Lowes Magazine 122

INSIDE TRACK

Sharp increase in scams LATEST FCA FIGURES SHOW A RISE IN THE NUMBER of scams over the past year, particularly those around cryptocurrency, posing a significant risk to investors. The FCA’s Supervision Hub reported a 14% increase in cases on the previous six months, while reports to the ScamSmart website jumped by 49%. In addition, the FCA said it had opened over 300 cases relating to potential unregistered cryptoasset businesses during this period, many of which are likely to be involved in scams. Uncertainty in the markets and investors’ concerns about returns create a scammers playground. Scammers are very adept in their ‘sales’ techniques. Please be wary of any cold calls and adverts on social media – a Government’s Online Safety Bill is addressing the latter, but personal vigilance is still the best defence against criminals. Also, the Financial Services Compensation Scheme has produced a useful podcast which talks about how to avoid scams and the hazards of high-risk investments. The link to the podcast is: https://www.fscs.org.uk/news/podcasts/ episode4/ And please remember, as FCA authorised, Independent Financial Advisers, Lowes is here to help you invest through all market conditions and avoid any potential traps. Putting wealth to work BANK OF ENGLAND DATA SHOW 28% of households boosted their savings due to restrictions imposed during the COVID-19 pandemic. Analysis from behavioural finance experts Oxford Risk, shows individual households are holding nearly £21,000 of savings in addition to regular savings. But savers are losing returns because they are holding the money in cash accounts, often paying paltry rates of interest. Worst still, rising inflation is eating away at the buying power of their savings. Often, this is because they are uncomfortable with the associated risks of investing over saving. As Lowes clients will know, there are clear ways to help mitigate investment risk, including a long-term view of wealth accumulation. If you know anyone who has accumulated additional savings who would benefit from Lowes’ Independent Financial Advice, please put them in touch on 0191 281 8811

Lowes TAX tables booklet ENCLOSED WITH THIS ISSUE OF the magazine is our yearly tax table booklet, covering the tax year 2022-2023.

You can order further copies for family, friends and colleagues by calling 0191 281 8811 or email Contact@Lowes.co.uk

Property ladder help PROPERTY PRICES HAVE continued to rise over the past two years, despite the impact of the pandemic, making it even harder for the younger generation to put their foot on the first rung of the property ladder. This is making younger people increasingly reliant on inheritance or cash from parents and grandparents to make the move from parental home or renting to their first home.

For younger people who are relying on inherited wealth to buy a property, inheritance tax (IHT) is an issue. Despite the £325,000 nil rate band IHT allowance (which hasn’t changed for thirteen years and is frozen until 2026) and the additional £175,000 residential nil rate band allowance which enables the value of a home to be passed on to a ‘direct descendent’, an increasing number of families are recognising the rising threat of inheritance tax. Strategies for passing wealth down the generations, while not paying an unnecessary tax bill, include pensions, which can be passed on free from inheritance tax, and other gifting strategies.

If this is an issue for your family and you need advice, please call 0191 281 8811 for a consultation.

2 LOWES Issue 122 · Published April 2022 The content of the articles featured in this publication is for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts. Levels and bases of, and reliefs from, taxation are subject to change and their value can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future results.

Covershot: Scenery of Amalfi coast town at Tyrrhenian sea in autumn. Photo: Shutterstock