Busy start to 2026

The team has had a slightly busier than usual start to the new year, with lots of client reviews and some clients seeking advice regarding the Government’s reforms around pensions becoming liable to Inheritance Tax (IHT). 

From April 6th next year, most unused pension funds and death benefits will be included in a person’s estate for IHT purposes, subject to the standard 40% rate if the total estate exceeds thresholds. Please do get in touch if this is something you would like to discuss.

It is also worth noting that the end of the 2026 tax year (April 5th) falls on Easter Sunday, so we would recommend that any year-end planning, such as ISA or pension contributions, are completed well ahead of the holiday weekend. 

Looking more broadly, investment returns continue to be positive with the impact on global growth from AI remaining buoyant. 

The picture across the global markets remains extremely healthy, including this week’s record high on the Japanese stock market following the landslide re-election of Sanae Takaichi. 

The so-called emerging markets have also enjoyed a strong 12 months at a time when the US markets are slightly less dominant.

All of this has been favourable for client portfolios and, as we always say, demonstrates the importance of maintaining well diversified, balanced portfolios.

Closer to home, we have witnessed the latest bout of Westminster psychodrama. Episodes of this nature appear to have become the norm, irrespective of which party is in power.

The bond markets like stability and the confidence that whoever is in power has a reasonable economic plan. That is why moves such as the increase in fiscal headroom to £22billion announced in the Budget at the end of November were welcomed, helping to provide a level of certainty and security.

This week, we initially saw a rise in borrowing costs when Prime Minister Keir Starmer’s position seemed in most jeopardy, only to recalibrate when his Cabinet came out in support and the immediate threat to his leadership appeared to recede.

Any change in tax and spend policies that may be triggered by a change of leadership has the potential to unnerve the markets, although it is also the case that small changes in approach will almost certainly be priced in.

As ever, please do get in touch if you would like to talk through anything with a member of our team.