With Euro 2020 underway (don’t let the date confuse you), the Wimbledon grass renewing its familiar battle with the rain and the Tokyo Olympics apparently still around the corner, we might be forgiven for feeling that everything is already back to ‘normal’. The delayed release of full restrictions, however, coupled with increased cases of the Delta variant mean there is still some way to go. But the curve appears towards optimism as the summer wears on.
That feeling has also reached the financial markets, as we explore in the latest, summer edition of our client newsletter. With the Bank of England lifting its ban on dividend payments, more companies are likely to either reinstate or increase cut pay-outs over 2021.
Our feature looks at the future of inheritance tax. With rising house price and the IHT threshold, already unchanged for over a decade, frozen for a further five years, what once may have seemed a remote tax for the rich is now affecting more and more estates. Yet more than half of over 55s have no understanding of how this tax will affect their assets and consequently their legacy. We look at the current IHT gifting and allowances and consider the changes suggested by two recent reports that the Chancellor could incorporate in the autumn Budget.
Good news for the housing market is the increasing number of people buying second homes. The stamp duty holiday boosted this area of the property market again, with people buying for their own use as well as holiday lets and the wider rental market. There are several ways to manage a property, depending on your requirements, so our story gives an overview of the options.
Of course, many are feeling stretched from the difficult past 18 months and so we highlight options for families to make the most of the tax reliefs and allowances. Sometimes a transfer to a partner or a slight increase to a pension contribution can make a significant difference.
Our next update will come in the autumn, when the second Budget of 2021 will be looming, and we will be bracing for the second wave of Covid-19 repayment plan measures.