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UK inflation rate falls – Good news?

How can that be?  Well this is the time of year that the figure is used to set the annual increases for some pensioners and disability benefits, as well as public service pensions and the state second pension.

Inflation as measured by the Consumer Prices Index fell to -0.1% in September, this was due to a smaller than usual rise in clothing prices, and falling motor fuel prices. The CPI rate has been at or close to zero for most of this year. It was last in negative territory in April.

Most benefits will be frozen from April because of the latest data.

The law does not allow for a down rating of benefits, so the practical effect is that benefits are likely to be frozen from April. The exact change, or lack of it, will be approved by the government in the coming weeks.

What this means for you is that pensioners here and in the UK could soon be facing a squeeze on living standards

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

Spotlight on … Rebecca Tanke – Personal Assistant to Paul Rhodes

Rebecca TankeHow / why did you get into your line of work in the financial services sector?

Working as a personal assistant is right up my street. I can streamline and tidy everything up and I get to organise and arrange things. My role evolves constantly. With all the challenges Brexit has brought us, alongside many other changes to the industry, it never gets boring. The financial services sector seemed like a challenge and I was willing to take it on.

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Safeguarding your Pension and Assets

Many UK expatriates do not realise that even if they have left and are no longer resident in the UK, they remain UK-domiciled and therefore subject to UK Inheritance Tax (IHT) on their worldwide estate at a rate of 40 per cent after allowances. This can come as a major shock. 

Brexit

What can be done about this? There are several options. 

Transfers of wealth on death between husband and wife are exempt from IHT, but only if the spouse is also domiciled in the UK (or both are non-domiciled). This catches out many expatriates who have married a foreign passport holder who is likely to be domiciled elsewhere. Even then, the IHT is only delayed rather than avoided, because on the death of the survivor the tax will be payable on the passing of the family assets to the next generation. 

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