Economic Update Spring 2010

Now the election race is over and the new coalition is in place, it is clear looking back over the manifestos from all political parties that the UK economy is in need of a firm hand to guide it through the next years by reducing the national debt, whilst maintaining reasonable services. This is likely to mean higher taxation for most, cost cutting, and other change that I am sure will be announced in the new budget now set for 22 June. As we have also now entered a new financial year (2010/2011), now may be a timely reminder of some of the examples of the new tax allowances available to you and an opportunity to take advantage of these. This may include ISAs (now £10,200 for all eligible), the annual capital gains tax allowance (remaining at £10,100 thus far) and the gift allowance of £3,000 per person for inheritance tax purposes, to name a few.

Personal and business financial planning has always been affected by the political landscape that surrounds it and I am sure that we will begin to see the outline of change being introduced over the next few months, falling in line with the anticipated measures to vigorously control the economy. This may mean that areas such as pensions tax relief, inheritance tax thresholds, capital gains tax charge rates could be affected by the new administration.

It is clear that as we enter this new era, taking stock of your current financial position and reviewing where and if changes need to be made to your financial planning is going to be ever more important. The planning opportunities will change and change usually brings the need to review to secure any new opportunity. The team at Churchouse Financial Planning looks forward to continuing to help you with these changes over the course of the next years.

This newsletter is not intended as personalised investment advice. You should contact us for advice on your personal circumstances and if you would like to review your pension, investment or overall financial planning over the forthcoming summer, then please let me know and we can arrange a suitable time to meet and look at your individual circumstances, aspirations and requirements.

We look forward to speaking to you.

Keith Churchouse, Director of Churchouse Financial Planning Limited in Guildford, Surrey

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