The last time I wrote an update note, Trump’s tariff policy had just landed, and portfolios had fallen quite abruptly on the assumption he meant it – odd given his track record! 

Markets have now decided the impact of his protestations will be much more limited and we find ourselves at near all-time highs in the values of many portfolios. This makes it a good time to consider any unplanned capital needs and how best to provide for them.

However, whilst the numbers look good the wider world doesn’t exactly feel like it’s thriving or indeed stable, with some appalling ongoing conflicts and crises continuing to take a great and tragic human toll. 

Here in the UK, the Government is reaching a tax and revenue decision point. High government bond yields – worse even than Liz and Kwasi managed to engineer after their doomed budget – signal the bond market believes increased borrowing to fund spending is not going to be possible. With attempts to cut back spending largely reversed, further tax rises and having to break an election promise or two are needed in order to meaningfully improve the UK’s finances and stimulate growth. Governments around the world face similar issues. Inflation is proving to be more stubbornly persistent than many had envisaged. 

This all means a continuance of what we have been advocating for some time – get the structuring right, use all your tax allowances, don’t be afraid to start moving money down the generations if you are in a position to do so, and accept that you will need to pay some tax on gains as you go along. We are spending more and more time exploring ways to protect and pass on wealth down the generations or encouraging clients to enjoy what they have worked so hard to accumulate, avoiding punitive taxes at a later date. As ever, we look forward to working with you to ensure your financial plans remain firmly on track.