How does the Budget impact you?

The budget wasn’t quite as harsh as the press suggested. For weeks, headlines like “Pension tax relief to be abolished” and “Capital gains tax will move to income tax rates” made the rounds. But governments often release alarming “leaks” so that the actual budget feels like a relief by comparison!

Let’s look at the two main areas affecting you.

1. Impact on Your Investments

Capital Gains Tax (CGT) allowances are dropping. From now on, CGT is 18% for basic-rate taxpayers and 24% for higher-rate taxpayers—an increase that could impact gains on General Investment Accounts (GIAs) and shareholdings. No immediate action is needed; we’ll assess whether to shift assets to ISAs, or other tax-efficient options, during your Forward Planning meeting.

2. Impact on What You Leave to Your Family

Here’s what’s changing for Estate Planning:

• Pensions: As of 2027, Pensions will face Inheritance Tax (IHT) at 40%. Details are still in consultation, and we’ll update you once the rules are clear.
• Business Property Relief: Drops from 100% to 50% in 2026.
• IHT Allowance Freeze: The current allowances are frozen until 2030

No immediate action is required on your part. We’ll keep reviewing your plans to make sure your Investments and Legacy align with your goals, and this latest budget, and we will make you aware of any specific changes that are required.
We held our own Budget Briefing session following the Budget Talk last month, where we summarised the changes and what it might mean for your Finances. To get a video recording of the session or if you’d like to discuss what impacts and changes the new Budget has on your Finances, please get in touch with one of the team on 02920 450 143 or email us on info@penguinwealth.com.

Cohabiting Couples: Why a Will matters

A recent survey from Will Aid found that most cohabiting couples aren’t aware of the inheritance risks if one partner dies without a Will. Shockingly, 68% of those surveyed didn’t know what would happen to their estate without a Will, leaving many families across the UK potentially vulnerable.

Here’s the reality: if you’re living with a partner but aren’t married or in a civil partnership, the law doesn’t automatically recognize you as their “Next of Kin.” The Rules of Intestacy prioritize spouses, civil partners, and blood relatives, which means that without a Will, your partner might not inherit anything. In fact, 32% of people surveyed thought their estate would automatically pass to their partner, but, unfortunately, that’s not how the law works.

Without a Will, you risk leaving your partner financially vulnerable, especially if they rely on your income or live in your home. Even if you have children together, or have been together for years, the law won’t treat you as “common law” spouses.

Making a Will is a straightforward step that can offer peace of mind and financial security for both of you. Contact us on 02920 450 143 or email us on info@penguinwealth.com to find out how we can help you take that first step to creating your Will.

Torn Will triggers £800k family dispute

The family of 92-year-old Carry Keats is facing an £800,000 court dispute after she partially tore up her Will shortly before passing. Keats, who owned property and land in Wiltshire, tore up most of her Will on her deathbed, leaving her estate’s future uncertain.

Here’s what’s at stake: if the court decides Keats’s actions legally revoked the Will, she’ll be considered to have died intestate, meaning her entire estate could go to her sister, Josephine Oakley. However, Keats’s five cousins, who were listed as beneficiaries in her original Will, are challenging this in court. They argue that Keats was too weak to finish tearing up the Will, with her solicitor completing the tear at her instruction.

The cousins claim Keats’s intention was to disinherit her sister due to past disputes, while Oakley counters that tearing the Will was a response to the cousins’ suggestion of a care home. Oakley argues that in her final years, she and Keats grew closer, making her Inheritance the most fitting outcome.

At the heart of the case is whether Keats had the mental and physical capacity to revoke her Will under the Wills Act 1837. If she didn’t, the Will could still stand.

The verdict will clarify not only Keats’ intentions but also the importance of careful Estate Planning. For anyone wanting certainty about their Legacy, creating a clear and updated Will can help avoid these types of disputes down the line.