Contact

News & Insights

Is it time to update your savings and investments?

If a Bank, especially in Spain is offering more than this please be wary, the product they are offering will most probably be a structured product, though they often looked like a normal savings deal, these are based they were based on stock market performance. They usually offer a variety of these ranging from no risk, through low, medium to high risk. 

With the no risk ones  the return you get will depended on either the FTSE or Euro STOXX  50 hitting a number of targets over a set time — usually five years. They are sold as ‘guaranteed’ bonds, because if the stock market failed to do well, you are always going to get back the original money you put in. But in most cases the return on these has been minimal and you would have been better putting your money in a low risk tax efficient investment product. 

Share Isa´s

Not only are these not tax efficient if you are a Spanish tax resident, with most of the older style share ISA´s if you wanted to invest your Isa savings, you generally had to go directly to the investment management group running the fund.

This meant upfront charges of as much as 5 per cent and annual running fees of 1.75 per cent or more. For the first £1,000 invested, that’s £67.50 taken in one swipe.

If you wanted to have investments in two different funds, you had to have accounts with two different companies. This made it a mammoth task to keep on top of your investments, as they were all in different places. And if your fund stopped performing, it could take months to move to a different provider.

There is around £75 billion lurking in these old-fashioned fund manager Isa accounts, according to industry calculations.

But you don’t need to leave your money languishing in this way. It should be relatively straightforward to move your money out of one of these outdated Isa accounts and into a tax efficient investment.

0
0
1
7
43
Social INK
1
1
49
14.0

Normal
0

false
false
false

EN-US
JA
X-NONE

/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:””;
mso-padding-alt:0cm 5.4pt 0cm 5.4pt;
mso-para-margin-top:0cm;
mso-para-margin-right:0cm;
mso-para-margin-bottom:10.0pt;
mso-para-margin-left:0cm;
line-height:115%;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:Calibri;
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;}

by Christina Brady, Regional Manager Costa Blanca    

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.

Other News

Modelo 720 (Overseas Asset Declaration) It’s that time of year again

Spanish FlagIf you are resident in Spain (if you live here more than 183 days in a calendar year, the Spanish tax authorities and in turn the UK HMRC will class you as Spanish resident) and held assets outside Spain as at 29 December 2017 worth over Euro 50,000, and you haven’t already declared them on a Modelo 720, you need to so by the end of March.

You may ask why should you bother, well unless you want a huge fine and possibly tax audit (they can legally go back to 2012) it is in your best interests to do it.

Some of you may still be under the impression that the reporting of assets is not a legal requirement; if this is the case then sadly I have to tell you, you are mistaken. On 15 February 2017, the European Commission accepted that Spain has the right to require residents to declare overseas assets. While the Commission disagrees with the severity of punishments for late or inaccurate submissions, the requirement to submit the Modelo 720 form is not under challenge. The EU and the UK say it is a legal requirement.

Read More

Priming a young generation of savers to invest

A quarter of UK adults have less than £100 put away and one in six adults have no savings, according to the Money & Pensions Service (MaPS). If adults fail to routinely tuck away funds for a rainy day or have little in the way of investment funds, youngsters with an appetite for investing will need […]

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information: