Scarlett Wayne Finance

11/05/2023

UK interest rates have been raised for a 12th time in a row in a further attempt by the Bank of England to slow rising prices.

The increase to the Bank's base rate from 4.25% to 4.5% means rates are now at their highest level since the height of the global financial crisis in October 2008 when several banks collapsed, almost 15 years ago.

The rise is likely to heap further pressure on many households struggling with the cost of living.

It will mean higher mortgage payments for some homeowners, while people looking for loans will face higher borrowing costs. However, high-interest rates can benefit savers.

If you have any questions or need any assistance please let us know.

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The Bank of England has raised the rate to 4.5% from 4.25%, pushing up mortgage costs.

27/03/2023

European Union leaders and the ECB sought to calm market jitters by presenting a united front on the banking sector on Friday, saying EU lenders are well capitalised and liquid thanks to lessons drawn after the 2008 Lehman Brothers collapse.

"Our banking sector is resilient, with strong capital and liquidity positions," the leaders of the 27 EU countries said in a statement at the end of a meeting devoted to the economy in general but overshadowed by plunging bank shares.

European Union leaders and the ECB sought to calm market jitters by presenting a united front on the banking sector on Friday, saying EU lenders are well capitalised and liquid thanks to lessons drawn after the 2008 Lehman Brothers collapse.

17/02/2023

Anyone aged between 45 and 70 set to receive the new state pension and missing National Insurance contributions (NICs) can plug gaps back to 2006.
But after April 5 you will only be allowed to backdate missing payments by up to six years. So you should fill any gaps before April 5.
You need 35 years' worth of NICs to get the full pension amount which is currently £185.15 per week, and £203.85 from April.
Currently, the state pension age is 66.
But you might have gaps in your NICs if you were not earning enough, or were unemployed and not claiming benefits.
Plus, you won't get NICs if you were self-employed but did not pay contributions because of small profits or you were living or working outside the UK.

If you need have any questions please let us know?

16/02/2023

Britain’s FTSE 100 share index has passed 8,000 points for the first time, as fears of a global recession ease.
In an afternoon surge, the index of the largest 100 companies listed on the London Stock Exchange hit 8,003.65 points, a new record.

It edged down again at the end of Wednesday, closing at 7,997 points, a gain of 0.55% over the day.
Shares were boosted as traders welcomed Wednesday’s release of better-than-forecast inflation numbers, raising hopes the Bank of England will not be bounced into hiking its rate further than markets are anticipating. The consumer prices index fell to 10.1% for January, down from 10.5% in December and more than the 10.3% that had been expected.

The FTSE 100, which is dominated by multinational companies, has been lifted in recent weeks by optimism that the global economy could fare better than feared this year.

The index of largest companies listed on the London Stock Exchange reaches its highest level

15/02/2023

UK Basic and New State Pension payments will increase this year by 10.1 per cent for some 12.6 million older people across the country, including around one million living in Scotland.

The uprating means that those on the full New State Pension will see payments increase from £185.15 to up to £203.85 each week and those on the Basic State Pension will see weekly payments rise from £141.85 to up to £156.20. The amount someone receives depends on National Insurance (NI) contributions.

However, while the increase will help offset the ongoing cost of living crisis.
Someone with 35 years’ worth of NI contributions, on the Full New State Pension, will receive £815.40 every four-week pay period, giving them an annual income of £10,600.20.

31/01/2023

The UK economy will shrink and perform worse than other advanced economies, including Russia, as the cost of living continues to hit households, the International Monetary Fund has said.

Please let us know if you have any questions about how inflation and interest rates affect your finances now you reside in Europe.

Even sanctions-hit Russia is expected to grow this year, but the IMF says the UK is "on the right track".

18/01/2023

Price rises in the UK slowed for a second month in a row but the cost of food including milk, cheese and eggs kept inflation at a 40-year high.

Inflation, which measures the rate of price rises, fell to 10.5% in the year to December from 10.7% in November.

Petrol and diesel costs eased last month but food prices continued to soar, reaching the highest since 1977.

Restaurants and hotel prices also jumped in December along with a record rise in air fares.

Millions of people are struggling with the cost of living which has been rising steadily as Covid restrictions eased and Russia launched its assault on Ukraine.

01/01/2023

Inheritance tax receipts have nearly doubled in the last 10 years, and are expected to keep increasing.
If you are UK domicile or have assets in the UK it's vital you speak to an advisor to ensure you protect your wealth and it's passed on in the most tax-efficient manner.
Just because you live outside of the UK, It doesn't mean you are exempt from UK inheritance tax,
Message us to arrange a complimentary consultation to ensure your loved ones get what they deserve.

16/12/2022

Do you think pensions should be taxed on death?

Grieving families could lose an extra £60,000 to inheritance tax and income tax under proposals to change how pension pots are taxed at death.

The Institute for Fiscal Studies has recommended in a report published today that pension pots should be included as part of taxpayers’ estates for IHT purposes, stripping families of one of few vehicles allowing them to pass on more to their children and grandchildren after death.

The think tank also argues that income tax should be charged on inherited pensions regardless of the age of the deceased.

Under the proposals, someone inheriting a typical £100,000 pension pot from someone who had already used up their IHT allowances would lose £60,000 – because they would be hit by the 40pc IHT charge as well as 20pc on the pension pot itself if they were a basic-rate taxpayer.

https://www.telegraph.co.uk/tax/news/death-tax-grab-pensions-could-cost-families-60000/

New proposals suggest pension pots should be included as part of taxpayer's estates

15/12/2022

Interest rates have a huge impact on the economy, this is a short video by Andrew Bailey the Governor of the Bank of England.

Please let us know if you have any questions about how inflation and interest rates affect your finances now you reside in Europe.

15/12/2022

The Bank of England has raised UK interest rates to their highest level for 14 years as it battles to stem soaring prices.

It increased them to 3.5% from 3%, marking the ninth time in a row it has hiked interest rates.

The rise will mean higher mortgage payments for some homeowners and those with loans at a time when many people are struggling with the cost of living.

It should also benefit savers, if banks pass on the higher rate to customers.

The Bank of England has been attempting to calm rising prices since the end of last year.

Inflation - the rate at which prices rise - has been increasing at its fastest rate for 40 years as the cost of food and energy soars.

Raising interest rates should, in theory, encourage people to borrow and spend less and save more. This should help bring down the rate of inflation.

Announcing its latest rise, the Bank indicated it was likely to continue to increase interest rates next year.

https://www.bbc.com/news/business-63977963

The Bank of England lifts borrowing costs to 3.5% from 3%, the ninth rise in a row.

14/12/2022

UK inflation falls from 41-year high in run-up to BoE rate decision

British inflation fell more than expected in November after it hit a 41-year high in October, raising hopes that the price surge has peaked and offering some comfort to the Bank of England as it prepares to raise interest rates again.

The annual rate of consumer price inflation dropped to 10.7% in November from 11.1% in October, the Office for National Statistics (ONS) said, a bigger fall than the decline to 10.9% which economists had forecast

https://www.reuters.com/world/uk/uk-inflation-falls-107-november-2022-12-14/

British inflation fell more than expected in November after it hit a 41-year high in October, raising hopes that the price surge has peaked and offering some comfort to the Bank of England as it prepares to raise interest rates again.