The Bank of England (BoE) recently took the significant decision to lower UK interest rates on 31 July 2024. The Monetary Policy Committee (MPC) chose – narrowly, by 5 votes to 4 – to lower the base rate from 5.25% to 5%. Naturally, this has important implications for savers and borrowers. Traditional wisdom states that the former suffer when interest rates decline, whilst the latter (e.g. those with mortgages) benefit.
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How a Labour government could affect expats
The arrival of the Labour Party to UK government on 5 Jul 2024 marks an important moment for the economy – and, by extension, British households (both at home and abroad). A new legislative agenda could bring new rules and policies about taxation, spending and borrowing. Below, we discuss how the Labour government could affect British expats.
Care and inheritance: a short guide
In the UK, the cost of care can be staggeringly high. The average cost of residential care stands at average of £1,160 a week. Nursing care is typically more expensive, at £1,410 per week. Homeowners can be especially worried about going to care, fearing that their home may need to be sold to cover the fees.
Financial planning and divorce: an expat guide
Divorce is the second-most stressful event that someone can experience after the death of a spouse (according to the Holmes and Rahe stress scale). However, getting divorced as an expat can be even more challenging. Different citizenships, legal systems and asset locations can further complicate things.
How financial advice helps with wellbeing
A lot has been written about how financial planning can help with wealth building and preservation. However, it can also be valuable from an emotional, relational and psychological perspective – helping to create and sustain lives which (according to the Mental Health Foundation) are “comfortable, healthy or happy.”
Moving to Spain and capital gains tax – be careful
One of the biggest challenges as an expat is navigating taxes. The UK, for instance, will tax income and wealth differently to Spain and other countries. One often overlooked area is capital gains tax (CGT). Below, we explain how CGT works, how expats can inadvertently “trip up” on it when living abroad and how to plan effectively for it.
How should you react to a fall in the stock market?
Many people are interested in investing. Yet, a common fear is losing your money in a market “crash”. What is the best way to prepare for a potential bear market? How should you react if one occurs? Below, our financial advisers at Scottsdale offer some reflections. We hope these insights are useful. If you want to discuss your financial plan with a member of our team, please get in touch to arrange a free, no-obligation financial consultation.
Top finance tips for expats in 2024
Moving to a new country is exciting. The expat life brings many wonderful opportunities for career, travel and family. Yet, it also raises complex questions about your finances. Will the cost of living be different and how will you adjust your budget? How does tax work? What are your retirement planning options when living abroad?
How does the economy affect your investments?
The economy is a bit like the “ocean” that your investments “float” in. During harsh weather (e.g. a recession), your investments might experience turbulence, leading to short-term price volatility.
Income vs lump sum for financial protection
How can you provide an effective safety net for your finances? A good starting point is to hold a strong set of emergency savings (e.g. 3-6 months’ worth of living costs) in an easy-access account. However, this will only take you so far in the event of a serious illness or accident which stops you from working.