I trust you are well and enjoying the Easter break.
Kindly find below my Annual Market Analysis (Est Read 13 min 28 sec).
As the first signs of spring appeared in the UK, Chancellor Jeremy Hunt made a bold announcement that sent shockwaves through the UK pension system.
Revealing that Lifetime Allowance would be abolished. The Tories policy, was wrapped as ‘helping the NHS’ to maintain senior doctors, but is little more than a tax-break for some of the UK’s wealthiest individuals. Many of whom also happen to be key party donors. I’m verging into politics!
He also raised the annual pension contribution limit from £40,000 to £60,000 from 6th April 2023. A policy heralded as ‘helping the people’. However, it can again be argued, this policy only helps those fortunate enough to have an annual surplus of £60K. Nonetheless, this generous allowance should be taken advantage of, drop me or your IFA an email to learn more.
The S&P 500 finally stopped it’s downward rot in Q1 2023. Although considering that the S&P 500 dropped -19.4% in 2022 (worst year for equities since 2008), investors were due some rest bite. If you are yet to get into the markets or explore your pensions transfers, now can be a good time.
The UK Government also announced a corporation tax increase from 19% to 25%. While still behind all other G7 members, whose corporation tax rates range from 26% to 30%, many critics suggest this was ill-timed. This will be welcomed by Amazon who’s UK corporation tax bill in 2021 was £0, despite revenue of £23.19bn for their whole UK business.
Only time will tell how these changes will play out, but for now, the financial and economic landscape in the UK has been forever altered by some of these unexpected moves.
The UK budget has reminded us again just how quickly pension policy can change and the value of being in touch with an Adviser.
Enjoy the read and drop me or your Adviser an email if you have any questions.
CEO, Founder & Senior IFA