Money purchase pension annual allowance penalties – pick a number - Pembroke Financial

Money purchase pension annual allowance penalties – pick a number, any number.

Freedom of Information (FoI) requests have highlighted a lack of HMRC’s knowledge about how many people have been hit with pension annual allowance penalties and the complexities around finding out. The Money Purchase Annual Allowance (MPAA), which effectively sets the tax-efficient ceiling on annual pension contributions, used to be a subject of little interest, even among pension professionals.

New headaches for landlords - Pembroke Financial IFA's

New headaches for private landlords

Private landlords could find it harder to evict tenants in future, thanks to new government legislation. Landlords will no longer be able to serve tenants with a ‘section 21 notice’, which effectively enables them to cancel the tenancy at the end of the term, without giving any formal reason. This is currently allowed in England and Wales, although the practice has already been outlawed in Scotland….

Personal Pensions Advice from Pembroke Financial Services

When it comes to funds, the best investment advice is personal

The recent trials of the Woodford fund highlight the importance of personal advice on your investments. The suspension of dealings in this heavily promoted UK equity income fund has exposed the blurred line between advice and guidance. According to the Investment Association (IA), there are around 3,500 funds on sale in the UK. The IA sorts these into over 30 individual investment sectors, although about 10% are listed as being in the unclassified sector…

Investor expectations have been dialled up by the market returns recently

Inflated expectations

Investor expectations have been dialled up by the market returns of recent years. Independent Financial Advisers will need to add perspective and gently talk those expectations down. The latest Schroder Global Investor Study revealed some fascinating, and somewhat disconcerting, results.
– Investors expected an average annualised return of 10.7% from their portfolios over the next five years
– The younger the client, the higher the expectation.
– With an ageing population, low inflation and poor productivity, returns are likely to be lower from here.

dividends wobble with 40 percent cuts

Dividends wobble with 40% cuts

From a record high in the first quarter of 2019, dividends were knocked by some high-profile cuts in May. Recent dividend announcements have been an unwelcome reminder for some investors that peaks also have downsides. Dividends matter to investors in UK shares. The UK stock market has historically been one of the higher yielding of the world’s major share markets. For example, on 24 May the average dividend yield in the UK, based on the FTSE All-Share Index, was 4.26% against just 1.94% across the Atlantic, as measured by the S&P 500 Index…

Ripple effect widens for China investors - Pembroke Financial IFA's

Ripple effect widens for China investors

It is not only Chinese mainland shares which are now attracting investor attention. China is in the investment news again as Bloomberg opens its bond market index to mainland Chinese securities. Is it time to review your international portfolio? Over the past few years, the relevance of shares quoted on the mainland Chinese stock exchanges to global investors has grown considerably. China has opened access to its share markets via the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock connect schemes.

ISA's - Happy 20th birthday!! - Pembroke Financial Brighton IFA's

ISA’s – Happy 20th birthday!!

ISAs celebrate their 20th birthday this April. If you haven’t reviewed yours in a while, this a good opportunity to ensure they are still the right vehicle for you. When the ISA was introduced in 1999, many thought it to be little more than a rebranding of the two schemes it replaced: the Personal Equity Plan (PEP) and Tax-Exempt Savings Account (TESSA)…

China emerges on to the investment stage - Pembroke Financial IFA's

China emerges on to the investment stage

Chinese investment markets set to become increasingly important part of investment portfolios as share of Emerging Markets Index likely to quadruple. China has been at the forefront of the headlines recently, whether about the protracted trade dispute with the US, the alleged dangers of using Huawei’s 5G equipment or the first landing of a spacecraft on the far side of the moon…

One more twist on buy to let - Pembroke Financial - Brighton IFA's

One more twist on buy to let

Buy-to-let investors will be hit by the latest phase of tax changes coming in from April, coupled with changes to CGT payment terms. When George Osborne announced in his summer 2015 Budget a variety of tax changes aimed at discouraging buy-to-let (BTL) investment, they came as a surprise. To ease their impact, the then Chancellor phased in the most significant reform, a revised treatment of interest relief, over four years and deferred its start date to April 2017. Anecdotal evidence suggests some BTL investors did not know what had happened until they found a larger than expected tax bill in January….