News in Review
- Iran conflict continues to drive market volatility.
- Strait of Hormuz closure intensifies global oil supply strain. Rising oil prices have pushed inflation expectations higher, meaning government bonds haven’t offered their usual protection for multi-asset investors. In contrast, the US dollar has strengthened as investors seek safe haven assets.
- Inflation expected to rise. The Office for Budget Responsibility (OBR) has said pressure on energy prices could push inflation close to 3% by the end of the year.
- UK Gross Domestic Product (GDP) showed no growth in January, signalling continued economic pressure.
- Bank Rate remains at 3.75%.
Last chance to use your £20,000 ISA allowance
The tax year ends soon and your ISA allowance won’t roll over. Make the most of this opportunity – use up to £20,000 across cash, stocks and shares, or a mix of both before it disappears on 5 April.
An ISA is a tax-efficient way to save or invest up to £20,000 each tax year. From April 2027, the cash ISA limit drops to £12,000 (except for over‑65s, who keep the £20,000 limit). Any money invested in a stocks and shares ISA should be money that you don’t need in the short term – typically the next five years. Remember, the value of your investment can go down as well as up so you might not get back the amount you put in. Tax rules can change and the impact of taxation depends on your circumstances and where you live. Don't forget to check out our new checklist below to help you save a little extra money and potentially reduce any tax you may need to pay. Click 'Get ready for Tax Year End' for more information. And if I can help with anything, please get in touch.
Understanding income protection: What it covers
So what is income protection and what does it really cover? Income protection insurance is designed to replace part of your income if illness or injury stops you working – yet many misconceptions still deter people from considering it.
It’s not the same as life insurance or critical illness cover – instead, it provides ongoing support when you can’t earn (subject to policy conditions). Contrary to belief, self-employed workers can take it out and it doesn’t normally pay for redundancy – it’s specifically for incapacity due to health issues. Policies don’t pay out immediately – there’s usually a waiting period, and most cover a portion, rather than all of your salary. Understanding how income protection works can help protect your financial stability. If you’d like to talk through how it could help you, please get in touch.
If you have any questions about this email, or anything else, please get in touch – I'm here to help.