Cash in the bank feels great – especially after a year like 2020, which has shown the importance of having a strong emergency buffer. However, is your cash really working for you? Inflation (i.e. the “cost of living”) stood at around 0.7% in 2020, yet interest rates on easy-access UK savings accounts are currently barely breaking even with this. Therefore, those with large cash savings are likely missing out higher returns offered elsewhere – and may even lose money in real terms later this year if inflation rises, as it might indeed do. As such, what are some other options?
Did you know that there’s a limit to how much you save into a pension? In 2020-21, this “lifetime allowance” is set at £1.0731 million – with 55% tax levied on any withdrawals which exceed this amount (or 25% when taken as income). Unfortunately, many people in the UK are unaware of this limit throughout their careers, only to face difficult and costly decisions as retirement nears and the realisation dawns. Here at WMM, our aim is to help people avoid these kinds of errors and enjoy their hard-earned wealth once their careers wind down. Below, you’ll find some ideas about how to avoid breaching the lifetime allowance – as the rules currently stand.
The UK’s four-year wrangling with the EU for a Brexit “trade deal” has finally ended. At 11pm on the 31st of December 2020, the “transition period” – during which the EU’s rules for trade, travel and business temporarily still applied to the UK – ended. From the 1st of January 2021 the relationship between the UK and EU will be governed primarily by the formal Brexit deal that has been agreed.
Many people think that a will’s main purpose is to ensure that your possessions go to the right people upon your death. This is partly right, but a will also holds immense power to help reduce a future inheritance tax (IHT) bill if you plan it carefully. In 2019-20, the UK government collected £5.13bn in IHT receipts – much of which was needlessly paid. How, then, can you ensure that you keep as much as your hard-earned wealth as possible within the family?