So, it begins! 2021

11 January 2021

January has begun, admittedly in lockdown, and 2021 is now underway. Any muted festivities are now becoming a distant memory as we all cope with the important restrictions now applicable.

With the ramifications of the agreed Brexit now being revealed, the progress of the roll-out of the vaccines across the UK and abroad is at least something to cheer us along in lockdown as we look forward to the spring/summer and (hopefully) a release from the many constraints we endured in 2020 and into 2021.The thoughts of a warm summer and perhaps the ability to go on holiday are, I am sure, high on the list of objectives for the latter half of the year ahead.

January is historically a time for booking a holiday (which is now looking possible), potentially thinking about moving to a new house or changing job, New Year's resolutions…and their demise, some abstinence for many and hopefully some financial planning.

We are of course approaching the end of the tax year 2020/2021, and my usual reminder to use up (or potentially lose) annual allowances where available and affordable remains constant. Indeed, we need to be mindful that there is a planned Budget in March 2021 (date yet to be announced), and the Chancellor this year will of course have to consider how he can claw back some of the significant government borrowing seen in 2020.

Higher taxes are likely to be required; it is just a question of how the Chancellor and his team apply them, and how quickly. It would be easy to speculate on the areas potentially in focus, and if you have any concerns then please do speak to me or the team. We do plan to produce a new Newsletter in March 2020 and we will provide an update of any changes as we have them. Our website is updated regularly if you would like to look at this in advance.

The announcement of the various vaccines in November 2020 saw most global investment markets rally and hold their gains through Christmas and into January 2021. We hope this continues, although not guaranteed. There was also concern at the start of the summer of 2020 that dividend yields would fall, and there were some reductions. However, these are starting to recover, and we look forward to 2021 with greater confidence that these will return to normality.

However you plan your finances and money, taking stock at the beginning of a calendar year is always a good strategy, taking advantage of allowances where available. Talk to the team at Chapters Financial in Guildford for your needs and requirements, and we hope you have a good year ahead. Stay safe please.

No individual advice is provided during the course of this blog.

Keith Churchouse FPFS

Director

Chartered Financial Planner

Chapters Financial Limited

Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899