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.
Category: Financial Planning
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.”
Election 2024: Possible tax changes ahead?
With the 2024 general election campaign in full swing, many expats are asking how the outcome of the poll (scheduled on 4 July) might affect them. In particular, are tax changes on the horizon? What could a change in government potentially mean for Brits living abroad?
“Is life insurance taxable?” and other FAQs answered.
Life insurance and tax. How do they relate to each other, and how does this affect your finances? In today’s uncertain world, it is vital to have a financial safety net in place, ready to protect you and your loved ones. However, you do not want any unexpected taxes arriving, potentially eroding the lump sum (or replacement income) you hope to receive.
How to make the most of your wealth as an expat
How do you create long-lasting wealth as a British person living overseas? Having assets and/or income in different countries can add extra considerations to wealth management. For instance, you might need to account for the impact of exchange rates – and different countries’ inflation rates – on the “real” value of your assets.
Your financial plan in 2024 – key dates to watch
One of the best ways to put more hard-earned money back into your pocket (via tax-efficient planning) is to be well-prepared for key dates in the financial year. Below, our financial advisers offer a summary of the main milestones for British expats to watch in 2024. We also include some thoughts on how these dates could affect your financial plan.
How to navigate the Spanish wealth tax
In the UK, taxes are primarily imposed on income earned as it comes in. For instance, capital gains tax (CGT) is levied on chargeable gains from investment returns. Income tax is levied on a worker’s salary. The nearest thing we have to a “wealth tax” in the UK is perhaps inheritance tax (IHT), which is typically levied at 40% on the value of an individual’s estate once it exceeds £325,000. However, what are the rules in Spain?
A short financial checklist before moving abroad
As a British national preparing to move to Spain, relocating overseas involves more than just packing your suitcase. It is also essential to get your legal and financial planning “ducks in a row”, especially if you are planning to work or retire in Spain. Below, our Alicant financial planners here at Scottsdale offer a short financial planning checklist to help expats who are hoping to move to Spain.
What should you look for in an expat financial adviser?
Choosing the right financial adviser is a very important decision. Whilst it is a very positive step to work with an experienced professional, the selection process has its risks. You need to find the right adviser for your needs. This is especially true for British expats living in a country like Spain, where there can be added complexities in the financial planning process due to different cultures, tax laws and language barriers.