So the BBC News specials have been shelved, the commemorative 50 pence Brexit coins are still in the holding bay at the Royal Mint, party organisers on both sides of the debate are re-thinking whether to celebrate or commiserate. And those “British Independence Day 29.03.19” t-shirts for sale on eBay? Well let’s just say, there’s plenty going spare, if you still want one.
Yes, on the day that Britain should be leaving the EU we’re still in limboland. Theresa May clearly has her work cut out to end this uncertainty, one way or another. But if you haven’t got your financial affairs in order yet this tax year, you also have work to do.
Because, while Brexit groundhog day continues, there is one certainty amid all the chaos. The end of the tax year is looming and that date is not going to shift.
Today marks the end of the working week and also the start of the last weekend before the new tax year begins on 6 April.
Between now and then, if you haven’t done so already you have work to do. Graham Smith takes you through what you need to do to shield your investments from capital gains and income tax in an ISA or take advantage of the tax relief available from making contributions to a self-invested personal pension, or SIPP, in 2018-19.
Fidelity’s Investment Director, Tom Stevenson, has chosen four funds to add to his ISA before the tax year-end. Suitably defensive, he’s selected them all because he believes they have the capacity to grow, but also protect against market turbulence.
Tom's picks are:
- Lindsell Train UK Equity Fund
- Fidelity Global Dividend Fund
- Baillie Gifford Japanese Fund
- Fidelity Select 50 Balanced Fund
If you’re reluctant to make investment decisions at a time of such uncertainty, keep this short-term turmoil in perspective. As Graham says: “One of the biggest dangers encountered by investors is getting swept up in a tide of short term market sentiment that either deters investing when the news is bad or encourages too much investing when markets are riding high and everyone seems confident about the future. These tendencies have a habit of forming patterns of disappointment even experienced investors can be afflicted with.”
Don’t fall into the trap or you’re likely to end up kicking yourself later.
Time is of the essence, if you want to take advantage of all the tax perks available to you before the ‘witching hour’ of midnight on 5 April takes them away.
Oh and one less hour than you might otherwise have had, because the clocks go forward at 1am on Sunday morning. Just saying.
Tom’s ISA picks
Lindsell Train UK Equity Fund
Fidelity Global Dividend Fund
Baillie Gifford Japanese Fund
Fidelity Select 50 Balanced Fund
Stocks and Shares ISAs
Self-Invested Personal Pensions
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The value of investments can go down as well as up so you may get back less than you invest. Overseas investments will be affected by movements in currency exchange rates. Tax treatment depends on individual circumstances and all tax rules may change in the future. Withdrawals from a pension product will not normally be possible until you reach age 55. This information is not a personal recommendation for any particular product, service or course of action. If you are in any doubt we recommend that you seek advice from an authorised financial adviser.