifts out of surplus income”. According to the Telegraph, only 430 families used this IHT tax break in the 2021/22 tax year, and yet, it could allow you to provide potentially uncapped and ongoing financial support to your family.

To qualify for this exemption, your gifts must be regular payments from income (not capital), and you must be able to maintain a reasonable standard of living while you’re making the gifts.

Beyond the exemptions outlined above, your beneficiaries may have to pay IHT on any gifts you make within seven years of your death. So, if you’re considering using gifts to help reduce a potential IHT charge, it may be sensible to do this sooner rather than later.

2. Boost your pension and pass it on to your loved ones

Your pension may be one of your most valuable assets and it can be a tax-efficient way to pass on your wealth.

This is because money held in a pension is usually considered outside your estate for IHT purposes.

So, if you have other assets to draw on for a retirement income, it might be worth preserving your pension to pass on to loved ones.

You might even choose to increase your pension contributions to bolster the sum you can pass on.

It’s worth bearing in mind that your chosen beneficiary may need to pay Income Tax at their nominal rate when they access your pension. However, this could still be less than they might pay in IHT if you pass your wealth on to them outside your pension.

3. Consider donating some of your wealth to charity

Leaving a charitable donation in your will could not only allow you to support an important cause, but it could also offer IHT benefits for you and your loved ones.

Any money you leave to a UK-registered charity will be free from IHT. So, donating to a good cause could potentially reduce the total amount of your estate on which IHT is payable.

Additionally, if you pass on at least 10% of your taxable estate to charity, the IHT rate your beneficiaries will pay on anything above the threshold will reduce from 40% to 36%.

A financial planner can help you navigate these complex rules and create an estate plan that allows you to pass on your wealth as tax-efficiently as possible.

Get in touch

If you’d like to create an estate plan that allows you to reduce a potential Inheritance Tax bill and pass on more of your wealth to loved ones, we can help. Please email hello@bluewealth.co.uk or call us on 0117 332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

Blue Wealth Ltd is not responsible for the accuracy of the information contained within linked sites.

Blue Wealth Ltd is an appointed representative of Best Practice IFA Group Ltd, which is authorised and regulated by the Financial Conduct Authority.

The Financial Conduct Authority does not regulate estate planning.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

Workplace pensions are regulated by The Pension Regulator.

In April, we held our annual golf day, which was a huge success and thoroughly enjoyed by all who attended.

Read on to find out more about the event and Rob’s Easter holiday in Cornwall.

Our annual golf day was a roaring success

We held the Blue Wealth annual client golf day on Thursday 18 April at Bristol and Clifton Golf Club – an excellent venue with a beautiful, immaculately tended, mature parkland golf course.

Fortunately, the weather was good all day, as can be seen from the pictures – nothing but clear blue skies and sunshine.

We were delighted to welcome more than 30 guests to the event, which kicked off at 8 am with bacon rolls and coffee. Some eager participants even squeezed in a little extra practice before the first tee-off at 9 am.

It was an excellent day of play, with Nick Hendy winning on count back and Garth Bennet – last year’s winner – matching his record and winning closest to the pin. Patrick Jones, who travelled from Essex that morning, won longest drive!

We rounded off a full day of action with an excellent two-course dinner, good conversation, and plenty of laughter.

This annual event is a fabulous opportunity to connect with our clients, colleagues, and partners. We were especially pleased to have Laura from our chosen charity, Mothers for Mothers, in attendance.

This is an incredibly important organisation that offers maternal mental health and wellbeing support to women, birthing people, and their families in Bristol, North Somerset and South Gloucestershire.

We’re very proud to have raised more than £1,500 for charity and would like to thank all those who attended in support of this valuable cause.

We look forward to welcoming you back – and seeing some new faces – next year!

Rob enjoyed a family staycation in Cornwall

In April, it was Rob Bowers’ turn to take a break from the office.

As the founder and managing director of Blue Wealth, Rob is kept pretty busy at work. While he loves running the business, an Easter getaway to Cornwall provided some much-needed relaxation and precious family time.

Unfortunately, the weather wasn’t quite as kind to the Bowers family as it was to us on the annual golf day. But Rob, his wife, and their two young children braved the storms and had a blast on the beautiful yet breezy Cornish coast.