Trump’s tariffs twists and turns

You might have seen headlines recently about a US court ruling on Donald Trump’s global tariffs — and while it all sounds very American, there are real-world implications for investors here in the UK too.

To quickly recap: Trump’s sweeping tariffs on imports from countries like China, Canada, and even EU nations have been challenged in US courts. A recent ruling said he overstepped his powers, but an appeals court has now paused that decision. So, for the time being, those tariffs stay in place.

So why does this matter to us? Well, global trade tensions can ripple through financial markets. Tariffs typically increase costs for businesses, which can hit profits and, in turn, affect share prices, especially in sectors like manufacturing, tech, and retail.

If you’re invested in global funds or have exposure to companies that rely on international supply chains, this legal back-and-forth could impact returns. Volatility may increase if trade tensions flare up again or if Trump doubles down on tariffs ahead of the next US election.

On the flip side, some markets — like the UK — could benefit if countries start looking for new, tariff-free trading partners.

The key take way? It’s another reminder of why diversification and long-term thinking are so important. Trying to second-guess geopolitics rarely pays off, but a well-balanced portfolio can help you weather the storm — tariff tantrums and all.

If you have any concerns, please arrange a Forward Planning Meeting with the Advice Team. Our general rule will be ‘ignore the noise’ and trust in the long term strength of the great companies of the world.

Think you’ve nailed your Estate Planning? You might be surprised…

Research shows many people are still getting the basics of Estate Planning wrong. For example, nearly four in ten believe that if everything goes to their spouse, they’ll automatically avoid probate. Sadly, it’s not quite that simple.

Here are five common myths people often believe:

1. “If everything goes to my spouse, there’s no probate.” Not always true. Joint assets might pass directly, but anything in your sole name could still require probate.
2. “No Will? No problem – it all goes to family.” Not necessarily. Without a Will, the law decides who gets what – and that might not be who you’d want.
3. “I made a Will years ago – job done.” Wills should be reviewed regularly. Your circumstances change, and your wishes might too.
4. “I’ve got married since writing my Will, but that doesn’t matter.” Actually, marriage cancels an old Will unless it was written with the marriage in mind. Without an update, the law could override your intentions.
5. “I live with my partner – they’ll inherit everything.” Unfortunately, cohabiting partners don’t have automatic rights unless they’re named in a valid Will.

This is exactly why it helps to have a Financial Planning Team in your corner (though, of course, we would say that!). Getting proper Advice can help you avoid these pitfalls and make sure your estate ends up in the right hands, with as little stress and tax as possible.

Annuities…are they really the best option?

Annuities have been making a bit of a comeback, with nearly half of over-50s now recognising they offer a guaranteed income for life. That’s up from just 39% last year – a 25% jump in awareness. And with income certainty still a top priority for most people heading into retirement, it’s easy to see why they’re back in the spotlight.

But before jumping on the Annuity bandwagon, it’s worth digging a bit deeper. While they can offer peace of mind, Annuities aren’t always the most flexible or cost-effective solution.

Once you’ve bought an Annuity, that’s it – no going back. Your Pension pot is locked in, and if rates are low at the time, you could end up stuck with a lower income for life. They can be set up to protect against inflation or cover a spouse, but each of those extras chips away at the income you’ll actually receive.

And despite rising sales, many people still misunderstand them. Nearly half of over-50s don’t really know how Annuities work, and only a small minority are aware that health conditions can actually improve the rates on offer.

That’s not to say Annuities have no place – they can be useful as part of a wider plan. But for many people, a mix of drawdown, cash, and other investments can offer more flexibility and better long-term value.

If you think it’s time to re-consider your Retirement Income position, do arrange a Forward Planning Meeting with the Advice Team. 

Is the UK economy turning a corner – or just catching its breath?

Good news, the UK economy grew by 0.7% in the first quarter of the year – a bit better than expected. The chancellor called it “very encouraging,” and for once, there’s something positive to say about GDP. Consumer spending is up, business investment is improving, and services – from shops to finance – are leading the way.

But before we get carried away, let’s take a breath. This growth spurt came just before some major headwinds: US import tariffs kicked in in April, and UK employer National Insurance contributions went up. Many analysts think the strong numbers were boosted by businesses acting early to get ahead of those changes. So, while it’s great to see some life in the economy, it might not last.

There’s also the ongoing cost-of-living pressure, and any hint of higher mortgage rates could add more strain. Markets had been expecting interest rates to fall further this year, but strong growth might slow those plans down. That’s already influencing mortgage pricing, with some lenders raising rates again.

So, how optimistic should we be? Cautiously so. There’s no doubt the economy has shown resilience, but challenges remain – both at home and globally.

Inflation’s back – and it’s not messing about

April’s inflation figures just landed and, well… they’ve made a bit of a splash. The Consumer Prices Index (CPI) jumped to 3.5% – up from 2.6% in March – catching even the experts off guard. The sharpest monthly rise in over a year, and the fastest April spike since records began. So, what’s driving it – and what does it mean for your money?

Most of the rise is down to the basics: energy bills, water, council tax – all up significantly. Throw in pricier flights (thanks to school holidays and tax hikes), plus rising food and transport costs, and it’s no wonder wallets are feeling the pinch again.

So, what does this mean for you?

• Savings: If your interest rate isn’t beating inflation, your money’s losing value. Shop around – some easy-access accounts are still offering over 4.5%.
• Annuities: Level Annuities might look attractive upfront, but inflation could eat away at their value over time. Inflation-linked options offer long-term peace of mind, though the starting income is lower.
• Mortgages: Rates are creeping down for now (some deals even below 4%), but the inflation surprise could slow future rate cuts. If you’ve got a remortgage coming up, it’s worth locking in a deal early just in case.

Inflation might stick around longer than we’d hoped, so it’s a good moment to review your plans and book a Review Meeting with our Mortgage Specialist, Chris Arnold.

CGT and IHT on the rise

New figures from HMRC show that Capital Gains Tax (CGT) receipts hit £191 million in April, the highest ever for the first month of a tax year – up 22% from last year. So, while the government might have missed its ambitious CGT forecast, it’s clear that more people are paying more tax on their gains.

This jump comes after some major CGT reforms were announced in the Autumn Budget, with expectations that receipts Will nearly double by 2029/30. Even though the Treasury is still £2.6 billion behind where it hoped to be, the long-term trend is up, especially as more wealth changes hands in the coming years.

Meanwhile, Inheritance Tax (IHT) continues to quietly creep up, with £800 million collected in April alone. The problem? IHT thresholds have been frozen for years, while house prices and asset values have continued to rise. More estates are being pulled into the IHT net, and many families don’t even realise it’s happening until it’s too late.

So, what can you do?

Whether it’s making the most of your CGT allowance, setting up Trusts, gifting assets, or simply reviewing your Will, small changes now can make a big difference down the line.

Both CGT and IHT are becoming more relevant for more people. It’s the perfect time to check in and make sure your strategy still works for your goals.

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Please check the terms and conditions before opening any account. If in doubt, consult with your Financial Adviser directly, as the above is for your information only.

Source: Moneysavingexpert.com 02/06/2025