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Join the International Franchise Show - Host to the UK’s Biggest Selection of Franchise Opportunities from Around the World

Britain’s Biggest International Franchise Show!

Welcome to the International Franchise Show, host to the UK’s biggest selection of the most exciting franchise opportunities from around the world! Returning on the 14th & 15th of April at the ExCeL in London, thousands of entrepreneurs and business owners will get FREE access to over 250 exhibitors, 60 seminars, 1-2-1 personal advice, interactive features, expert guidance and more. This show promises to be the biggest and busiest yet, boasting limitless choices to start, develop, or invest in a franchise.

Operated by Comexposium, the third largest events organiser in the world, the International Franchise Show has been connecting thousands of budding entrepreneurs with their perfect franchise opportunity for over 13 years. The show also couldn’t be in a better location! The ExCeL has 5 international airports all within an hour’s commute, deeming London as ‘the gateway to Europe - the most accessible city in the world’.

The International Franchise Show also plays host to over 50 international brands across 25+ sectors, offering franchise opportunities from under £10K. There is sure to be something for everyone! Why not attend and see if starting or investing in a franchise could be for you? The most recent Natwest survey in 2019 estimates that the franchise industry is worth £17.2 billion in the UK so it may well be worth dipping your toe into the water. No matter your passion you are sure to find a franchise that is your perfect match. You will come away, at the very least, having gained a wealth of tips, tricks, and knowledge from franchise experts who have been in the game for years or have been met with exponential success.

This year there are talks from McDonald’s, Chopstix, Mathnasium, and Natwest, amongst many other incredible brands from across the globe. There are also such features as The Finance Clinic powered by d&t where you can find expert advice on what finance options are available for you. Plus, there’s The Supplier Zone where a range of businesses showcase their products and services to help get your franchise off the ground and running efficiently. Finally, there is a US Pavilion this year for US brands looking to expand their presence in the UK. Attend the show and explore franchises from every industry, all with a business model that has proven to be successful. Don’t miss the opportunity to access a wealth of information all in one place. 

Get your completely free ticket here and visit on April 14th & 15th 2023, at the ExCeL in London.

Propiteer Capital - Investing in the Booming UK Hotel Sector

Propiteer Capital - Investing in the Booming UK Hotel Sector

Despite some challenges in recent years, the hospitality sector shows great strength and optimism for the new year. Find out more about industry forecasts and hotel investment opportunities in 2023.

With domestic, tourist, and business travel on the rise, the UK hotel sector has been booming its way out of the pandemic. An industry that once crumbled under the pressures of lockdowns has experienced an impressive recovery over the last few years. But this growth doesn’t come without its headwinds, which are primarily triggered by a looming recession and long-term Covid-19 effects, but the sector remains incredibly resilient as hotel bookings, tradings, and investments stay strong.

Success in 2022

Two years since the eruption of Covid-19, the hospitality industry was set for a successful year in 2022. While offices and retail spaces faced a decline, hotels began an upward trend as people were keen to book holidays again and the rise of staycations began. Even by the end of 2021, a year of lockdowns, the global travel industry grew by an astonishing 4% versus 2020. Propiteer blog

Over the course of the past year, hotel performance has met positive expectations and trading proved to be strong throughout. New hybrid working trends and flexible business travel contributed to a strong recovery, and London in particular fuelled significant growth for the UK with occupancy rates in the capital having achieved 70% between April and October 2022. The year ended in a positive position as regional hotels exceeded their 2019 RevPAR (revenue per available room) figure by 3.5%.

Hotel investments also had a strong start to 2022 and held positive momentum throughout the year. In the January to April 2022 period, UK hotel transaction volumes exceeded £1.5bn, surpassing the H1 2021 volumes by 40% and showing a robust sector recovery. Performance was relatively evenly split between London (approximately £750m) and UK regions (approximately £800m). More online

Challenges in 2023

The hospitality sector has certainly had its challenges over the last few years. The economic struggle in 2022 is one of the factors impacting hotel performance and creating an uncertain outlook for the year ahead with soaring inflation, energy, and rising interest rates all providing considerable headwinds. Rising costs threaten areas such as employment and operations, but the government is due to introduce a new tax relief scheme in 2023, which will keep VAT at its current rate beyond April to support hospitality businesses with the growing costs. BBC News link

Covid-19 has also caused some lingering damage. In the UK, the hospitality sector experienced a loss of £115bn as a result of forced business closures and travel bans for months at a time. Even once hotels, restaurants, and airports started to reopen, some consumer apprehension towards travel remained, which caused a delayed recovery. Nonetheless, hospitality has seen one of the strongest bounce-backs from Covid-19 pressures and defied most expectations.

Optimism for hotels in 2023

“…hospitality can and will be the leading contributor to the UK’s economic recovery” – Pernille Thomsen, UK Hospitality

Despite a looming recession and continued fallout caused by coronavirus, there are signs of hope that make this an exciting time to consider investing in the UK hotel sector.

Business travel is one area that has been bouncing back and contributing to the growth of hotels, and both domestic and international travel are confidently returning to pre-pandemic levels. On average, travel managers estimate that domestic <link: https://www.traveldailymedia.com/business-travel-strong-outlook-in-2023-gbta/> business travel volumes are back to 63% and international back to 50% of pre-pandemic levels, and 2023 growth is expected to surpass that of 2022. Optimism is incredibly strong and neither Covid-19 nor economic implications seem to be stopping industry growth in the new year as 75% of travel buyers claim they won’t be limiting business travel due to economic concerns and only 4% say they may limit business due to Covid-19.

Some of the key forecasts for the UK hotel sector include:

· London RevPAR growth to rise by nearly 6%

· London occupancy to increase by over 8%

· UK regions occupancy to increase by over 2%

Despite the regional RevPAR being anticipated to drop by 0.6% in 2023, Samantha Ward, UK Hotels Leader at PWC, says that “hotels across the UK can weather this latest disruption, emerging stronger and more resilient for the future.”

Hilton hotel growth exceeds expectations

One of the largest and fastest-growing hospitality brands, Hilton, is just one example of the remarkable strength, consumer demand, and investment opportunities within the hotel industry. During Covid-19 recovery in 2021, Hilton’s global growth enabled more than one hotel to be opened per day throughout the year. Hilton’s loyalty programme Hilton Honors also expanded to 128m members, a 13% increase year on year to December 2021. Information link

In Q3 2022, Hilton Worldwide sales increased by 36% year on year, and earnings per share (EPS) reached $1.31, up from $0.78 from the previous year and beating the consensus of $1.24. HLT shares are also up 1.48%. Hilton Worldwide President and CEO Christopher Nassetta comments: “Improved performance reflected the continued strength in leisure travel, as well as recovering business transient and group demand. We expect these strong trends to continue throughout the fourth quarter with system-wide RevPAR once again exceeding prior peaks.” Information link

Hotel investment opportunities in 2023

There are many opportunities for commercial investors to take advantage of in 2023. Here are some of the top UK hotel construction projects to explore:

• Duke Street Hotel Complex, Liverpool, $40m – A former car park is being converted into an eight-storey hotel at 107-125 Duke Street.

• Palace Hotel Redevelopment, Devon, $30m – A 5-star hotel conversion of a former Palace Hotel in Torquay is expected to be completed in late 2023.

• Indigo Hotel Development, Coventry, $25m – A five-storey hotel with 100 rooms in Friargate is due to be completed in Q4 2023.

• Hilton Garden Inn Peterborough City Centre, £26m – A prestigious city-centre hotel with an iconic Sky Bar and key tourist attractions nearby aspires to be the finest Hilton Garden inn in Europe to date.

• Hampton by Hilton Exeter Airport, Devon £23m – With easy links to Exeter airport, this award-winning hotel has a focus on sustainability with new solar panels recently installed. The local area is currently undergoing new travel improvements.

This post was written by Propiteer Capital PLC that works with the Hilton group and provides investment opportunities into new hotel developments around the UK and Ireland. Read more

Blevins Franks Financial Tips - The Multi-Manager Investment Approach – Specialists vs Generalists

Multi-manager investment enables your portfolio to be managed by several different fund managers, each selected for their expertise in specific market sectors. This ‘open architecture’ approach reduces your reliance on any one investment manager making the right decisions in all conditions, and provides the opportunity to have some of the world’s best mangers looking after your money.

By Rob Kay, Senior Partner, Blevins Franks
Did you see the athletics at the Commonwealth Games in Birmingham this summer? Or at the World or European Championships? And of course we had the Tokyo Olympics last year. It was great to see British success emerging with the likes of Jake Wightman, Keely Hodgkinson, Laura Muir and Eilish McColgan, but interestingly, there are some aspects of what you may have seen that are directly relevant to investing.

 

Specialists vs generalists – a sporting analogy

A useful way to explain the benefits of a multi-manager investment approach is to compare the difference in performance between a decathlon champion and the individual champion in each event. 

You may have watched the athletics at the Commonwealth Games or European Championships and marvelled at the decathletes’ abilities. They have to be skilled at 10 different disciplines, quite a Herculean task – speed for sprinting, stamina for distance, strength for the field events and technique for events like the pole vault. 

But while the decathlon champion is obviously an all-round athlete performing at an extremely high standard across ten different disciplines, they are frequently beaten by specialists in each of the individual events.

Let’s compare the performance of the decathlon gold medallist at the 2020 Tokyo Olympics (held in 2021) against the individual gold medallists in some of the individual disciplines.

The decathlon champion Damian Warner ran the 100m in 10.12 seconds.  Lamont Marcell Jacobs took just 9.80 seconds in the individual event. The results of the other nine disciplines tell the same story.  For example, Warner threw the javelin 63.44m, while the individual event gold medallist achieved 87.58m.  Warner reached a height of 4.90m in the pole vault compared to the individual champion’s 6.02m.  The specialist performed better than the generalist every time. 

You would not expect a sprinter like Lamont Marcell Jacobs or Usain Bolt to also specialise in pole vault or javelin; specialists tend to be just that – specialists.  There are many situations in life where a specialist performs more efficiently and delivers better results than a generalist, and this is particularly true in investments.

Just because an investment manager is skilled at managing UK equities, for example, does not mean he will be as successful at managing US or Japanese equities.  Managers also tend to specialise in a certain style of investing, and these styles move in and out of favour according to economic and other factors.  They will therefore produce impressive results in certain conditions, but below average ones in others.

Some investors rely on just one or two fund managers to look after their investment capital. But wouldn’t you prefer to have individual specialists managing the various areas of the market your capital is invested in?

 

Multi-manager investing

Today most investors agree that holding different asset classes and different regions and sectors in their portfolio spreads risk.  Multi-manager funds add a third, and increasingly important, level of diversification to your portfolio. 

You will benefit from a team of specialist managers, as well as diversification across multiple investment styles within each fund, with different managers looking after one style. So one fund could have five or more specialist managers, covering a variety of styles (growth, value, quality, risk management, market oriented etc).

This complementary blending of managers and styles can reduce investment risk, regardless of what style is in favour, and help provide more consistent returns through different market environments.

Just like a strained muscle would hamper the decathlete in all his events, if prevailing market conditions are unfavourable to a single manager’s investment approach, performance may suffer.  Multi-manager spreads risk as it lowers the investor’s dependence on the success of a single manager’s approach.  

Going back to the sporting analogy, in the world of athletics individual champions can easily change from year to year.  The same can happen with investment managers, but the multi-manager firm’s research is designed to find the next champions.  They constantly monitor their funds, so that managers can be changed as and when necessary to improve performance for clients.

Multi-manager investing is not designed to attempt to win a gold medal in just one particular season.  Rather, it aims to produce consistent results, season by season, over a long-term period. 

This investment approach can prove suitable for various investors with different needs.  However, you should always discuss your requirements with a professional financial adviser, as your investment strategy should be targeted to meet your personal objectives.  At Blevins Franks, we combine investment advice with effective tax and estate planning strategies, to maximise wealth preservation opportunities.

These views are put forward for consideration purposes only as the suitability of any investment is dependent on the investment objectives, time horizon and attitude to risk of the investor. The value of investments can fall as well as rise, as can the income arising from them. Past performance should not be seen as an indication of future performance.

 

Blevins Franks Group is represented in France by the following companies:  Blevins Franks Wealth Management Limited (BFWML) and Blevins Franks France SASU (BFF). BFWML is authorised and regulated by the Malta Financial Services Authority, registered number C 92917. Authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists.  Blevins Franks France SASU (BFF), is registered with ORIAS, registered number 07 027 475, and authorised as ‘Conseil en Investissements Financiers’ and ‘Courtiers d’Assurance’ Category B (register can be consulted on www.orias.fr). Member of ANACOFI-CIF. BFF’s registered office: 1 rue Pablo Neruda, 33140 Villenave d’Ornon – RCS BX 498 800 465 APE 6622Z.  Garantie Financière et Assurance de Responsabilité Civile Professionnelle conformes aux articles L 541-3 du Code Monétaire et Financier and L512-6 and 512-7 du Code des Assurances (assureur MMA). Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of retirement schemes. This promotion has been approved and issued by BFWML. 

 

 You can find other financial advisory articles by visiting our website here

Blevins Franks Financial Tips - Resolve to Review Your Financial Planning for 2022

Take time to check your tax planning, investments, pensions and estate planning are all on track to protect your family’s long-term wealth. 

The New Year is a time when most of us take stock of our situation and set goals to improve our health, happiness, lifestyle and wealth. This year, make it one of your resolutions to check your financial planning is on track to meet your needs and protect your family’s long-term financial security.

Why regular reviews are important 

Regular reviews help keep your financial affairs compliant and up to date. Tax rules or financial regulations can change at any time, which may affect the tax efficiency – or even legality – of your existing arrangements. There may also be new opportunities that you could find beneficial… but only if you know about them. And with Brexit still relatively new, and more potential changes on the way, it is important to keep ahead of any developments that may affect you, for better or worse. 

You also need to consider if any changes in your personal and family circumstances mean you should adjust your arrangements. Did you welcome any new family members or are there any upcoming major life events – such as retirement, relocation or divorce – that may warrant a rethink of your plans? 

For a truly effective review, and to ensure it is suitable for your life in France, consider how your tax planning, investments, pensions and estate planning work together. 

Tax planning

You should first make sure you know where you are resident for tax purposes, especially if you are new to France or spend time in both countries. You then want to structure your investments and wealth in the most suitable way to minimise taxation – in France, the UK and wherever you have financial interests – while still meeting your obligations. 

In today’s world of ‘automatic exchange of information’, it is more important than ever to get it right. Your local tax office receives financial information about your offshore assets without having to even ask for it. 

Cross-border tax planning is complex, so take specialist advice to achieve peace of mind and potentially secure significant tax savings.

Savings and investments

If you do not already have a financial plan in place for France, you need to take a fresh look at your savings and investments. Are they actually better suited to a UK resident? Do they meet your risk/reward appetite? Are you taking advantage of suitable tax-efficient opportunities in France?

Successful investing is about having a strategy specifically based around your personal circumstances, time horizon, needs, aims and risk tolerance. You should ensure you have adequate diversification to avoid over-exposure to any given country (including the UK), asset type, sector or company. Explore investment structures that allow multi-currency flexibility to help minimise exchange rate risk.  

Pensions

For most people, their pension is key to their financial security through retirement, so deciding what to do with yours could be one of the most important financial decisions you make.  

So take the time to explore all the available options, weighing the pros and cons and considering the tax implications and potential benefits in France. 

Make sure you take regulated advice to protect your retirement benefits from pension scams and do what is right for your personal circumstances and aims. 

Estate planning  

It is vital to review your estate planning when living in France.  Here in France both succession law and tax work very differently to the UK. 

Are you aware, for example, that France’s ‘forced heirship’ rules could automatically pass a significant proportion of your worldwide estate to your direct family, whatever your intentions? You can specify in your will for the EU regulation ‘Brussels IV’ to apply relevant British law to your estate instead, but take care to understand your options and any tax implications. 

Your estate plan should be set up to achieve your wishes in the most tax-efficient way possible. 

To bring all these complex elements together and ensure you have not missed out on any suitable opportunities, take expert, cross-border advice. Spending time on a financial health-check now can secure peace of mind that you and your family are in the best position to enjoy a prosperous 2022 and beyond.    

The tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; individuals should seek personalised advice.

Blevins Franks Group is represented in France by the following companies:  Blevins Franks Wealth Management Limited (BFWML) and Blevins Franks France SASU (BFF). BFWML is authorised and regulated by the Malta Financial Services Authority, registered number C 92917. Authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists.  Blevins Franks France SASU (BFF), is registered with ORIAS, registered number 07 027 475, and authorised as ‘Conseil en Investissements Financiers’ and ‘Courtiers d’Assurance’ Category B (register can be consulted on www.orias.fr). Member of ANACOFI-CIF. BFF’s registered office: 1 rue Pablo Neruda, 33140 Villenave d’Ornon – RCS BX 498 800 465 APE 6622Z.  Garantie Financière et Assurance de Responsabilité Civile Professionnelle conformes aux articles L 541-3 du Code Monétaire et Financier and L512-6 and 512-7 du Code des Assurances (assureur MMA). Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of retirement schemes. This promotion has been approved and issued by BFWML.
 

You can find other financial advisory articles by visiting our website here

UK Pension Benefits - the Lifetime Allowance Limits Explained by Blevins Franks - Wealth Management Advisors

Will your pensions get caught in the lifetime allowance trap? 

By Rob Kay, Senior Partner, Blevins Franks   

If you have several UK pensions, have been saving for many years or have a generous company pension, you could be at greater risk of 25% or 55% tax penalties following recent measures.

One key outcome of the 2021 UK Budget was that the pensions lifetime allowance (LTA) was frozen at its current level for at least the next five years. This measure alone is estimated to net the Treasury approximately £990 million by 2026, pushing an extra 10,000 people over the threshold. With LTA tax penalties as high as 55%, make sure you are not caught unprepared.

What is the lifetime allowance?

Since 2006, the UK government has capped how much you can hold in combined pension benefits without paying extra tax. Originally £1.5 million, the LTA peaked in 2011 at £1.8 million before gradually dropping to £1 million in 2016. Tracking inflation since then, the March 2021 Budget cancelled this year’s scheduled increase, freezing the LTA at its current level of £1,073,100 until at least 2026. 

Who is affected by the LTA?

While the current lifetime allowance of £1,073,100 sounds high, it does not just capture the ultra-wealthy. 

All UK pension benefits outside the State Pension are counted, including everything accumulated over a working lifetime. After decades of pension contributions, compounding interest, investment growth and tax relief, the limit may be closer than you think. 

For ‘final salary’ (defined benefit) pension schemes, the usual measure of value is 20x the annual income due. Generally this will mean those with pensions worth £53,655+ a year would be affected today. 

What are the LTA penalties? 

Once total pension funds exceed the allowance limit, extra tax is payable whenever you access your money – technically called a ‘benefit crystallisation event’. How much you pay depends on the way funds are withdrawn – rates are 55% for lump sums and 25% for income or transfers to an overseas pension. So at best, the cost of being over can be a quarter of your funds, at worst: over half. Note that this is on top of any other tax payable. 

Being non-UK resident offers no protection. Usually, under the double tax agreement, residents of France are not liable for UK taxes on British pensions (except government service pensions). However, for anyone over the allowance, these rules do not apply – the LTA tax is applied in the UK first and cannot be claimed back. 

How can you check your LTA position?

Calculating how much of your allowance you have used is not always straightforward, especially for final salary pensions, so check your position with your provider or pension adviser.

HM Revenue & Customs (HMRC) will first test your allowance status when you start drawing your pension, then every time you access funds and when you turn 75. If you die before 75, any lump sums paid to your beneficiaries will also be subject to the LTA test and subsequent tax penalties. 

How can you protect your pensions?

While it is possible to obtain ‘protection’ from HMRC to secure a higher limit, be aware that strict conditions apply, so take guidance.

Expatriates have the option of transferring UK pension funds to a Qualifying Recognised Overseas Pension Scheme (QROPS). If you transfer one or more UK pensions into a QROPS and your total benefits are under £1.073 million, you will not face LTA taxes on the transfer. However, make sure the QROPS is within the European Economic Area (EEA), otherwise you would still lose 25% through the ‘overseas transfer charge’. 

Once in a QROPS, funds are out of reach of LTA penalties, no matter how much you have or how you access it. A suitable QROPS can also provide tax-efficiency, currency flexibility and estate planning benefits. 

An alternative option is to explore taking your UK pension as cash and reinvesting it into a tax-efficient French-compliant arrangement. Again, this can unlock other benefits not usually available with UK pensions.

Reviewing your options 

Before making any major pension decisions, it is crucial to take regulated, personalised advice to avoid pension scams and determine the most suitable approach for you.

What if you are already over the limit? While you would trigger an immediate 25% LTA charge on a QROPS transfer, the funds become immune to further penalties. If you instead transferred to a UK scheme, like a Self-Invested Personal Pension (SIPP), you would not trigger immediate taxation but the funds would remain liable – with future charges increasing as funds grew. The 25% or 55% LTA penalties would then become payable whenever you take benefits and also apply to any heirs inheriting the pension.

If you are close to the threshold, consider acting sooner rather than later. Your pension funds should continue to grow while the lifetime allowance remains frozen, so you could potentially avoid unnecessary taxation by taking steps now.

Even if your pension benefits are within the allowance or you are not yet ready to access them, it is a good idea to review your situation. A regulated adviser with cross-border experience can help you explore your options and take advantage of tax-efficient opportunities to help secure a comfortable retirement in France.

Tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; individuals should seek personalised advice. 

Blevins Franks Group is represented in France by the following companies:  Blevins Franks Wealth Management Limited (BFWML) and Blevins Franks France SASU (BFF). BFWML is authorised and regulated by the Malta Financial Services Authority, registered number C 92917. Authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists.  Blevins Franks France SASU (BFF), is registered with ORIAS, registered number 07 027 475, and authorised as ‘Conseil en Investissements Financiers’ and ‘Courtiers d’Assurance’ Category B (register can be consulted on www.orias.fr). Member of ANACOFI-CIF. BFF’s registered office: 1 rue Pablo Neruda, 33140 Villenave d’Ornon – RCS BX 498 800 465 APE 6622Z.  Garantie Financière et Assurance de Responsabilité Civile Professionnelle conformes aux articles L 541-3 du Code Monétaire et Financier and L512-6 and 512-7 du Code des Assurances (assureur MMA). Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of retirement schemes. This promotion has been approved and issued by BFWML.
 

The Latest 2021 UK Budget - What Are The Implications For Expatriates?

While there was little in the way of immediate changes in the latest UK Budget, the freezing of some allowances is set to increase tax bills in the long run. 

This year’s UK Budget predictably focused on ongoing pandemic support, bringing very few changes to personal taxes. Chancellor Rishi Sunak did, however, introduce some longer-term measures to collect more tax by freezing the main allowances and exemptions for the next five years. 

According to the Office for Budget Responsibility (OBR), the overall impact of these measures will be that the UK’s tax burden will rise to its highest level since the 1960s! 

So what changes in April may affect UK nationals living in France, and what can you do to minimise any negative impact?

Income tax

UK taxpayers (including non-UK residents) see a slight increase to the personal income tax allowance thresholds at each end: £12,570 at the basic 20% tax band and £50,270 at the higher 40% rate. However, these will be frozen until at least April 2026. 

This is estimated to bring 1.3 million more people into income tax liability, with one million more paying the higher tax rate, altogether netting an extra £8 billion in the 2025/6 tax year. 

Savings and investments

The band of UK savings income that can be earned tax-free stays at £5,000 and the annual ISA subscription limit at £20,000 (£9,000 for a Junior ISA). 

The dividend allowance remains at £2,000.

Remember: investments like ISAs may become taxable in France once you are non-UK resident. Take time to explore alternative arrangements that may be more tax efficient and better suit your circumstances, goals and risk appetite.

Capital gains tax (CGT)

As with income tax, the annual allowance will be frozen for the next five years. Unlike income tax, the CGT allowance does not increase, staying at its current level of £12,300 for individuals (£6,150 for most trusts). 

Despite expectations that CGT rates would be aligned with income tax rates, there is no change here, so rates remain between 10% and 28%.

Don’t forget that, in recent years, non-UK residents became liable for capital gains tax on most UK property and land.

Pensions

Annual allowance: This remains at £40,000 – as it has been since 2016 – and starts reducing once ‘adjusted income’ reaches £240,000.

Lifetime allowance (LTA) – This will not increase with inflation as planned so remains at £1,073,100, where it sticks until at least 2026. 

If your combined UK pension benefits are near the LTA threshold, you need to consider the potential impact of future growth. If investment markets recover in line with the Chancellor’s forecast that the economy will return to pre-pandemic levels by mid-2022, this could bring many more pension funds within the scope of the LTA’s 25% or 55% penalties. The Treasury expects to collect an extra £250 million as a result.

QROPS – There were no changes to Qualifying Recognised Overseas Pension Schemes, with transfers to EU/EEA-based QROPS still tax-free for EU residents. The 25% ‘overseas transfer charge’ continues to only apply to transfers outside the EU/EEA. But now the UK has left the bloc, this could potentially be extended to capture EU transfers in future. 

Once in a QROPS, UK pension funds become immune to LTA penalties and future changes to UK pension rules while unlocking other benefits, so carefully consider your options here. 

Inheritance tax

Despite much anticipation that this year could see inheritance tax changes, again the only action was freezing the exemptions, allowances and reliefs for the next five years.

The tax-free ‘nil rate band’ allowance stays at £325,000 per person (unchanged since 2009!) The residential nil rate band (RNRB) – which provides extra tax relief when passing on a main home (including overseas) to direct descendants – remains at £175,000 per person.

The Treasury collected £5.2 billion in inheritance taxes in the 2019/20 tax year. With these latest freezes, they expect to generate an additional £15 million next year, increasing to £445 million by 2026.

What can you do to minimise the impact?

Although this new tax year brings relatively few changes, there are longer term implications. The Chancellor’s strategy of freezing allowances, exemptions and reliefs is clearly designed to raise more tax revenue as people’s income, capital gains, and asset values grow. Taxpayers may also feel the pinch as the cost of living increases over time. 

Wherever possible, you should make full use of the available allowances each year to help minimise your tax bill. However, no one action in isolation will make a substantial difference. You need to make sure your overall financial arrangements are structured as tax efficiently as possible for your life in France to help minimise exposure for you and your heirs. 

As always, subsequent Budgets can change the current trajectory by introducing new taxes with little notice, but this is especially likely as the economy picks up and the government looks to recoup its pandemic spending.  

This is a good prompt to think ahead and review your tax planning to check you are making the most of all the available tax-efficient opportunities, in the UK and your country of residence. For the best results, take personalised advice from a cross-border specialist with understanding of both the UK and French tax regimes.

Rob Kay, Senior Partner, Blevins Franks

Tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; individuals should seek personalised advice.

Blevins Franks Group is represented in France by the following companies:  Blevins Franks Wealth Management Limited (BFWML) and Blevins Franks France SASU (BFF). BFWML is authorised and regulated by the Malta Financial Services Authority, registered number C 92917. Authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists.  Blevins Franks France SASU (BFF), is registered with ORIAS, registered number 07 027 475, and authorised as ‘Conseil en Investissements Financiers’ and ‘Courtiers d’Assurance’ Category B (register can be consulted on www.orias.fr). Member of ANACOFI-CIF. BFF’s registered office: 1 rue Pablo Neruda, 33140 Villenave d’Ornon – RCS BX 498 800 465 APE 6622Z.  Garantie Financière et Assurance de Responsabilité Civile Professionnelle conformes aux articles L 541-3 du Code Monétaire et Financier and L512-6 and 512-7 du Code des Assurances (assureur MMA). Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of retirement schemes. This promotion has been approved and issued by BFWML.

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