Article by Phil
January 2024 and December 23 news from Christina Clegg your local area Independent Financial Adviser:
- HMRC is threatening to crack down on individuals who have not declared gains from crypto trading and paid the capital gains tax. The amount possibly outstanding and unpaid is not known but could run into hundreds of millions.
- Former Labour chancellor Alastair Darling passed away in early December at the age of 70.
- Year on year the number of property sales has fallen by 17%.
- The top 100,000 earners in the UK pay 25% of all the country’s income tax. An average of over £550,000 a year each in tax. Up 18% on last year.
- Only 2% of clients surveyed by their local area Independent Financial Adviser said that Environmental, Sustainability and Governance (ESG) factors were important in their investment decisions.
- Annuity rates have increased by over 50% in the last two years according to research by Canada Life.
- Over 50% of all Bank branches have closed over the last 10 years.
- The UK economy contracted by 0.3% in October. Economists were predicting 0% growth, but the situation is worse than expected.
- Interest rates were held in December at 5.25% by the Bank of England.
- The Scottish Government has introduced a new advanced tax rate of 45% for those earning between £75,000 and £125,000. The top rate remains at 48% for those earning over £125,000.
- Inflation fell in November to 3.9%. Way below market expectations. On the back of the news the FTSE rallied to the delight of many local area Independent Financial Advisers and their clients!
- HMRC tax receipts for the 6 months from April to November were over £500 billion. Up £24 billion on the same period last year. The highest tax bill in history. Part of that increase included an extra £7 billion in business taxes.
- House prices fell by 1.8% in 2023.
- Over £4 billion was paid out in Premium Bond prizes in 2023. Including 24 £1 million prizes, one of which was won by someone only holding £3,000 in Premium Bonds. However, the overall prize fund rate is being cut to 4.4% from 4.65% from March onwards.
- Almost one third of 45- to 60-year-olds are not expecting to pay off their mortgages before retirement.
- According to Aegon over 50% of people are now feeling positive about their finances.
- Staff at The Pensions Regulator have voted to go on strike for a higher pay rise. Expect further delays.
- The average age of billionaires has fallen to 47. Interestingly there are more female than male billionaires in the UK.
- People are continuing to live longer. The latest figures show that the number of over 90’s is now 550,000 whilst the number of people over 100 years old is now over 15,000. It’s now estimated that half of the children born today will reach the age of 90. I wonder what the retirement age will be then?
- The economy grew by 0.3% in November after its 0.3% fall in October.
- National advice firm Fairstone has announced that its new standard ongoing service charge will be 0.8% of a client’s assets under advice. This is a reduction of 0.2% on their previous 1% charge. However, there will be additional charges for some additional services. Unlike your local area Independent Financial Adviser here at CCFPS, there is no minimum fee.
- Average petrol prices have fallen below £1.40, which is 50 pence per litre below the highest price back in July 2022.
- Inflation has increased to 4.0% up from 3.9% last month.
- A third of parents aged between 45 and 60 are supporting their adult children financially on a regular basis.
- Major financial services firm Abrdn has announced 500 job losses on the back of reporting that over £11 billion in funds had been withdrawn by customers.
- St James Place shares fell by 8% after further disappointing news about their performance. New funds coming in were down from £9 billion last year to just over £5 billion.
