Which Election will affect your financial planning?

We are just over a week away from the day that we cast our votes and make the decision as to which party or parties are going to lead our nation into the future. Sadly, apathy to the choices available due to expenses scandals may be the overall winner.

Not since the 1970’s has the race been so close and the prospect of a hung parliament seems to be an ever more real prospect. As is currently being muted, and based on the polls, the prospect of a coalition government is realistic and it appears that other than Germany, many of this partnerships do not last long, requiring a further general election soon after. Just Google 1974 and politics and you will see what I mean.

Whoever sits in Number 10 (and Number 11), the reality is that the UK has some significant financial issues to face and this will require a firm hand to steer us through what is likely to be a tricky few years. All political parties are clear on this, it’s just the way they wish to dress the issues that change. This is likely to mean that the ‘tax take’ required from individuals will rise, as it will for business. And this will have an effect on personal financial planning as it will for business planning, with the real possibility of changing income, capital gains and IHT tax rates, allowances and reliefs, such as pensions, being changed.

This is likely to make 2010 a year of change with proposed emergency budgets and changes in legislation which is likely to make financial planning ever more crucial over the coming year and years. Reviewing your finances and financial planning regularly during the year will be important in ensuring that any new requirements for increased taxation are planned for accordingly.

Finally, is it me, or have the Chancellor and prospective Tory Chancellor been moved out of the limelight with only Vince Cable making regular public appearances? We don’t see or hear them much.

Be ready for your planning in 2010 and for financial planning advice, contact Churchouse Financial Planning Limited on 01483 578800 or at info@churchouse.com.

Churchouse Financial Planning is authorised and regulated by the Financial Services Authority