Good morning and welcome to your Morning Briefing for Wednesday 22 January 2025. To get this in your inbox every morning click here.
New CEO for Transact
Transact chief executive Jonathan Gunby has announced he will retire from the business in March 2025.
Current chief development officer Tom Dunbar will take over as CEO of Integrated Financial Arrangements – the operator of the Transact platform.
IHT receipts rise again
Inheritance tax receipts for April to December 2024 are £6.3bn, which is £600m higher than last year, continuing the “strong” upward trajectory seen over the past few years.
The current £325,000 nil-rate band has been at that level since 2009.
Future fiscal policies
Incoming Republican majorities in Congress have promised various policy changes for the federal government.
But first, they must address a trio of fiscal challenges to keep the government running while figuring out how to fund it: the 2017 Tax Cut and Jobs Act, the debt ceiling and the federal budget.
In this article, American Century Investments vice president Balaji Ventkataraman believes extending or revamping existing tax law will largely inform how Republicans shape the 2025 fiscal budget.
Quote Of The Day
Despite a chunky rise in the tax take of £4bn, the cash coming in just isn’t covering what’s going out, especially when those increases are offset by a fall in National Insurance contributions
– Danni Hewson, head of financial analysis at AJ Bell, comments on the latest UK public-sector finances
Stat Attack
London and Home Counties investors will be the hardest hit by the increase in the rate of capital gains tax announced at the recent Budget, UHY Hacker Young has revealed.
£430m
Investors in London face a rise in their CGT bills.
£306m
Those in the South East (excluding London) will pay more.
£50,270
For those with incomes of more than £50,270, the tax on capital gains has increased from 20% to 24%.
£1.44bn
Amount extra the government has estimated it will raise in the first full year following the changes in the Budget.
£108m
Residents of Kensington and Chelsea will bear the biggest share of the increase in CGT any area in the UK.
Source: UHY Hacker Young
In Other News
Aegon has appointed Antonia Balaam as the pension provider’s head of master trust, a newly created position within the company.
With 28 years of experience in actuarial and DC pension consultancy and client management, Balaam leads the client relationship teams at Aegon.
In her new role, she will continue to report to Nick Roy, workplace commercial director at Aegon.
Oakglen Wealth has further expanded its UK investment management team as it prepares for continued growth in the year ahead.
Jack Harris joins Oakglen Wealth from Quilter Cheviot as investment manager.
Within Oakglen Wealth, Harris is joining the London team led by Dominic Tayler.
He will be working closely with Nick Davis, investment director, responsible for financial advisers.
This team is expanding rapidly following Oakglen Wealth’s strong five-year performance track record.
LGPS investment pool London CIV has named Jenny Buck as its new chief investment officer (CIO).
She was previously CIO at Tesco Pension Investment Limited, which she first joined in 2011 as part of its founding leadership team.
She has more than 30 years’ experience in investment management, with extensive expertise in business and people management, asset allocation and investment solutions across multiple asset classes.
From Elsewhere
Davos bankers feel Trump tailwind that leaves Europe chasing US (Bloomberg)
Borrowing hits a four-year high for December (Sky News)
HMRC denies ‘deliberately poor’ phone service (BBC News)
Did You See?
Artificial Intelligence (AI) is set to transform financial planning over the next 3-5 years. It will automate manual processes, efficiently converting tasks that currently take hours into minutes, reduce compliance burden and improve the quality of advice.
Benchmark Capital chief executive Ed Dymott believes the impacts of AI extend far beyond financial planning and it will find its way into pretty much every walk of life. In fact, he says, it already is.
“Consider how Google interacts with you: instead of simply listing a series of websites, it now uses data to respond to your questions,” he writes, in an article for Money Marketing.
“Your mobile phone looks at your calendar to map your travel time, any preparation you might need and highlights anyone you might want to contact on the move.”
He argues that AI will become as integrated into our lives as smartphones are currently connected to the palm of our hands.
Even today, the chances of an individual using AI in their everyday life is more than 74%.
“So,” he says, “if I am so certain of its impact, why would I suggest that AI might be the next snake oil?”
Comments