Economic recovery and inflation are increasingly being shaped by supply-chain issues: notably labour shortages and production bottlenecks. Manufacturers say a lack of equipment and materials are limiting production, while transport costs have surged. These shortages could have a lingering impact on inflation, which is now being felt across a range of sectors. Labour shortages are forcing employers to raise wages. Provided the business cycle does not end abruptly, the environment still favours equities over bonds. Nevertheless, the risk for markets is that higher inflation becomes more entrenched, forcing central banks to raise rates. SUBSCRIBEStay up to date with our latest insights, subscribe to our mailing list here and choose the topics you’re interested in: https://bit.ly/2SKomDqGET IN TOUCH:Have any feedback? We're listening, email us at: podcast@smithandwilliamson.comFOLLOW US:Twitter - @SmithWilliamsonLinkedIn - @Smith&WilliamsonThis episode was recorded on 30/09/2021Capital at risk. Please remember the value of investments and the income from them can fall as well as rise and investors may not receive back the original amount invested. Past performance is not a guide to future performance.This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.Smith & Williamson Investment Management LLPAuthorised and regulated by the Financial Conduct Authority. Registered No 580531 

S&W The Pulse

Inflation: passing or permanent? | October 2021

In this episode, Ami Jack Head of National Tax and Susan Roller a Partner in our Private Client Tax team discuss offshore companies owning UK residential properties and key considerations you need to be aware of, including those arising as a result of the planned increase in corporation tax.Key discussion points to note in this episode:Offshore companies have been subject to a series of tax changes for the last 8 years and the corporation tax increase in April 2023 to 25% also affects all these companies.The new 25% rate applies to all non-resident companies regardless of the level of rental income – this is an increase from the current rate of 19% and will apply on any gains on sale.If you’ve got a UK residential rental property in a company that you are considering selling, think about exchanging contracts pre 1/4/23 so gain taxed at 19%. The Capital Gains Tax (CGT) will be based on market value at April 2015, which could be 20% gain on average.  The 7.8% indexation allowance (April 2015 to when stopped in Dec 17) wipes out half the gain and legal costs and agents costs may cover some of the rest.For some, it may be worth considering moving the management and control of the company to the UK so ‘normal’ rates of Corporation Tax apply if rents are lower (under £50k).The 25% rate of tax could still apply if there are large gains on a sale. It might be possible to transfer the property at no tax cost to a UK company but tax on gains and Stamp Duty Land Tax (SDLT) will need reviewing . If a company is paying Annual Tax on Enveloped Dwellings (ATED) (£59k for £5m+ , £118,6000 for £10m, £237,400 for £20m ) the tax cost to unwind may only be a few years of ATED costs.  Moving forward, private residence relief might be available at personal or trust level to cover future gains.  If you rebase to April 2015, you’ll need a valuation. For ATED, properties will need to recheck bandings based on April 22 values for paying ATED in April 2023 so it fits in well to get valuations for both at once. Some may have already got an April 15 valuation when ATED was lowered from £2m to £500k.Given the fact that everyone has the same April 2023 deadline it makes sense companies review their long term plans and, if they are happy retaining the property, consider whether the current structure is the best one for tax purposes. There may, of course, be many reasons the property should be kept in a company!  SUBSCRIBE:Stay up to date with our latest insights, subscribe to our mailing list here and choose the topics you’re interested in: https://bit.ly/3ArrCoaGET IN TOUCH:Have any feedback? We're listening, email us at: podcast@smithandwilliamson.comFOLLOW US:Twitter - @SmithWilliamsonLinkedIn - @Smith&Williamson This episode was recorded on 15/09/2021This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.Tax [and Government] legislation is that prevailing at the time, is subject to change without notice and depends on individual circumstances. Clients should always seek appropriate tax advice before making decisions. HMRC Tax Year 2021/22. 

Offshore companies owning UK residential property

As Ghandi once said ‘The future depends on what we do in the present’. In today’s episode we discuss how best to get your affairs in order for when the inevitable happens. A big part of that is making a will but there’s other things to consider. Our special guest; Stuart Adams, a Solicitor and Legal Director in the Tax and Wealth Planning Team at Mishcon De Reya joins the conversation and demonstrates the importance of solicitors and financial planners working together to get the best outcome for the client.Source:Three in five (59 per cent) UK adults have not written a will, new research from Canada Life today reveals. This equates to 31 million people, whose property, financial and other assets could be left to someone they have not chosen when they die.https://www.wealthadviser.co/2020/09/28/290151/thirty-one-million-uk-adults-dont-have-will-place-says-new-research SUBSCRIBE:Stay up to date with our latest insights, subscribe to our mailing list here and choose the topics you’re interested in: https://bit.ly/3ArrCoaGET IN TOUCH:Have any feedback? We're listening, email us at: podcast@smithandwilliamson.comFOLLOW US:Twitter - @SmithWilliamsonLinkedIn - @Smith&Williamson This episode was recorded on [09/08/2021]This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned. 

Getting your affairs in order

Once President Nixon had abandoned the gold standard, the US could expand its money supply without being constrained by its holdings of bullion. This made it easier to issue debt to finance growth. This ability has been important in supporting the economy during the pandemic. Unprecedented monetary stimulus saw the pandemic-led recession last just two months, the shortest ever, but as financial markets grow increasingly dependent on the waves of central bank liquidity, there may be aftershocks as it is withdrawn. SUBSCRIBEStay up to date with our latest insights, subscribe to our mailing list here and choose the topics you’re interested in: https://bit.ly/2SKomDqGET IN TOUCH:Have any feedback? We're listening, email us at: podcast@smithandwilliamson.comFOLLOW US:Twitter - @SmithWilliamsonLinkedIn - @Smith&WilliamsonThis episode was recorded on 31/08/2021Capital at risk. Please remember the value of investments and the income from them can fall as well as rise and investors may not receive back the original amount invested. Past performance is not a guide to future performance.This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned. Smith & Williamson Investment Management LLPAuthorised and regulated by the Financial Conduct Authority. Registered No 580531

The "Nixon shock" remembered 50 years on | September 2021

In this introductory episode on transferring wealth, we touch on main issues families are facing and questions you should start thinking about to help you plan.When we refer to ‘wealth transfer’, we are referring to wealth cascading from the older generation to the younger generation – weather this is during the lifetime of the older generation or at death.SUBSCRIBE:Stay up to date with our latest insights, subscribe to our mailing list here and choose the topics you’re interested in: https://bit.ly/3ArrCoaGET IN TOUCH:Have any feedback? We're listening, email us at: podcast@smithandwilliamson.comFOLLOW US:Twitter - @SmithWilliamsonLinkedIn - @Smith&Williamson This episode was recorded on 19/07/2021This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.Tax legislation is that prevailing at the time, is subject to change without notice and depends on individual circumstances. Clients should always seek appropriate tax advice before making decisions. HMRC Tax Year 2021/22.Smith & Williamson Financial Services Limited Authorised and regulated by the Financial Conduct Authority. 

Wealth transfer considerations

Bond and equity markets are telling a different story about the global growth outlook: equity markets have rallied significantly since the start of the year, while treasury yields have trended lower. Both markets can’t be right.*We are sticking closer to the upbeat view taken by the equity market, believing that bond yields currently suggest excessive pessimism. That said, we are alert to a number of risks, including inflation and slowing global growth. * Source:  Refinitiv Datastream/Smith & Williamson, ONS, data as at 28 July 2021SUBSCRIBEStay up to date with our latest insights, subscribe to our mailing list here and choose the topics you’re interested in: https://bit.ly/2SKomDqGET IN TOUCH:Have any feedback? We're listening, email us at: podcast@smithandwilliamson.comFOLLOW US:Twitter - @SmithWilliamsonLinkedIn - @Smith&Williamson This episode was recorded on 03/08/2021Capital at risk. Please remember the value of investments and the income from them can fall as well as rise and investors may not receive back the original amount invested. Past performance is not a guide to future performance.This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.Smith & Williamson Investment Management LLPAuthorised and regulated by the Financial Conduct Authority. Registered No 580531

A tale of two markets | August 2021

Crytposassets have dominated the headlines for a while. The FCA have also recently published a research note that estimated 2.3 million people now hold cryptoassets in the UK. Despite this increase, they also suggest that the level of understanding of cryptoassets is declining.One of the key considerations is whether they are held for investment or trading purposes.  This will impact whether they are subject to capital gains tax or income tax.Income tax rates are currently higher than CGT rates that apply to investors.In most cases, cryptoassets are held as investments and profits on sale are subject to capital gains tax (CGT).Capital losses on cryptoassets can only be relieved against other capital losses, which is far more restrictive than trading losses.Crypto traders, just like those in stocks and shares, may instead find their profits are subject to income tax if the activity amounts to a trade; this is likely characterised by frequent buying and selling.There is a high hurdle to clear in order to meet the trading criteria and HMRC may challenge a taxpayers who reports a crypto loss as a trading loss.HMRC have taken the view that cryptoassets are situated for tax purposes where the owner resides. Should a taxpayer take a contrary view and HMRC challenge this, the tribunals may ultimately resolve this matter.Although often referred to as cryptocurrencies, there are not a currency.  As such, the usual CGT exemption for currencies does not applies.Therefore, if you buy your Tesla with you bitcoin, you are disposing of that bitcoin and need to assess whether you have made a gain for tax purposes.HMRC are yet to provide detailed guidance on the taxation of non-fungible tokens (NFTs). For UK tax purposes, NFTs are comparable to a contract and similar tax treatment may apply.  SUBSCRIBEStay up to date with our latest insights, subscribe to our mailing list here and choose the topics you’re interested in: https://bit.ly/3qFWRaLGET IN TOUCH:Have any feedback? We're listening, email us at: podcast@smithandwilliamson.comFOLLOW US:Twitter - @SmithWilliamsonLinkedIn - @Smith&WilliamsonThis episode was recorded on 06/07/2021 This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.Tax [and Government] legislation is that prevailing at the time, is subject to change without notice and depends on individual circumstances. Clients should always seek appropriate tax advice before making decisions. HMRC Tax Year 2021/222.  

Taxation of cryptoassets

In this episode Anne McClean and Dougie Cameron chat about the annual tapered allowance, as well as the annual allowance limits that can be saved into a pension each year, and the ability to carry forward unused annual allowance from the previous three tax years.In case you missed our lifetime annual allowance episode, have a listen here: https://bit.ly/360jywvArticles mentioned:The Annual Allowance - pension contributions 2020/21: https://bit.ly/3ysq8bgTapered annual allowance timebomb - https://bit.ly/3kdSm67Pension Planning (Tapered Annual Allowance): https://bit.ly/2TEWSQ3SUBSCRIBE:Stay up to date with our latest insights, subscribe to our mailing list here and choose the topics you’re interested in: https://bit.ly/3ArrCoaGET IN TOUCH:Have any feedback? We're listening, email us at: podcast@smithandwilliamson.comFOLLOW US:Twitter - @SmithWilliamsonLinkedIn - @Smith&WilliamsonThis episode was recorded on 24/06/2021This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.

Tapered annual allowance

In this episode we’ll be looking at why equities could win out over bonds in the second half of 2021.Investors are heading into the second half of 2021 in a buoyant mood after an encouraging first half of the year for markets, supported by accommodative policy and rising growth expectations1. Though the global growth spurt may peak sometime this year, in this episode, we suggest the fundamental backdrop for equities remains positive. Private consumption, the driving force for the GDP expansion and company earnings, is underpinned by healthy finances.  Higher inflation could create more market volatility. The prospect of higher interest rates could disproportionally affect the US and we see more opportunities in non-US stocks. Source: 1 Refinitiv Datastream, data as at 29 June 2021SUBSCRIBEStay up to date with our latest insights, subscribe to our mailing list here and choose the topics you’re interested in: https://bit.ly/2SKomDqGET IN TOUCH:Have any feedback? We're listening, email us at: podcast@smithandwilliamson.comFOLLOW US:Twitter - @SmithWilliamsonLinkedIn - @Smith&WilliamsonThis episode was recorded on 01/072021Capital at risk. Please remember the value of investments and the income from them can fall as well as rise and investors may not receive back the original amount invested. Past performance is not a guide to future performance.This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.Smith & Williamson Investment Management LLPAuthorised and regulated by the Financial Conduct Authority. Registered No 580531

Why equities could win out over bonds | July 2021

Whether or not it is practical for a business to have employees working overseas will depend on the business, but there are some benefits. In this episode on global mobility, we discuss key considerations businesses need to be thinking about.This is especially relevant now as the pandemic has had a big impact on how and where we work.  We are starting to adopt new ways of working again as restrictions begin to be relaxed.A key considering is whether or not to give employees flexibility to work outside the UK.  Businesses who choose to adopt international remote working arrangements may gain access to a more global and diverse talent pool, and also benefit from improved talent attraction and retention. There are, however, various tax, HR and legal considerations. To receive the latest tax updates, subscribe to our mailing list here: https://bit.ly/3qFWRaLThis episode was recorded on 23/06/2021This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.Tax [and Government] legislation is that prevailing at the time, is subject to change without notice and depends on individual circumstances. Clients should always seek appropriate tax advice before making decisions. HMRC Tax Year 2021/222. 

Global Mobility considerations for businesses

What do you need to be thinking about when you’re approaching retirement? In this episode Anne & Dougie discuss retirement planning and how peace of mind can be achieved.Topics covered in this episode: pension contributions, rental income, mortgages, cash deposits, the importance of budgeting, state pension and; what levels of income will you need in retirement.SOCIAL MEDIA:Twitter - @SmithWilliamsonLinkedIn - @Smith&WilliamsonCREDITS:Hosts: Anne McClean, Dougie CameronProducer: Laura BurrowsGET IN TOUCH:Have any feedback? We're listening, email us at: podcast@smithandwilliamson.comsmithandwilliamson.com This episode was recorded on 10/05/2021This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.Tax legislation is that prevailing at the time, is subject to change without notice and depends on individual circumstances. Clients should always seek appropriate tax advice before making decisions. HMRC Tax Year 2021/22.Smith & Williamson Financial Services Limited. Authorised and regulated by the Financial Conduct Authority

Retirement planning

In this episode we’ll be looking at the recent volatility in stock markets and whether concerns on inflation are justified.Markets were spooked by concerns of a stagflation environment of high inflation and low growth. This followed higher-than-expected US inflation, where April headline CPI rose 4.2% from a year ago - the highest rate for 13 years - and a disappointing US non-farm payroll number for the same month to raise investor concerns about a sustained recovery. However, given that US and global 2021 real GDP growth is expected to grow at its fastest rate for decades, the risk of stagflation seems low GET IN TOUCH:Have any feedback? We're listening, email us at: podcast@smithandwilliamson.comSubscribe to our mailing list here, select the topics you would like to be contact on: https://bit.ly/2Sqp4paFOLLOW US:Twitter - @SmithWilliamsonLinkedIn - @Smith&WilliamsonCREDITS:Hosts: Daniel Casali, Cherry ReynardProducer: Laura BurrowsThis episode was recorded on 27/05/2021Capital at risk. Please remember the value of investments and the income from them can fall as well as rise and investors may not receive back the original amount invested. Past performance is not a guide to future performance.This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.Smith & Williamson Investment Management LLPAuthorised and regulated by the Financial Conduct Authority. Registered No 580531

Equities are absorbing an inflationary side effect

Throughout this episode, Julia and Anthony describe some of the key changes to capital gains tax and inheritance tax that have been proposed by various bodies such as the Office of Tax Simplification, and explore how this could potentially impact you and your family.Julian Rosenbloom and Anthony Whatling, Partners in our Private Client Tax Services team, discuss the possibility of tax reform in the UK.  Throughout this episode, Julia and Anthony describe some of the key changes to capital gains tax and inheritance tax that have been proposed by various bodies such as the Office of Tax Simplification, and explore  how this could potentially impact you and your family.SOCIAL MEDIA:Twitter - @SmithWilliamsonLinkedIn - @Smith&WilliamsonCREDITS:Hosts: Julia Rosenbloom, Anthony WhatlingProducer: Laura BurrowsGET IN TOUCH:Have any feedback? We're listening, email us at: podcast@smithandwilliamson.comWant to know more about our Private Client Tax Services and how we can help you? Head here for more info https://bit.ly/3wPQy5YThis episode was recorded on 26/05/2021This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.Tax [and Government] legislation is that prevailing at the time, is subject to change without notice and depends on individual circumstances. Clients should always seek appropriate tax advice before making decisions. HMRC Tax Year 2021/22. 

The possibility of tax reform in the UK

In this episode we will be discussing capital allowances, in particular the super deduction.As an incentive to encourage and accelerate capital investment and drive growth, the Government announced a series of generous capital allowances measures in the recent 2021 Budget. Throughout this episode we’ll be discussing the background to the new relief and an overview of what it covers and how it works; some of the key issues we’ve noticed and have been discussing with our clients; and as well as the practical advice and assistance we’re able to provide to our clients. SOCIAL MEDIA:Twitter - @SmithWilliamsonLinkedIn - @Smith&WilliamsonCREDITS:Hosts: Zoe Thomas, Martin DyeProducer: Laura BurrowsGET IN TOUCH:Have any feedback? We're listening, email us at: podcast@smithandwilliamson.com This episode was recorded on 29/04/2021This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.Tax and Government legislation is that prevailing at the time, is subject to change without notice and depends on individual circumstances. Clients should always seek appropriate tax advice before making decisions. HMRC Tax Year 2021/22. 

Super Deductions for capital investment

In this episode We’ll be looking at what’s happening in markets with the vaccine roll-out underway and whether accommodative monetary and fiscal policy might come with an inflationary sting in the tail. FOLLOW US:Twitter - @SmithWilliamsonLinkedIn - @Smith&Williamson CREDITS:Hosts: Daniel Casali, Cherry ReynardProducer: Laura Burrows GET IN TOUCH:Have any feedback? We're listening, email us at: podcast@smithandwilliamson.comCheck out our podcast episode library here: https://smithandwilliamson.com/thepulse/Want to find out more about Smith & Williamson, visit: smithandwilliamson.com This episode was recorded on 29/04/2021Capital at risk. Please remember the value of investments and the income from them can fall as well as rise and investors may not receive back the original amount invested. Past performance is not a guide to future performance.This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned. Smith & Williamson Investment Management LLPAuthorised and regulated by the Financial Conduct Authority. Registered No 580531

Releasing the inflation genie out of the bottle | MAY 2021

Our podcast delivers practical insights on key personal finance and business questions. We feature discussions with our industry experts on tax, investments and real estate, plus interviews with leading entrepreneurs. We aim to help you make better decisions.

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