Client login

The Role of Insurance Protection

Insurance protection is hardly a glamorous purchase and generally people will avoid the topics of illness and death, but ensuring you have decent protection for your dependents is a must. Insurance protection is important no matter your employment, life stage, or the number of children you may have.

Considerations when looking at property as an investment

Historically, property alongside pensions has been one of the most common ways to invest in the UK. As many know, property is an asset class, just like cash, bonds and shares and can serve as a form of diversification when building an investment portfolio. In the UK, there have traditionally been many tax incentives for property investing. However, these are slowly being tapered back making other avenues of investing potentially more attractive.

Trump Tax Tinkering

Evidence based investment approach.

POTUS Donald Trump wants to over haul the current US tax system. Today US tax is a curate’s egg – partly good and partly bad. You have a mixture of high rates and generous exemptions which arguably can offset one another.

Mayday for the dollar?

Two weeks ago Theresa May’s call for a snap election in the UK may have stunned Westminster but it also caught currency markets on the hop. The pound enjoyed one of its best days in a decade rallying to a six month high against the dollar. It has certainly been noticeable for US taxpayers in the UK with an interest in “Cable” – foreign exchange market jargon for the sterling: dollar exchange rate (GBPUSD). Ahead of the election announcement the market was trading round 1.25 and since then GBPUSD has been as high as c. 1.2950 and is still just above 1.29 at the time of writing. Back in the middle of March it was just above 1.21.

Look to have a tax overlay to your saving plan to help save more money

Clearly defining your personal wealth goals and objectives is the first step towards determining an appropriate investment strategy and asset allocation to suit your needs. The additional value add comes with giving proper consideration as to how to meet your goals in the most tax-efficient and optimal manner. As a US person living in the UK, you want to make sure that you avoid the tax traps that are littered within the investment world to mitigate any overall costs of investing.

The importance of financial planning

Financial planning is often an area that takes a back seat in busy lives. When there is no specific deadline to make a financial decision, it is very easy to say that you will address it in the future when life becomes less hectic. Taking the time to review your financial position, your personal wealth goals and objectives and consider the implications of whether your strategy will appropriately meet those goals can be an important exercise. Ensuring that you have an effective and appropriate strategy will likely afford you future flexibility and peace of mind. Below we discuss the areas that are beneficial to consider and review. A few easy steps can ensure optimal wealth planning strategies.

Arising Basis Taxation and your Investment Portfolio

Upon arriving in the UK, most Americans are non-domicile for income tax purposes. Usually you can elect to pay tax on the remittance basis so that UK tax is only paid on foreign income or gains when they are brought into the UK. Once you have been resident in the UK for more than 7 out of the last 9 tax years you are taxed on the arising, or worldwide, basis unless an election is made to pay an annual Remittance Basis Charge (otherwise known as the RBC). Under rules that come into effect for the new UK tax year, this RBC can only elect to be paid for the tax years prior to meeting a UK long-term residency of more than 15 out of the last 20 years. For many Americans, paying the annual charge often does not make financial sense due to being subject to US tax on a worldwide basis. As a result, it is usually in your 8th UK tax year that you often find yourself dealing with worldwide taxation in two jurisdictions. Knowing what is tax-efficient from both a US and UK perspective becomes of utmost importance.

What is the Reconstitution Effect and How Does it Impact my Portfolio?

Exchange Traded Funds or ETFs, came into existence in the early 1990’s. They have grown tremendously in popularity by institutional and retail investors alike. As a refresher, ETFs are marketable securities that typically track an index, a commodity, bonds or a basket of assets. One of the major differences between mutual funds and ETFs is that the latter trades like a stock, meaning you can use limit orders, use margins, short positions, and trade throughout the trading session. In addition, like stocks, one of the most likable characteristics of an ETF is that it’s usually very inexpensive. ETFs offer a diverse range of options for investors seeking investments with low fees. From the days of Benjamin Graham to the present, value investors have always touted investments that are broad-based and low cost; ETFs fit the bill.  However, the benefits of ETFs do not come without trade-offs. In order to replicate the index, an ETF fund manager must sacrifice trading flexibility.