Global Equity markets are shaky, the U.K has overspent and many people are not sure of the future as far as jobs, money & finances are involved. It might all seem really bleak & indeed the United Kingdom has a lot of anguish to stand before we start to get the finances straight. Although the new coalition government might begin to address the issues facing the economy we can all take time to review our own private finances.

I truly believe that where change happens, chances are present. The emergency budget could close off many loopholes as far as tax planning is involved, but others may become available to promote entrepreneurship and long term saving. Personally if you can obtain the best investment return for the amount of risk you are prepared to accept , combined with using tax breaks and low cost investment funds, then over the long term you should see the benefits.

The old phrase “don’t let the tax tail wag the dog” has never been truer. Seemingly a large number of people with buy to lets have put them on the market, hopefully to sell before the emergency budget in three weeks time. The reason is the possible modification to capital gains tax. Great, but what if the government decide to backdate CGT to the 6th of April. In reality these investors should have taken the possible action of CGT into account when planning their investment portfolios. Property is an ill-liquid asset it cannot be easily disposed of. Due to the increase in property values over the last 10 yrs some investors will face potential CGT bills when they least expect it.

A good financial adviser will be able to indicate the Disadvantages and Advantages concerning different types of investments. This should include the investment risks and possible tax implications.

Consilium Asset Management Ltd is an IFA in Bristol.