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When Trump Tweets, the world trades!

When trump tweets, the world trades!

The social-networking platform Twitter has revolutionised the way in which individuals interact with one another. Through the distribution of content via a 280-character micro-blog (known as a “tweet”), users can report news items, advertise their wares or simply poke fun at the controversial issue of the day. In the United States, Twitter has exploded in popularity among political figures. It has become a necessary part of public life, with the sitting president and nearly every member of Congress actively participating. Many attribute its ascent within the political arena to be a product of former President Barack Obama’s groundbreaking use during his administration.

Every time current US president, Donald Trump, tweets, it has an impact on the international market. An untimely tweet or offhand comment may have a large impact upon intraday volatilities facing futures, equities or Forex markets. As a general rule, financial markets are not receptive to surprises and uncertainty – however, Twitter has the ability to supply both, periodically spiking short-term volatilities facing a wide variety of openly traded financial instruments.

Trump’s impact on the market was on full display earlier this year when even powerhouse, Amazon’s shares went down by 5.1% at one point in time. It is because of the jaw-dropping speed at which certain stock moves in response to Trump’s tweets that some sophisticated traders are using an algorithm that instantly captures Trump’s Twitter remarks and then immediately buy or sell the affected stocks. Others have opted to ride it out as the trend seems to be that the market value amost always recovers – often within the trading day.

So the moral of this story is…Beware presidents bearing tweets

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Pension Planning – What are your options?

Pension Planning - What are your options?

Pension Planning

Pension planning is one of the most important, but forgotten, areas of estate planning.

When someone thinks about planning for the future to ensure their assets pass to their loved ones, the first thing they consider is ensuring they have a Will in place which is up-to-date and meets their wishes.

However, pensions fall outside of your estate and therefore do not pass via your Will meaning this planning doesn’t provide any structure of your intent for who should receive your pension.

Often, people’s pensions make up a large part of their total estate, but they are left with no nomination form or trust planning, so the pension provider makes the decision at the time of death as to how it is paid out.

Do you really want them to make those important decisions for you? They may not know about your close relationship with your godchild, or the sibling that you don’t get on with and wouldn’t want to receive it.

Even if you do have a nomination form in place, from the moment your spouse, child or other loved one takes a lump sum, that full value sits inside their name at risk of the following threats

If your spouse takes a lump sum

Marriage After Death (MAD):

This risk can affect the family in many ways. For example, say you passed away your spouse was to re-marry soon after when grieving and then realise it wasn’t what they wanted. On divorce, half of the funds could be lost. Alternatively, it may be a situation where the survivor meets someone else some time later and remarries. There would still be the risk that upon second death, their estate would pass to the partner (as the funds are now in their estate, and marriage revokes previous Wills). On the new partner’s own death, it’s likely they would leave it to their own children and it may never reach your children.

Care Home Fees:

If your spouse took funds into their name, and then needed to go into care, the funds would be taken into consideration and assessed for care fees.

Inheritance Tax:

Although the funds are Inheritance Tax free on your own death, if your spouse took funds into their name, they could end up paying Inheritance Tax on the funds when they die.

If your children take a lump sum


If either of your children were to get a divorce further down the line, half or more of the funds you left them could be lost to the ex-partner.


We all hope our chosen beneficiaries will do the right things and are ready to receive funds but when there are large sums involved however, you may wish to stagger the age at which funds become available, rather than the full amount being available to them at 18.

Bankruptcy or Creditors:

Again, assets taken could be lost if your beneficiaries ever got into financial difficulties. Again not always a common thing but in a world where beneficiaries may run their own business etc. it’s a risk that can simply be protected by the use of the Trusts we will recommend.

Inheritance Tax:

Although the funds are Inheritance Tax free on your own death, again if your children took funds into their name, they could end up paying Inheritance Tax on the funds when they die.

Pension Planning is a very complicated area but certainly something that you need to ensure you have thought about.

Please contact us on 01344 851 250 or if you would like to discuss this further, or click the button below.


4 Things Football Coaches and
Financial Advisers have in common​

4 Things Football Coaches and
Financial Advisers have in common

4 Things football coaches and financial advisers have in common

With the 2018 FIFA World Cup semi-finals underway, the coaches of the world’s greatest teams are on tenterhooks, eager to see whether the many hours of intense preparation will propel their teams to victory. And there’s a lot in common between a football coach and a financial adviser.

1. Strengths and weaknesses:

The value of a good football coach is similar to that of a good financial adviser. It’s about their understanding of strengths and weaknesses, and their ability to put a strategic plan in place that will deliver winning goals.

2. Insight:

The right sports coach gives you insight into both your growth potential and your limitations, and will also help you identify and take advantage of all the opportunities ahead. Similarly, the right financial adviser looks at the reality of your finances, including the risks and barriers to reaching your goals, and helps you gear your money toward wealth creation and peace of mind.

3. Valuable Advice:

The same way that a coach would not send you into a game unprepared, a good financial adviser would not encourage an expensive holiday when you are struggling to manage debt repayments.

4. Honesty:

Honesty is key in these relationships. When a coach asks players to disclose injuries, it is to prevent further harm. It’s also why financial advisers need to have the full picture of your financial status and goals – expenses, debt, income and financial aspirations.

Good coaches also understand that ‘practice makes perfect’.  In life, the better you know your own money habits and the more committed you are to achieving your financial goals, the more prepared you will be for any financial season – come World Cup tournament or friendly match.

At Ascot Wealth Management our coaches/advisers are in for the long haul and we are wanting to form long term relationships with our clients rather than just for one season. 


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Tax and Furnished Holiday Lets

Tax and Furnished Holiday Lets

With British Summer in full swing, many of us are thinking of our next holiday destination. Statistics show that 1 in 10 of us have a holiday home, often used for rental and family use. From the visitor’s perspective, a holiday home offers you familiarity, comfort and ease; but the owner is likely benefiting from the largely unknown tax benefits associated with Furnished Holiday Lettings (FHLs).

If you own a holiday home in the UK or European Economic Area that is furnished and commercially let, there may be tax advantages you’re not aware of.

Furnished Holiday Lets Advantages

  • The cost of furnishings can be offset against your pre-tax profit, potentially increasing your rentability (this isn’t an option for long-term rentals).
  • Any income generated via lettings is relevant earnings for the sake of pension contributions, meaning you could be saving more into a registered UK      pension up to the annual income earned from your letting.
  • Profits can be distributed across all owners in the way you desire, as opposed to having to meet a 50:50 split on Land Registry basis for long term lets.
  • Selling the property opens up the opportunity of entrepreneur’s relief, roll-over relief and hold-over relief, all of which save you Capital Gains Tax.
  • Small Business Relief means you can save council tax

In showing the benefits of FHLs, it is important to note the downsides. Importantly losses cannot be offset against other taxable income. It’s not all bad news, and rather losses are just carried against future profits for the next four years. Secondly VAT may apply depending on the level of income.



So, does your property qualify?


If you answer yes to all of the below, you could be saving thousands in Tax


  • The property is furnished
  • Intention for profit
  • The property is available for 30 weeks of the year
  • Let commercially for 15 of those 30 weeks

Get in touch to find out how FHL regulation could benefit you.

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All you need to know about ISAs

All you need to know about ISAs

What is an ISA?

An ISA (Individual Savings Account) is a tax-free way to save or invest. If you’re starting to think about saving or investing, ISAs could be a good place to start. On other savings accounts, you may have to pay income tax on the interest you earn. The interest on a cash ISA is free from tax, so all the interest you earn, you keep. In fact, these investments are often referred to as a ‘tax-free wrapper’. The
benefits can be used on a range of investment types, as shown below in the variety options you have access to.

Advantage of ISA

Tax advantages fall into two categories: capital gains tax and income tax benefits.

ISA Income Tax Benefits
In most situations, any income you earn, through wages, interest or dividends, is subject to income tax. However, that is not the case with ISAs. All of the money you earn on these savings vehicles is completely tax-free. Income tax benefits are just part of the equation when you are considering an ISA, however. The other advantage to these accounts is the capital gains tax benefits you can enjoy.
ISA Capital Gains Tax Benefits
Capital gains tax benefits specifically apply to Stocks and Shares ISAs. Most investment products are subject to a capital gains tax if the amount of earnings from your shares in a single year exceeds the set limit. This tax rule is waived for investments in ISAs, making them definitely worthwhile for those who plan to sell or make a a large gain.

Know your options

ISAs have evolved into five different shapes, Cash ISAs, Stocks & Shares ISAs, Innovative Finance ISAs, Lifetime ISAs and Junior ISAs. Clients should consider what their savings goals are before choosing their preferred self-investment vehicle, or by seeking financial advice.

Key facts:

  • The ISA allowance is £20,000 per annum for the 2018/19 tax year.
  • HMRC states you cannot contributue into two of the same ISA type in the same tax year.
  • All income and growth within your ISA is completely tax-free.
  • ISAs are taxable for inheritance tax unless they invest in qualifying investments for inheritance tax relief.


Cash ISAs

  • Lets you manage your money like a typical savings account.
  • They could offer instant access or pay a fixed rate of interest over a few years if you don’t think you’ll need access to your savings.
  • Designed as low risk, no chance of loss products operating at a defined interest rate.
  • Interest rates align with the Bank of England base rate, so at present, offer very low interest.
  • Some ISAs allow you to lock in for a fixed term, thus increasing the interest payments.
  • Speak to us for the best rates. 

 Stocks & Shares ISAs

  • Your money is invested in the stock market.
  • They’re designed for people who are happy to invest over a long period of time and are looking for potentially higher returns. You need to accept risks that come with investing in the stock market.
  • The funds AWM would look to invest you in are low cost managed solutions to reduce fees where possible.

Innovative Finance ISA

  • Designed for sophisticated Peer to Peer lending.
  • This vehicle has been available since 6th April 2016, allowing investors tax-free gains on the capital invested.
  • The IFISA is designed for higher risk clients, as their capital is exposed to default risk or missed payments, as opposed to equity or fund based risk.
  • Due to the new nature of IFISA, we strongly suggest contacting us for more information.

Lifetime ISA

  • For those saving for a property, the Lifetime ISA (LISA) provides government bonuses for savers to get on the ladder.
  • Rather than being capped at £20,000, the LISA is capped at £4,000, however, this forms part of your £20,000 overall allowance.
  • For those who have already bought their first property, the LISA can be used as an additional retirement vehicle, but cannot be withdrawn until 60 years of age without penalties applying.
  • The LISA has an exit penalty if you’re withdrawing for any reason other than a first time purchase or before 60 years old. The only break of this rule is if one is terminally ill.
  • For each time you contribue into your LISA, the government will add 25%of your contribution.
  • A LISA can only be opened up to the age of 40 years old and if you contribute after you are 50 years old you will not receive the government bonus.
  • The LISA can be invested in either cash or stocks and shares.

Junior ISA

  • Act as long-term, tax-free savings accounts for children.
  • Your child must be under 18 and live in the UK.
  • If the child lives outside the UK, you must either be a Crown servant or the child depends on you for care.
  • You can’t have a Junior ISA as well as a Child Trust Fund.
  • The savings limit for Junior ISA for the 2018/2019 tax year is £4,260
  • You can invest into cash or stocks and shares.
  • Control of the account will be transferred to the child when they reach 16, but they can’t withdraw the money until they turn 18.