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Will Brexit provoke ‘travel tax’ for UK residents?

The EU Commission said the system of security checks is necessary to prevent terrorists entering the open-borders area, but UK Brexit critics warned it is further evidence of the hidden cost of quitting the Union.  Under the system, countries from outside the EU which do not require a full visa to travel to the bloc, will now pay a five Euro fee and must complete an online form.  The EU’s security commissioner has attempted to justify the charge by saying that it is an anti-terrorism measure.  What is not clear is what effect this will have on ex-pats travelling back and forth to the UK.

MPs have latched on to the potential charge as another hidden cost of Brexit and an example of how Brits could be disadvantaged compared to other EU residents.  Citing the move as a hidden tax and extra paperwork adding to the impact of the poor exchange rate on British travellers.  The proposals were to be discussed last Friday and the Home Secretary is seeking clarity on how Brits can continue to enjoy free and easy travel within the EU.

This appears to be another piece of evidence of the negative effect of leaving the EU for UK people in Spain. The adverse exchange rate prompted by the Brexit vote is still causing hardship amongst ex-pats coupled with the appalling returns on savings. 

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

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How to invest wisely during the Coronavirus meltdown

Mark HollingsworthAt time of writing, global stockmarkets have witnessed some of the largest daily fluctuations since the financial crisis; on the back of continued concerns with the virus and how long it will last and the impact on the global economy.

For new investors this can be extremely worrying times as you will not have been used to such short-term volatility. For seasoned investors who went through the financial crisis of 2008, the technology bubble of 2000 and even black Monday in 1987, the short term pain being witnessed is often seen as a confirmation that although stockmarkets can’t always go up, over the long term, they always have done so.   With this in mind, it is important to remain calm and not change your investment time horizon. If for example you are saving for your retirement ten years from now; then maintain that timescale and don’t panic sell on the back of a matter of weeks of market downturns. The reason for this is that the coronavirus is an unforeseen event as opposed to their being any change to market fundamentals. Parallels can be drawn with the SARS outbreak in 2003. Markets fell over 14% at that time, yet the year ended up 18% higher – a swing of over 30% from bottom to top.

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