According to the Organisation for Economic Co-operation and Development (OECD), a global recession could occur if the conflict in Iran continued into 2027. The organisation warned that delays in agreeing a peace deal would affect global growth and cause energy shortages.
Indeed, the OECD said in a scenario where the conflict continues into 2027, global GDP could fall to 2.1% in 2026, compared to 3.4% in 2025.
Remember, the value of investments can fall as well as rise, and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
On 3 June, European markets opened in the red. US President Donald Trump threatened tariffs of between 10% and 12.5% on 60 countries, including the UK, the EU, and Australia, over allegations of forced labour. However, having seen similar tactics before, markets reacted more subtly than they have in the past.
The UK index, the FTSE 100, was up 0.13% when markets opened on 4 June, thanks to news of a ceasefire in the Middle East. However, this was short-lived as technology valuations slipped, leading to the index falling 0.46%.
The fall continued into the following day, with South Korea’s main index, the KOSPI, dropping 5%.
Renewed conflict in the Middle East hit markets on 8 June. The KOSPI fell more than 9%, triggering a circuit break, which halted trading for 20 minutes. Similarly, Japan’s Nikkei 225 (-3.8%), the US S&P 500 (-2.64%), and markets across Europe fell as AI and technology valuations dipped.
Markets did bounce back on 9 June, including the KOSPI rising 8.4%, which could suggest the drop was a blip rather than an AI market crash.
Despite hopes of a ceasefire earlier in the month, the US and Iran exchanged fire on 10 June. This led to volatility in Asian markets and European markets remaining flat as they opened.
On 12 June, SpaceX raised $75 billion (£56.8 billion) in the world’s biggest initial public offering (IPO), which valued the company at $1.77 trillion (£1.34 trillion).
News of a potential US-Iran peace deal on 15 June led to a global rally, with many markets opening in the green, including the Nikkei (5%), FTSE 100 (1%), and the S&P 500 (1.5%).
The following day, the Nikkei broke through the 70,000 point mark to reach a record high.
The technology sell-off reemerged on 23 June. Again, the KOSPI experienced a sharp fall of 10%, and trading was temporarily halted. European and US shares also fell, including the US technology-focused index, the Nasdaq, dipping 1% as SpaceX shares tumbled 16.4%.
Once again, the sell-off was short-lived, with several indices, including the Dow Jones and Stoxx 600, hitting record highs on 25 June.
On 22 June, UK Prime Minister Keir Starmer announced his resignation. While markets reacted to the news relatively calmly, uncertainty over the coming weeks could lead to volatility.
According to the Office for National Statistics, inflation stayed at the same rate as the previous month at 2.8% in the 12 months to May 2026. Economists had expected a rise to 3%. This information is likely to have played a role in the Bank of England opting to hold interest rates where they are.
S&P Global’s Purchasing Managers’ Index (PMI) series measures the health of businesses, and the results for May were a mixed bag.
Despite facing substantial pressure as prices rise, UK factories recorded a reading of 53.9 (a reading above 50 indicates growth) and reached a four-year high.
On the other hand, the service sector, which accounts for around 80% of the UK economy, fell into contraction territory with a reading of 49.3.
Eurozone inflation increased from 3% to 3.2% in the 12 months to May 2026, according to Eurostat. The news prompted the European Central Bank to lift interest rates.
Further data shows eurozone GDP fell by 0.2% in the first quarter of the year, with Ireland’s GDP falling 12.1%. Two consecutive quarters of decline would place the eurozone in a technical recession, so economists will be looking closely at the bloc’s performance in the third quarter.
Economists at the research institute DIW warned that the German economy, the largest in Europe, was at risk of a recession due to a possible energy shock caused by conflict.
Despite this negative news, S&P Global’s PMI shows factory output increased to a four-year high in May, resulting in a reading of 51.6.
US inflation was in line with expectations at 4.2% in the 12 months to May 2026, but was higher than the 3.8% recorded in April.
In good news, the US economy added more jobs than expected. Economists had predicted 85,000 jobs would be added in May, but the reality far surpassed that at 172,000. The boost was partly attributed to the 2026 FIFA World Cup taking place in the US, leading to a hiring boom of hospitality workers to prepare for the influx of tourists.
US-based company Alphabet, the parent company of Google, said it plans to raise $80 billion (£60.6 billion) in equity to fund its vast AI infrastructure investments. It would mark the largest equity raising ever. The news led to shares falling by around 4%.
Chinese exports jumped 19.4% year-on-year in May, with chip exports more than doubling.
Inflation pressure led to Japan’s central bank hiking interest rates from 0.75% to 1%. While the increase might seem insignificant, it’s the highest rate in Japan since 1995.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Preparing to buy your second home might feel just as daunting as being a first-time buyer. You’ll often be juggling Preparing to buy your second home might feel just as daunting as being a first-time buyer. You’ll often be juggling selling your existing home and searching for a new property at the same time. If you’re ready to move on from your first home, here are three things to keep in mind.
A property chain is a linked sequence of property sales where each transaction depends on the one before and after it. This is due to most people needing to sell their current home in order to buy their next property.
As a first-time buyer, you may have avoided being part of a property chain, or you were the last link in the chain as you weren’t relying on the sale of a property. However, when buying your second home, you’ll often be juggling selling and buying property, which can make the process more stressful.
There’s a chance that the property chain could collapse. For instance, if your buyer pulls out, all of the transactions in the chain might be delayed as you search for another buyer. In some cases, the owners of the property you hoped to purchase might look at other options due to the delay, and you could find yourself back to square one and searching for your next home.
As you’re dependent on other people, there may be factors outside of your control that affect the property chain. However, communicating and providing information to your solicitor as quickly as possible could be useful.
Some families opt to temporarily move into rented accommodation or consider short-term finance to avoid being in a lengthy property chain. You should weigh these options carefully, as they may be more expensive.
When you’re buying your first home, you’ll typically use your savings as a deposit. You could do this when buying your second home, but you might also use the equity you’ve built up in your first home.
Equity refers to the portion of your home that you own outright. When you bought your first home, you may have put down a 10% deposit, so your equity will have been 10%. Making mortgage repayments and the value of your home rising will increase the amount of equity you hold.
So, the value of your property and the amount you eventually sell it for will help determine the options available when buying your second home.
You might not use all the equity you hold as a deposit. You could also use moving home as a way to access some of this wealth, which you could use for property renovations or other expenses. However, keep in mind that typically the larger the deposit you put down, the more competitive the interest you’re likely to be offered when applying for a mortgage.
In many cases, you benefit from tax relief when buying your first home. As you prepare to purchase your second home, it’s important that you consider Stamp Duty and what your potential bill would be.
In England and Northern Ireland, Stamp Duty is a tax you pay when you buy property or land over a certain price. In 2026/27, the thresholds and rates are:
Imagine you’re purchasing your next home for £500,000. The Stamp Duty due would be £15,000 – a significant sum, especially if you’re not expecting it. Calculating a potential Stamp Duty bill could help you avoid unexpected outgoings.
If your new purchase won’t be your main home, you may face an additional Stamp Duty surcharge.
There are similar taxes in Scotland and Wales, which have different thresholds and rates. In Scotland, you may need to pay Land and Buildings Transaction Tax, or Land Transaction Tax in Wales.
If you’ll be taking out a mortgage to purchase your new home, we could help. As mortgage advisers, we could search the market for a mortgage deal that suits your needs.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
As a business owner, your personal and business financial values are often closely linked, but they’re not the same. Focusing only on the valuation of your business when assessing whether you’re on track for personal long-term goals could be risky.
In June, tech entrepreneur Elon Musk made headlines by becoming the first trillionaire when his company SpaceX was listed on the NASDAQ stock exchange. Yet, the BBC reports (24 June 2026) that within two weeks, Musk lost his trillionaire status when technology stocks tumbled.
Musk remains the world’s richest person, but the news highlights the potential risk for business owners who rely on their company when assessing wealth. A successful business doesn’t automatically mean you’re building personal wealth, even though the two are connected.
The value of your business is often based on factors like profitability, cashflow, recurring revenue, and having a capable management team.
In contrast, your personal value incorporates the assets you hold. Your business is likely to be an important part of this, but it isn’t the whole picture. In addition, you might include assets like properties, savings, pensions, and investments.
Accumulating personal wealth that isn’t tied to your business could give you greater security and flexibility.
Relying heavily on your business for your personal wealth and to support long-term goals, such as retirement, could be risky for several reasons, including these three:
1. Business wealth is often illiquid
Wealth held in your business is often illiquid. For example, you might reinvest profits with the aim of increasing your business value further. While this is often a good practice, it could mean your wealth tied up in your business isn’t accessible when you need it.
Imagine you’ve faced some health issues and now plan to retire five years earlier than expected. If you’d planned to use your business to fund retirement, you’ll need to find a buyer, which could take time and might not meet your expectations. As a result, you might be forced to delay retirement even though you’re ready to step back from the business.
In contrast, if you had built up personal wealth that was earmarked for retirement, you might be able to retire or reduce working hours while searching for a buyer of your business.
Remember, your pension is usually invested, and the value of the investments may fall as well as rise.
2. The value of your business could fall
The value of your business can fluctuate, and some of the factors that influence it are outside of your control. If your long-term plans rely on your business’s value, it could harm your ability to achieve them.
As the news about Musk shows, concentrating your wealth in one area has the potential to be risky. Instead, diversifying your wealth could mean you have other assets to fall back on if one loses value.
3. You could miss out on other opportunities to grow your wealth
Focusing on your business as an owner is natural, but it could mean you overlook opportunities to increase your personal wealth.
If your retirement plan consists of selling your business and using the profits to create an income, you might not consider setting up a pension, even if it could be the right option for you. By separating your business and personal values, you may explore other ways to improve your financial position.
As a business owner, managing your finances might be more complex. We could help you create a tailored financial plan that considers your circumstances. Please contact us to talk about your personal goals and how to support them.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
The workplace pension employers provide is a valuable employee benefit. Yet, research suggests many workers lack confidence when dealing with their pension. This can provide an opportunity for business owners to offer support and boost staff morale.
According to Employee Benefits (15 June 2026), 39% of employees lack confidence when making pension decisions. In addition, 42% said they would be more engaged with their pension if they had a better understanding of it, and 36% would like greater guidance when making decisions.
As an employer, you have a legal responsibility to enrol eligible staff into a workplace pension scheme and make minimum pension contributions on their behalf. While your obligations don’t extend to educating your employees about their pension, there could be benefits to doing so.
One thing to keep in mind when considering your own pension or discussing pensions with your employees is that they are usually invested. Investment returns cannot be guaranteed, and the value of investments may fall as well as rise. A pension is a long-term investment not normally accessible until 55 (57 from April 2028).
There are several reasons why educating your employees about their pension could be beneficial to your business.
First, some employees may not understand that you’re contributing to their pension as well. Helping employees fully understand the benefits they receive beyond their salary could be valuable. This is particularly true if you’ve decided to contribute more than the minimum pension contributions.
Employees being aware of how you’re supporting their retirement goals could improve morale and retention.
In addition, a lack of confidence around pensions and retirement could lead to financial stress, which could harm productivity.
Indeed, a survey from People Management (27 November 2025) found that 92% of workers have experienced financial stress in the last year, and 89% report that it has a direct impact on their work. So, employers could benefit from providing financial education to their workforce.
1. Make pensions part of onboarding and your employee handbook
A simple step is to make sure pensions are a key part of your onboarding process. When you’re discussing their contract with new hires, don’t forget to include the pension as part of the remuneration package.
To keep it in the minds of employees, be sure to include pensions in your handbook, such as stating what provider you use and who they can approach if they have questions. Don’t forget to highlight the value of the contribution you make to employee pensions.
2. Make pensions a regular topic of conversation
Finances can seem complicated and scary to some people. As a result, ongoing communication about pensions could be valuable for employees.
Whether you share information in monthly updates or host workshops or seminars, there are plenty of topics that your employees could benefit from learning more about. For example, you might cover investment risk and the role it plays in choosing a pension fund, or how to understand what income a pension will provide.
3. Be clear when discussing pensions
One of the reasons why some employees might be reluctant to engage with their pension is that it often involves jargon. Be sure to avoid industry terms or provide clear explanations if you’re using phrases like “Annual Allowance”, “tax relief”, or “defined contribution pension”.
4. Work with an outside provider
If you want to support your employees, you don’t need to deliver financial education yourself. Working with an outside provider could help your workers access high-quality insights and advice.
As financial advisers, we may be able to work with you to craft regular or one-off sessions that improve your employees’ knowledge of their pension or other financial areas.
If you want to talk about pensions, please contact us. Whether you want to understand your own pension or provide support to your employees, we can help.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Workplace pensions are regulated by The Pensions Regulator.
On 22 June, Keir Starmer announced he would quit as Labour Party leader. The decision had been anticipated in the media, but the changes still pose some uncertainty over the coming weeks. Read on to find out what it could mean for your finances.
The Labour Party will need to decide on a new leader, which could cause market volatility. Once a new leader is in place, they will have control over fiscal policy that could affect business and personal finances.
While a change in political leadership can feel worrisome when you consider your finances, taking a long-term view is important.
Investment markets may experience volatility in response to uncertainty, which could affect the value of your investments.
Following Starmer’s announcement, markets were relatively stable. According to the Guardian (22 June 2026), markets largely “shrugged off the news” as the resignation was expected. Indeed, a domestically focused index, the FTSE 250, was down just 0.01%.
As the new prime minister is announced and sets out their vision for the UK, markets could experience greater volatility, particularly if there are any surprises.
While this might feel disconcerting, keep in mind that short-term volatility is a part of investing, and markets have historically recovered.
In the last decade, the UK has had seven prime ministers, and while periods of volatility followed some of these leadership changes, the overall market trend has been upwards.
So, rather than reviewing your portfolio’s performance each day, take a look at the bigger picture. Assessing performance over several years could highlight an overall trend rather than short-term responses to periods of change.
While you might be tempted to make changes in response to volatility, sticking to your long-term investment strategy instead of making knee-jerk decisions could be beneficial.
It’s important to note that investment returns cannot be guaranteed. The value of your investments may fall as well as rise, and past performance is not a reliable indicator of future performance.
The new prime minister might also choose to go in a different direction from the previous one. For example, they could change tax rates or allowances, which might affect your personal finances.
While the potential for change could prompt some people to alter their financial plans, this often isn’t the best course of action.
First, with so much speculation, it can be difficult to know what information is accurate before it’s officially announced. Reacting to a news headline that isn’t confirmed could mean making unnecessary changes to your financial plan, which has the potential to harm your ability to reach your goals.
Second, when changes are unveiled, they often aren’t implemented immediately. So, you will typically have an opportunity to fully assess your options rather than needing to make a snap decision.
As your financial planner, we could alert you if anything might affect your long-term financial plan. We could help you assess how changes might affect you and offer guidance on how to mitigate the potential effects if appropriate.
Over the coming weeks, there’s likely to be a lot of speculation about what will happen. Remember, reacting to rumours could lead you to make decisions based on scenarios that don’t materialise or ones that don’t align with your objectives.
If you have any questions about what Starmer’s resignation means for your finances, please get in touch.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
In a bid to pass more wealth to their loved ones, a growing number of families are opening pensions for their children. Whether your child is still in nursery or already working their way up the career ladder, there could be benefits to making pension contributions on their behalf.
According to an article in the Telegraph (13 June 2026), pension providers have noticed an uptick in the number of pensions opened for a child, with one provider registering a jump of 158%.
This trend is partly being driven by changes to Inheritance Tax (IHT) rules. From 6 April 2027, many pensions will be included in the value of your estate when calculating if IHT is due when you pass away. As a result, some people are opting to contribute to a child’s pension rather than their own.
Whether this strategy is appropriate for you will depend on your personal circumstances and goals, and it’s important to carefully assess the potential implications first. You should also keep in mind that investment returns cannot be guaranteed, including when investing through a pension. The value of a pension may fall as well as rise.
You can open a pension for your child from the day they are born. In many cases, you can also contribute to a pension that your adult children have. However, you should note:
1. A pension cannot usually be accessed until the pension holder reaches pension age
Before you contribute money to a pension, be sure that it’s the right option for you and your child. Money held in a pension cannot usually be accessed until the pension holder reaches 55 (rising to 57 in 2028 and potentially rising further in the future).
As a result, you would not be able to withdraw the money if you changed your mind. Similarly, your child would not be able to access the money if they wanted to use it for another purpose, such as buying a home, before reaching pension age.
2. The Annual Allowance might limit how much you can tax-efficiently contribute to a pension
The Annual Allowance is the maximum amount of money that can be paid into a pension each tax year before the pension holder could be subject to charges.
In 2026/27, the Annual Allowance is £60,000 or 100% of the pension holder’s annual earnings (whichever is lower). Non-taxpayers, including children, have an Annual Allowance of £3,600. In addition, the Annual Allowance may be lower for higher earners or those who have accessed their pension.
The Annual Allowance covers all contributions, including those made by the pension holder, employers, and third parties. So, it’s important to track what you’re contributing and speak to your child about other contributions that are made to avoid unwittingly exceeding the Annual Allowance.
Your personal circumstances and that of the pension holder may affect tax treatment, which is subject to change.
1. You could support their future
Contributing to your child’s pension allows you to support their future.
According to the government (19 May 2026), many working-age adults are not saving enough for retirement. It’s estimated that 15 million people are undersaving. Additional regular contributions could make their retirement more financially secure and potentially ease pressure on your child’s finances now.
2. Your additional contribution could grow
Pensions are usually invested with the aim of delivering long-term growth. While investment returns cannot be guaranteed, the initial contribution you make has the potential to grow over the long term.
3. Your contributions will usually benefit from tax relief
Assuming your contributions don’t exceed the Annual Allowance, they will typically benefit from tax relief at your child’s nominal rate of Income Tax. This provides an additional immediate boost to your child’s pension and, as the money will be invested, further potential for long-term growth.
4. Your contributions could be efficient for Inheritance Tax purposes
Gifts you make aren’t always outside of your estate for IHT purposes. Some may be included for up to seven years after they are given.
However, some allowances could provide a tax-efficient way to pass on wealth. For example, the annual exemption allows you to pass on up to £3,000 each tax year, which will be immediately outside of your estate for IHT purposes. In addition, the small gift allowance allows you to pass on up to £250 to as many people as you like (so long as you have not used your annual exemption on them), and you can gift £1,000 to a couple celebrating a wedding or civil partnership, rising to £2,500 for your grandchildren or great-grandchildren and £5,000 for your children.
One of these allowances is regular payments made to another person. The gifts must be made regularly and come out of your regular income without affecting your standard of living. As a result, making monthly contributions to your child’s pension could allow you to make use of this allowance.
It’s a good idea to keep clear records of your gifts as HMRC may look for a regular pattern of gifting if your estate uses this allowance.
Tax and pension rules can be complex, particularly if you want to support a loved one or consider IHT. We could help you create a financial plan that suits you and your family’s needs. Please contact us to arrange a meeting.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
The Financial Conduct Authority does not regulate estate planning, tax planning, or Inheritance Tax planning.
Thinking about life after you finish work usually involves planning for your retirement. This means considering how to enjoy your hard-earned wealth, perhaps by travelling, spending time with friends and family, or treating yourself to something you’ve always dreamt of having, such as a new car or the holiday of a lifetime.
However, there is another aspect of later-life planning to think about sooner rather than later: the possibility of funding care, should you need it.
While it’s impossible to know what life has in store, longer life expectancies and rising expenses mean care costs now form an essential area of financial planning.
This guide explores:
Download your copy here: Your guide to planning for later-life care
If you have any questions about planning for care, please get in touch.
Please note: This guide is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing (May 2026) and is subject to change in the future.
There were highs and dips in the investment markets in May 2026. Discover some of the factors that may have affected your portfolio’s performance.
Remember, short-term market movements are a normal part of investing. When you’re reviewing returns, it’s typically a good idea to look at the bigger picture and assess performance over several years.
However, it’s also important to note that investment returns cannot be guaranteed, and it’s possible for values to fall as well as rise. Past performance is not a reliable indicator of future performance.
On 1 May, US President Donald Trump announced he would lift tariffs on Scotch whisky following a state visit from King Charles. The news led to drinks maker Diageo being among the biggest risers on the FTSE 100 – an index of the largest companies listed on the London Stock Exchange – after shares were up 2% in early trading.
Banking giant HSBC suffered a drop of more than 5% when trading opened on 5 May. It was the biggest faller on the FTSE 100 after the bank reported a drop in profits and a $400 million (£298 million) fraud-related loss in the UK.
Hopes of a peace deal between the US and Iran led to investor optimism on 6 May.
Trump announced there was “great progress” towards an agreement, which buoyed markets, particularly in Asia. South Korea’s leading index, the Kospi, was up 8% and broke through the 7,000-point mark for the first time. Samsung Electronics experienced a jump of 15%, which took the company’s market value above $1 trillion (£0.75 trillion).
More broadly, MSCI’s All-Country World Index was up 0.56% to reach a new record.
For many markets, the positive news continued on 7 May. Japan’s Nikkei index was up more than 5.5% and closed on a new high. Indices in Germany, France, and the US also rose. However, the UK lagged, with the FTSE 100 falling by 0.55%.
Anticipation of higher inflation due to rising oil prices led to the FTSE 100 slipping further on 15 May, with mining and utility stocks particularly affected. The index fell to its lowest level since the end of March 2026.
On 22 May, US stocks opened higher with the S&P 500 index up 0.4% and the technology-focused Nasdaq also up 0.4%. US cosmetics giant Estée Lauder’s shares were up 11% after it ended merger talks with Spanish rival Puig.
Overall, economic data released by the UK’s Office for National Statistics (ONS) was positive.
First, the UK economy beat GDP forecasts in March. The economy grew 0.3% month-on-month to deliver 0.6% growth in the first quarter of the year. News from the construction sector was particularly encouraging. After falling in the second half of 2025, the sector increased by 1.5% in March.
Official data also suggests inflationary pressures are easing. In the 12 months to April, inflation was 2.8% compared to 3.3% a month earlier. The dip is largely due to electricity and gas prices falling.
However, the conflict in Iran is expected to have an impact on business operations.
S&P Global’s Purchasing Managers’ Index (PMI) found that manufacturing businesses’ costs are surging because of the conflict in the Middle East. Indeed, the prices of raw materials, energy, and labour rose at one of the fastest paces since the survey began in 1992, outside of the post-pandemic inflation surge in 2022.
In addition, the forecasting group ITEM Club predicts the UK economy will lose 162,000 jobs in 2026 amid the conflict involving Iran.
One company that has benefited from the conflict is the oil and gas company Shell. The company revealed profits more than doubled quarter-on-quarter in the first three months of the year. Reported profits of $6.9 billion (£5.15 billion) for the first quarter of 2026 have attracted some criticism.
Despite many retail businesses struggling, there was positive news from clothing retailer Next. The firm revealed far stronger sales than expected in the three months to April 2026. Sales were up 4.4% compared to the 1.3% predicted.
In contrast, carmaker Jaguar Land Rover reported a sharp dip in profits. Britain’s largest carmaker only made £14 million in profit before tax in the year to March 2026. That’s a slump of more than 99% when compared to the £2.5 billion reported a year earlier. The company was affected by US trade tariffs and a cyber-attack that disrupted factories for months.
According to the European Central Bank (ECB), both the eurozone and wider European Union posted subdued economic growth of 0.1% in March.
In addition, the ECB data suggests inflation is rising across the economic bloc. In the 12 months to April 2026, inflation was 3% – an increase of 0.4% when compared to a month earlier.
A PMI reading also indicates that the service sector in the eurozone shrank in April for the first time in almost a year. The reading was 47.6, with a number below 50 suggesting contraction. The decline was linked to the effect of the conflict in the Middle East.
The US also experienced higher inflation. According to the Bureau of Labor Statistics, in the 12 months to April, inflation was 3.8% after a month-on-month increase of 0.6%. The data could make it difficult for the US central bank to cut interest rates, despite pressure to do so from Trump.
There was positive news for the economy in the job data. Official figures suggest 115,000 jobs were added to the economy in April, beating forecasts of 62,000.
However, outplacement firm Challenger, Gray & Christmas warned that job cuts were up 38% month-on-month in April, with AI driving layoffs.
China’s National Bureau of Statistics (NBS) reported factory output slowed to 4.1% year-on-year in April. The weakening economic data comes despite a jump in exports, as customers tried to stockpile goods to avoid supply disruptions due to the conflict.
In addition, the NBS reported China’s producer price inflation rose to a 45-month high of 2.8% in April due to higher energy prices. The increase could affect profit margins and may suggest challenges ahead for Chinese producers.
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Have you considered what would happen to your business if you or a key person became ill or passed away? It’s something that many business owners overlook. Yet, the potential consequences of not protecting your business could be huge.
There are practical steps you can take to help ensure your business can continue operating should the worst happen. Here are three options you might want to weigh up.
Key person insurance would pay out a tax-free lump sum or regular income to your business if someone named within the policy is diagnosed with a serious illness or passes away.
This type of insurance is designed to protect a business if certain employees are essential for the success of the company. This could include you, as the business owner, and others. It can be especially useful for small businesses, where there may only be one person who can complete specific tasks and their loss could have major consequences.
The payout from a key person insurance policy can help the business replace lost profits or recruit someone to fill the role if necessary.
If you think key person insurance could be right for your business, consider who contributes to the success of your firm. This could be your leadership team, someone with technical knowledge, or a long-standing employee who is crucial for keeping operations running smoothly.
You should also consider what level of cover your business would need to remain secure and the deferment period of the policy. Take some time to review a policy you’re considering to understand how comprehensive it is and whether it provides adequate protection.
Be sure you’re aware of the exclusions that might apply and keep in mind that you’ll need to pay regular premiums to maintain the cover.
Who owns shares in your business, and what would happen if they passed away? Could you afford to purchase their share?
Considering death is difficult, but it’s important to ensure your business has the right protection in place.
A shareholder protection policy is a binding agreement between shareholders. It ensures the shares remain in the business, rather than being inherited with the deceased’s other assets or sold. The policy also ensures that the business has the cash to buy the shares if necessary, which can protect your business if the worst happens.
It can also be beneficial to the deceased’s family, who will have a willing buyer for the shares at a time when they may be more in need of liquid assets or have no interest in being involved in the running of the business.
It’s important to consider what would happen to your business if you were unable to make decisions. This could be temporary, such as if you’re taking a holiday, or long-term if an accident or illness affects your mental capacity.
If this happened, would your business be able to operate? Could tasks such as authorising bill payments or paying salaries still be completed? A business Lasting Power of Attorney (LPA) can protect your interests and those of the business.
It would give someone you trust the ability to make decisions on your behalf. If you didn’t make a business LPA and were unable to make decisions, the Court of Protection could appoint a deputy to act on your behalf. Appointing a deputy could potentially take months, which could leave your business in a vulnerable position, and it may not be the person that you’d choose.
A business LPA can be part of your continuity plan to avoid business disruption.
In some cases, it is possible to have just one LPA covering both your personal and business affairs. However, you should consider if having the same person is appropriate, as it could create a potential conflict of interest, and they may not have the necessary skills. While you may want your partner to handle your personal assets, would they feel comfortable making business decisions too?
We could help you assess how you might protect your business and personal affairs should the unexpected happen. Please get in touch to arrange a meeting.
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
The Financial Conduct Authority does not regulate Lasting Power of Attorney.
Note that life financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
Do you want to create a legacy by passing on assets to your loved ones? There’s more than one way to do it, and you might want to combine several different options.
As part of your estate plan, you might want to consider who you’d like to benefit from your estate and how you will pass on assets. Here are four methods for transferring some of your wealth to loved ones.
Your estate plan doesn’t just cover passing assets to loved ones when you pass away. You might also want to gift assets during your lifetime.
There are several key benefits to creating a living legacy.
First, it could help you provide financial assistance to your loved ones when they need it most. For example, you might gift a lump sum when your children are preparing to buy their first home. A well-timed gift could have a greater impact on your beneficiaries’ financial wellbeing than an inheritance. Plus, you also get to see the comfort your gift provides.
Second, if your estate could be liable for Inheritance Tax (IHT), gifting during your lifetime could reduce a potential bill. If the value of your entire estate is below the nil-rate band (£325,000 in 2026/27), then no IHT will be due. If the value of your estate exceeds this threshold, you might benefit from considering IHT and strategies to reduce it.
Keep in mind that not all gifts are considered outside your estate immediately for IHT purposes. Gifts that are not paid as part of your allowances may be included when calculating IHT for up to seven years after they are given.
In addition, take some time to understand the long-term implications that gift giving now would have on your financial security.
The traditional way to pass on assets is through a will after you die. You can use your will to name who you’d like to benefit from your estate.
You can choose how you want your assets to be distributed. You might:
While it is possible to write a valid will yourself, seeking legal advice could minimise the chance of mistakes occurring.
Once you’ve written your will, it’s important to keep it up to date to ensure it continues to reflect your wishes.
Your pension isn’t usually covered by your will. Instead, you’ll need to complete an expression of wish form with each provider you hold a pension with.
This form states who you’d like to receive your pension wealth when you pass away. An expression of wish isn’t legally binding, but it is something your pension provider will take into account when making a decision.
From April 2027, pensions will be included in your estate for IHT purposes, so you may benefit from reviewing how you’d like to use your pension and pass it on.
A trust is a legal arrangement that holds assets for the benefit of your named beneficiaries. You may use a trust to pass on assets during your lifetime or when you pass away.
There are several different types of trust that have different purposes, and the arrangement of them is often complex. It’s typically difficult or impossible to retrieve assets once they’ve been placed in a trust. As a result, it’s a good idea to seek specialist legal advice to understand if a trust could be right for you and what type of trust might be suitable. Keep in mind, your personal circumstances and goals will affect your options, and trusts are not an appropriate option for everyone.
As settlor of a trust, you can set out how and when you’d like the assets in the trust to be used, which the trustee, who will manage the trust, will follow.
For example, you might decide to place assets in a trust for a child and state that the trustee may make withdrawals for educational purposes, and that the beneficiary can have full control of the assets once they turn 25.
Alternatively, you could state that the beneficiary may receive the dividends paid by investments, but they cannot sell the stocks and shares.
In some cases, you may still benefit from the assets placed in trust during your lifetime.
Like gifts, assets placed in a trust are not automatically outside your estate when making IHT calculations.
If you have any questions about your estate plan and how you might pass on assets to loved ones, please contact us.
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
The Financial Conduct Authority does not regulate cashflow modelling, will writing, estate planning, or trusts.
