We’re buzzing with the fine seasonal weather and really enjoy seeing our clients again, in person on a one to one basis. Zoom and Teams calls definitely have their uses, but there’s nothing quite like a good catch up and advice over a cuppa at the office.
Changes to registering Trusts
HMRC’s Trust Registration Service (TRS) was developed in 2017 as a result of anti-money laundering regulations. Recent changes mean that any trust in existence as of 6 October 2020 will be required to comply with the updated trust registration requirements. These trusts, along with any created subsequently, will be required to register by 1 September 2022. If you set up a Trust or are a Trustee, you are a ‘Reportable Person’ responsible for ensuring the Trust is registered.
The types of Trust arrangements this applies to are all UK resident express Trusts that have at least one UK resident Trustee and holds UK property, land or assets. Typical examples of Trusts not previously required to register are:
- Non-taxable Trusts
- Bare Trusts or Nominee arrangements – where an asset is held for another person, for example, where an investment is held for a child
- Property Trusts – where a share of a property is in Trust, for instance through a discretionary Will Trust
Once the Trust is registered, the Reportable Person is responsible for updating HMRC with any changes to the Trust within 90 days of them occurring.
Full details can be found here: https://www.gov.uk/guidance/manage-your-trusts-registration-service
Where we have recommended a Trust to you, we will contact you directly if we haven’t already done so. However, should you need to register, this is best left to the professionals who helped you, such as your accountant or solicitor, or we can suggest a professional who can do this for you at a competitive cost. Please contact us if this is the case. If we did not recommend the Trust to you, please contact the accountant or solicitor who maintains responsibility to make sure the Trust is registered and that all the details on HMRC’s systems are correct.
It’s likely that there will be a late surge of interest for those not in the know, or perhaps engaged in a bit of procrastination. We suggest this is addressed sooner rather than closer to the deadline.
Turbulent stock markets
Most of our clients have unfortunately experienced recent downward movement in their portfolio’s value. With the current economic climate, this short term becomes more real and we therefore need to keep an eye on the longer term and the real reason for the investments. Our meetings with clients over the last few months have been to reassure them that they should not panic and move their investments to cash, as this “crystallises” the loss current showing on statements. These market falls have happened many times in the past and the advice remains the same.
Timing the market is pretty much impossible and it is important to remember that “time in the market” has historically been shown to be a better decision that trying to “time the market” for re-entering after moving to cash in a panic. Once in cash, people tend to wait until stock markets are buoyant again before moving back into investments. This means they can never recover the money lost as they will have missed much of the upturn in growth.
This topic was covered when Headley Director Phil Hasell recently met Lothar Mentel, the Chief Investment Officer of Tatton Investment Management, one of the investment companies that we use within our portfolios. For more detail on current stock markets views, what clients should generally do during turbulent times and who Tatton are, please click on the links below:
Retirement planning for business owners
If you are on social media, especially Linked-In, you may have recently seen our article on the issues around business owners planning for retirement and the tips and tricks that can be used to help. This is a helpful guiding hand for those considering either winding up or selling on their business so that they can retire:
https://www.headleyfs.com/news/the-business-owners-retirement-roadmap/
In addition to this, we’ve also launched our “Five retirement planning myths” campaign, to highlight to people that they shouldn’t believe all they hear around pensions. It is sometimes difficult to cut through the vast opinions and comments made by individuals who are not aware of all the facts or people’s particular circumstances. The link below tries to de-mist some of the myths.
https://www.headleyfs.com/news/5-retirement-planning-myths/
If there are issues in these articles that resonate with you and you would like to discuss them further with us, please contact your adviser here.
Alton In Bloom
As part of the Jubilee celebrations, Headley was proud to be a sponsor of Alton in Bloom. This photo was from the Alton Public Gardens where our display is, set up in time for the main Jubilee weekend. With the amazing weather we’ve had since then, the flower bed is looking fantastic.
And finally…
We are pleased to announce that Rob Barnes has been promoted to Operations Manager with effect from July 2022. Although Rob will still be advising clients and carrying out some of his previous paraplanning duties, we are really pleased to be able to promote home grown talent within Headley and wish Rob every success in his new role.
Rob will be taking over from Amy Trent, who will be retiring in the summer and has made a huge impression upon the way we operate as a company over the last few years, driving standards, procedures and the client experience higher. We wish her all the very best for the future. As Amy is a keen and competent gardener, she may pop back to keep an eye on our flower bed in the town park.
We look forward to continuing to work with you and help you enjoy life enriched
Past performance is not a reliable guide to the future. The value of investments and the income from them can go down as well as up. The value of tax reliefs depend upon individual circumstances and tax rules may change. This newsletter is provided strictly for general consideration only and is based on our understanding of current law and HM Revenue & Customs practice. No action must be taken, or refrained from, based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned in connection with the content hereof and any such action or inaction. Professional advice is necessary for every case.
