Recent enquiries have highlighted private school fees, a potential tax raid on entrepreneurs and the benefits of investment visa schemes as being of particular interest to our users currently.
Private school fee pain is being increasingly felt
School may be far from children’s minds with the holidays in full swing, but that is certainly not so for the parents we have recently been talking to who are alarmed by steeply increasing fees – and now the threat of VAT becoming applicable too if Labour were to come to power. The average day school is already charging around £35,000 a year now, while boarding is edging close to £50,000 as fees have been going up by 3% year on yeari. It is not outlandish at all to estimate that educational fees (not to mention equipment and trips) could cost families with two children £1m or even quite a lot more in total.
It is not outlandish at all to estimate that educational fees (not to mention equipment and trips) could cost families with two children £1m or even quite a lot more in total
That is a figure which represents a heavy financial burden even for the wealthy, and one which is incredibly difficult to put down once it has been taken up. Rightly therefore, our conversations with parents have been very much orientated towards sustainable strategies which will take their worries away.
The wealth managers on our panel have abundant tips to offer on planning and investing for private school fees, including ways you can also seek to save on tax. However, it is important not to take this element of your wealth planning in isolation but rather as part of a holistic plan devised with someone who can see the totality of your financial needs.
Interest piqued in second passports
We recently ran a piece from Henley Partners exploring how the UK’s High Net Worth individuals are increasingly interested in investment immigration. It might be the summer sun or (what is more likely) worries about what a Labour government could do to the wealthy, but a number of our users have said their interest was well and truly piqued by this.
As many will be aware, citizenship and residence by investment schemes have really proliferated all around the world in recent years as governments have moved to boost their economies and attract talent. What is often not so well appreciated is that this is no longer the preserve of the ultra-wealthy: for instance, €280,000 of real estate investment can secure the right to live, work, and study without restriction in Portugal.
As many will be aware, citizenship and residence by investment schemes have really proliferated all around the world in recent years as governments have moved to boost their economies and attract talent
People seek alternative citizenship and residence options for all manner of reasons, but while lifestyle and opportunity do figure highly it is invariably tax mitigation which seals the deal. There are, however, huge implications for tax and your wealth management strategy generally which have to be considered very carefully indeed – and well in advance.
If obtaining citizenship or residence in another country is on your radar, even for many years hence, we would urge you to speak to the professionals at the earliest opportunity. As with all things financial, the earlier you start to plan the better and you may be surprised by how helpful your wealth manager can be. One of the experts on our panel recently penned a piece for our users on the tax traps around foreign-owned property, for instance.
It’s always great when our content gets users thinking, and that was very much the case with our recent piece on investment for citizenship/residence programmes. Readers were surprised by how modest the amounts required may be and I think it’s fair to say that many will be thinking carefully about their options.
Combining life in the UK with part of the year in sunnier climes has great appeal, but domiciliation and international taxation are areas where you will certainly need to take professional advice – not to mention property issues too. There may be significant tax savings to be had, but inevitably multiple complexities alongside. Take our short wealth manager matching questionnaire and we can help you to find the best institutions to help you find the optimal path, fast and free.
Entrepreneurs are increasingly eyeing the exits
We wrote recently about how the hit show Succession had brought business and inheritance to the fore of many of our users’ minds. Now, we also need to highlight the very noticeable increase in business owners looking for the exits and to move on from entrepreneurial life completely.
The triggers for a business sale are as unique as the owners themselves, but it has become very apparent in recent weeks that the UK’s entrepreneurs fear a tax raid should the next government be a Labour one and are taking this as their cue to cash out ahead of easily foreseeable changes such as further hikes to Capital Gains Tax. In fact, we could be looking at a real exodus of entrepreneurs. Evelyn Partners, one of the wealth managers on our panel, recently found, two-thirds of UK with a turnover of at least £5m are preparing plans to exit their firm and that a quarter of those had moved up plans to do so this year.
Evelyn Partners, one of the wealth managers on our panel, recently found, two-thirds of UK with a turnover of at least £5m are preparing plans to exit their firm and that a quarter of those had moved up plans to do so this year
There are myriad points in life where getting holistic wealth management will serve you very well, but the sale of a business is foremost among them; the stakes are high and the timeframes for action are often shorter than we would hope. Don’t delay if a business sale is on the horizon. We can help you to obtain the unique mixture of business, investment, tax and legal advice you’ll need fast and free.
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Increased mention of private school fees, business exits and immigration in recent week might have struck us, but this should not create the impression that the current geopolitical and investment environment isn’t also a top talking point with our users. Indeed, this forms the background to everyone’s thinking it seems.
While there is usually a market lull over the summer, this year we’re seeing a remarkable strength in inbound enquiries as people seek to start the ‘back to school’ season in better financial shape – starting with health checking their portfolios and remedying any weaknesses that might scupper their plans.
Meeting your best-matched wealth managers is fast and free through our unbiased matching service. Alternatively, speak to our expert team about what you could achieve with professional advice, with no obligation at all.
The investment strategy and financial planning explanations of this piece are for informational purposes only, may represent only one view, and are not intended in any way as financial or investment advice. Any comment on specific securities should not be interpreted as investment research or advice, solicitation or recommendations to buy or sell a particular security.
We always advise consultation with a professional before making any investment and financial planning decisions.
Always remember that investing involves risk and the value of investments may fall as well as rise. Past performance should not be seen as a guarantee of future returns.