The battle for Downing Street has begun!

Published:  June 2024

With the dissolution of Parliament last week, the Politicians are fully focused on the campaign trail. It has been a busy week in politics; the leaders of the parties rowing over £2,000 in extra taxes, the announcement of Nigel Farage running for Reform UK and ITV showcasing the first of a series of live debates.

Tuesday evening saw Sir Keir Starmer taking on Rishi Sunak with various polls indicating it was a Sunak win and other media groups stating it was a Starmer win.  It will ultimately be down to the voters on the 4^th July!

But what can we take away from the debate?

For most people, the immediate concern is how much will the election impact our back pockets in taxes going forward.  It is fair to say where Starmer wouldn’t commit to divulging many of their [Labour’s] policies at this stage, Sunak indicated that his [Conservative] focus was to reduce taxes.  Many voters were left asking of both leaders …. where are the details?

One of the changes where Keir Starmer did imply that the Labour Party would stand by their pledge, was putting VAT on Independent School fees if the Labour Party were voted in.

So what can our clients do who are impacted by this?  We can provide cash flow forecasts to determine the affordability of an additional 20% on school fees onto your wealth and long-term plans.

We are also aware that many Independent Schools are not adverse to receiving a lump sum of school fees paid up front now to mitigate the tax rise.  Depending on whether you are in a position to do this will need to be carefully considered and it is something we would advise seeking financial advice on before making that decision.

It is key that timing is everything and now with a General Election just around the corner, it is an optimum time to review your financial affairs.

If you would like to talk to one of our Chartered Financial Planners, please contact us on 01223 233331 or email info@mmwealth.co.uk.

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Disclaimer

Opinions constitute our judgment as of this date and are subject to change without warning.  The value of investments and the income from them can go down as well as up, and you may not recover the amount of your original investment.

The information in this article is not intended as an offer or solicitation to buy or sell securities or any other investment, nor does it constitute a personal recommendation.

The Financial Conduct Authority does not regulate  estate planning and tax planning.

The information contained within this blog is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing.  Levels, bases and reliefs from taxation may be subject to change.