What Didn’t Happen

• Tax-free pension lump sums remain unchanged. This is a rumour that has circulated for many years and once again proved unfounded.

• Income Tax rates were not increased—although changes elsewhere will still affect how much tax you pay.

• Cash ISAs have not been abolished, though the allowance for under‑65s will reduce in future years.

• Many changes will be phased in over several years, giving time to plan.

Stealth Tax Rises – What You Need to Know

The most significant announcement was the further extension of the freeze on Income Tax and National Insurance thresholds—first frozen in 2021 and now scheduled to remain unchanged until 2031.

This continues a trend where other allowances have not increased for many years some of these are:

• Inheritance Tax: Nil Rate Band (£325,000 since 2009), Annual Gift Exemption (£3,000 since 1981), Small Gift Exemption (£250 since 1981)

• Maximum Pension Tax-Free Lump Sum: £268,275 (since 2024)

• Personal Allowance taper applying once income exceeds £100,000 (unchanged since 2010)

These freezes appear to be the preferred method of increasing tax revenue and mean more people will gradually pay higher levels of tax. Our role is to help ensure your finances remain as tax‑efficient as possible while still aligning with your long-term objectives.

Other Key Announcements Affecting Financial Planning

(Effective from 6 April in the year stated)

• State Pension to increase by 4.8% in 2026

• Dividend tax rates to rise by 2p from 2026

• Property and savings income tax rates to increase by 2p from 2027

• Cash ISA allowance for under‑65s to reduce to £12,000 per year from 2027

• “Mansion Tax” for homes valued above £2 million from 2027

• Consultation on a Lifetime ISA replacement – details to follow

• Salary sacrifice arrangements to attract National Insurance from 2029

• Venture Capital Trust (VCT) income tax relief to reduce from 30% to 20% from 2026

Opportunities and Next Steps

While several measures will gradually increase tax liabilities, early planning can help minimise the impact. Areas we will continue to focus on include:

• Optimising pension contributions

• Making full use of allowances while they remain available both when saving and taking income.

• Reviewing investment wrappers (ISAs, pensions, bonds, etc.)

• Considering intergenerational planning opportunities

• Evaluating the impact of property‑related changes

We expect to pick up these themes with you at your annual review, but if you wish to discuss at an earlier point please contact your adviser.

Kind Regards
Paul Richardson BA (Hons), FPFS, Cert SMP
Chartered Financial Planner
Financial Planning Director
​

​​Risk Warnings

• The value of an investment and the income from it could go down as well as up.
• All investing is subject to risk, including the possible loss of the money you invest.
• Past performance is not a reliable indicator of future results.
• Diversification does not ensure a profit or protect against a loss.
• Please remember that all investments involve some risk. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income
• This communication is for general information only and is not intended to be individual advice. It represents our understanding of law and HM Revenue & Customs practice as at 28th November 2025. You are recommended to seek competent professional advice before taking any action.

In the budget last October, Rachel Reeves announced plans to include pensions in estates for the purposes of Inheritance Tax (IHT). This is a change and will impact many families.

The changes are not until April 2027 so the current rules still apply, later in this email we will cover the changes, but first we must not overreact. Pensions remain an excellent savings vehicle.
This email is an overview, please speak to your adviser if you wish to discuss further.

Why Pensions remain attractive

• Inheritance Tax – Unused pensions can usually still be passed to a spouse or civil partner free of IHT
• Tax relief on personal contributions – HMRC tops up at your marginal rate, with some individuals able to achieve effective relief of up to 60%
• Salary sacrifice – saves Income Tax and National Insurance.
• Employer contributions – additional contributions on top of your own contributions.
• Business owner advantage – company pension contributions can be treated as an allowable business expense, reducing Corporation Tax.
• Tax-free investment growth – no Capital Gains Tax or Income Tax within the wrapper.
• 25% of the fund available tax-free – when you access the pension there is a potential for a lump sum or income stream tax free. This is subject to limits.
• Flexible access – draw income in a way that suits your tax position.
• Maximising Inheritance – Your beneficiaries may still pay less income tax than you especially if you die before age 75.

What are the draft rules? 

• From 6th April 2027, most unused pension funds and death benefits will be included in the value of a person’s estate for inheritance tax purposes.
• For any pension death benefits passing to a surviving spouse, civil partner, registered charity or political party, the existing exemptions will remain.
• Personal Representatives will be responsible for reporting and paying any inheritance tax due on unused pension funds..
• Pension Scheme administrators will have new duties to support Personal Representatives in paying inheritance tax including a new Pension Inheritance Tax Payment Scheme.

Are there any pensions that are exempt from the rules? 

• Joint Life Annuities
• Death in Service schemes
• State pensions
• Dependent’s scheme pensions from money purchase schemes and Defined Benefit Schemes

What will we be reviewing with you.

Marriage/Civil Partnership! 
If you’re not married to your partner then get it done. Not for romance, for tax reasons – this includes civil partnerships.
Spending
The easiest way to pay no Inheritance Tax is to spend the money, however this is only if you have enough money to support your lifestyle for the rest of your life.
Gifting
There are many ways to gift excess money, both directly and indirectly.
Using Inheritance Tax exemptions 
Are you using the full potential of exemptions available?
Investments outside of Pensions
There are still investment solutions outside of pensions that can qualify for Inheritance Tax exemptions. If suitable, we will discuss how they fit your objectives.
Life Assurance
If you can’t afford to give money away, you may be able to insure the liability.
Review Expression of Wish forms
Who gets the money when you die and what is the most tax effective way.
Annuities
The balance between guaranteed income and passing an inheritance is changed by these rules.
Review your Wills
Do the new rules change the balance of your wishes?

Kind Regards
Paul Richardson BA (Hons), FPFS, Cert SMP
Chartered Financial Planner
Financial Planning Director
​

​​Risk Warnings

• The value of an investment and the income from it could go down as well as up.
• All investing is subject to risk, including the possible loss of the money you invest.
• Past performance is not a reliable indicator of future results.
• Diversification does not ensure a profit or protect against a loss.
• Please remember that all investments involve some risk. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income
• This communication is for general information only and is not intended to be individual advice. It represents our understanding of law and HM Revenue & Customs practice as at 15th September 2025. You are recommended to seek competent professional advice before taking any action.

US equities fell in the first quarter of 2025 with Information Technology and Consumer Discretionary sectors posting the steepest declines. China’s Deepseek caused investors to reassess growth expectations around AI and the US leadership in the field and as the AI theme has powered stock market returns in recent years, this news put pressure on some of the largest stocks of the index.

We can’t ignore that Trade tariffs were another significant theme in the first half of 2025. On 2nd April or “Liberation Day”, the Trump administration announced a broader swathe of tariffs in addition to those already announced on Mexico and Canada and certain goods. The markets reacted with fear and further losses were seen across a broad spectrum of equities. Gold became a temporary safe haven amid the market volatility.  No sooner had the Trump administration announced the new global tariff regime that was due to start one week later, a 90-day pause was announced for all but China which saw duties increase to 125%. On 12th May 2025 a 90-day tariff reduction between the US and China was announced which saw US markets surge with many of the losses from April recouped.

The Eurozone market did well with investors looking to European equities in the wake of the Deepseek sell off.  Some of these early gains were wound back following the global tariff announcements with the automobile sector being the first to feel the effects of investor concern but following the announcement of the 90 days pause, markets regained some lost ground.

In the UK, large cap companies saw growth in the first quarter although sentiment towards UK Small and Mid sized companies remained cautious due to the economic outlook. The pledge from the UK’s largest pension funds in May to invest at least 10% of their assets in unlisted markets by 2030 is expected to help bolster the AIM market and smaller company sector.

In mid May, the UK and EU announced a new agreement which included fewer restrictions on British food exports, improving energy security and a defence and security pact that could pave the way for British companies to take part in a €150 billion programme to rearm Europe.  Although this announcement, along with a new trade deal with the US and India will unlikely lead to an immediate economic boost, it could lift business confidence and attract more investment. 

Michelle Gardner FPFS, on behalf of the Fairey Associates Investment Committee
Chartered Financial Planner
Senior Paraplanner 

Risk Warnings

• The value of an investment and the income from it could go down as well as up.
• All investing is subject to risk, including the possible loss of the money you invest.
• Past performance is not a reliable indicator of future results.
• Diversification does not ensure a profit or protect against a loss.
• Please remember that all investments involve some risk. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income
• This communication is for general information only and is not intended to be individual advice. It represents our understanding of law and HM Revenue & Customs practice as at 9th June 2025. You are recommended to seek competent professional advice before taking any action.

The sun has been out, the temperature is rising and April’s sporting occasions have started. We have a new tax year, upcoming new rules and I have been spending time plodding the streets in preparation for the London Marathon. But we can’t talk about any of those until we talk Trump, Tariffs & the Stock Market.

TRUMP, TARIFFS & TRADE WARS

Our simple message here is hold tight, throughout history events happen that send markets tumbling, they also were then followed by recovery. At the end of the email you will see a graph of the US market over the long term, whilst drops can seem large at the time they are mere blips over the longer term.

When we boil down any market drop, the key is normally “uncertainty”. By that I mean that the new events mean that what was previously expected is not going to happen and that the market needs to reassess. The problem at this point is that nobody knows how, in this case, the tariffs and potential trade wars will develop, whether this will force economies into recession or whether we will just look back at a “storm in a teacup”. When you don’t know this you cannot reassess how you expect individual companies and assets to perform.

To use a completed scenario we can cast our minds back 5 years to March 2020. At this point, markets were in turmoil as the spread of Covid, potential lockdowns & other worse case speculation worried everybody. Key questions such as “what does a lockdown look like?”, “will companies go bust?”, “what will government do to support?” were all yet to be answered. Once they were answered, which in the UK was at the point Boris Johnson announced the first lockdown and as the furlough scheme was announced, the markets were able to settle, reassess and realise the panic had been for a scenario worse than the reality. The market recovered from there.

As always we review our positions and are currently starting to complete our full annual review. The Trump unpredictability factor is likely to be a theme for the next 4 years, but investors will still be invested after he is gone and companies will find ways to adapt to the environment.

OPPORTUNITIES

For those of you who have investments with potentially taxable gains, this may be an excellent time to move to more tax efficient investments as the potential tax has reduced. If you make lump sum contributions to pensions or ISAs, it is now a lot cheaper to get into the market.

TAKING MONEY OUT

On the flip side it is a less ideal time to take money out of investments, if possible, it is one of the reasons we always encourage you to have a good cash buffer. If you need money out then please speak to your adviser about options.

PENSION CHANGES

You may already be aware of the headline changes announced in the October budget, however we are still awaiting the policy detail that will form the basis of our advice in this area. Expectations are this will be published as late as July, of course, once we know more we will speak to you about the individual impact.

Pension funding remains the most tax efficient way to save for retirement and even with the prospective changes, for most people, it is the best way to invest available.

LONDON MARATHON TRAINING

Firstly, many thanks to those of you have supported me & my charity the NSPCC. I really appreciate it. My race number will be 61191 and can be tracked online.

As I plodded around over the last week it occurred to me that running a marathon is a good analogy for what we are going through with Trump. If you take each mile as a year and equate that to your investing journey. The current situation is the first 100 metres, you might still be behind the person who sprinted off in front of you after the first mile or two, but it is highly unlikely they will still be ahead at the finish. Do not worry too much, the current situation will not last forever.

Paul Richardson BA (Hons), FPFS, Cert SMP
Chartered Financial Planner
​Head of Financial Planning

Risk Warnings

• The value of an investment and the income from it could go down as well as up.
• All investing is subject to risk, including the possible loss of the money you invest.
• Past performance is not a reliable indicator of future results.
• Diversification does not ensure a profit or protect against a loss.
• Please remember that all investments involve some risk. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income
• This communication is for general information only and is not intended to be individual advice. It represents our understanding of law and HM Revenue & Customs practice as at 9th April 2025. You are recommended to seek competent professional advice before taking any action.