Market update
- Artificial Intelligence continues to drive positive market performance.
- US dollar strengthens whilst sterling weakens against the dollar and the euro amid continued geopolitical tensions.
- Gilt yields (the interest rate the UK government pays to borrow money) rose to their highest levels in decades, with the 30-year gilt reaching levels not seen since the late 1990s. This was partly driven by global factors, particularly higher energy prices linked to the Iran conflict. But investors are also concerned that political instability could lead to less disciplined government spending.
- Inflation falls to 2.8% in the year to April, down from 3.3% in the year to March – a bigger than expected drop due to lower gas and electricity bills. However, it’s expected to rise again as continued pressures from the Iran conflict feed through into global prices.
- Trump-Xi summit – a meeting between US President Donald Trump and Chinese President Xi Jinping – offers economic optimism, boosting markets.
Your legacy: taking control of what you leave behind
Inheritance tax receipts reached a record £8.5 billion in the 2025/26 tax year, up 3.6% on the previous year – according to HMRC.
Frozen tax thresholds combined with rising property values, mean more estates are now being affected, beyond just those of the wealthy.
This is expected to increase further from April 2027, as most unused pension funds and death benefits will be included within an estate and will potentially be liable to inheritance tax for the first time – impacting more families.
The growing importance of estate planning
So what can you do? If you want to leave your money and valued possessions to the people you care about – and potentially limit an inheritance tax bill – planning is essential. And reviewing your plans regularly can also help ensure everything stays on track as your circumstances, and laws, change over time.
I’m here to help if you have any questions or would like to discuss this in more detail.
Tax rules can change and the impact of taxation, and any tax relief, depends on your personal circumstances and where you live.
Bringing pensions together – new pensions dashboard
The MoneyHelper pensions dashboard, being developed by the Money and Pensions Service (MaPS), has reached an important stage.
Around 1,000 pension providers and schemes are now connected, bringing together more than 60 million private pension records along with the state pension.
The new dashboard will allow people to securely view all their pension details online, in one place, for the first time – including their state pension as well as any lost or forgotten pensions.
Extensive user testing is currently being conducted with actual users, and the launch is still at least six months away. Early feedback indicates that people consider the dashboard easy to use, appreciate having all their information in one place, and have saved time by not needing to access various systems and providers.
If you have any questions about this email, or anything else, please get in touch – I’m here to help.
Best wishes
Paul Huggins Financial Adviser Huggins Wealth Management Ltd