Podcast Summary
Leverage LinkedIn for Hiring, New Mortgage Rates, and Inheritance Tax Opportunities: Small businesses can expand their candidate pool by posting jobs on LinkedIn. New mortgage rates offer some relief, but securing a loan remains competitive. Inheritance tax planning and investment opportunities are worth exploring.
Small businesses missing out on potential hires by not utilizing LinkedIn for job postings. LinkedIn hosts professionals who aren't actively seeking new roles but could be open to the right opportunity. With over 70% of LinkedIn users not visiting other leading job sites, businesses risk missing out on top candidates like Sandra. Therefore, it's crucial for businesses to start hiring professionally and post their job openings on LinkedIn.com/people. Regarding money matters, after the Bank of England base rate cut, new fixed and tracker rate mortgages have emerged, with some lenders offering rates as low as 4.5% for fixes and 4.89-4.99% for trackers. While these rates are an improvement compared to previous rates, they still represent a significant margin over the 3% base rate. Lenders are being selective about who they lend to, making it challenging to secure a mortgage. Additionally, there are opportunities to reduce inheritance tax bills, and investing in funds has some good news amid the bad news. FT Money's Charlene Goff, the latest award winner in the mortgage category of the Personal Finance Media Awards, provides insights on these topics, along with John Whiting, tax partner at PricewaterhouseCoopers, on the Feet Money Show. In summary, businesses should leverage LinkedIn for hiring, and individuals can take advantage of the new mortgage rates and inheritance tax opportunities. Stay informed about money matters by tuning into the Feet Money Show.
Changes in lending policies make it harder for borrowers to secure the best mortgage rates: Borrowers now need excellent credit, large deposits, and careful base rate predictions to qualify for lowest mortgage rates. Max LTV for trackers decreased to 75%, making it harder for some. Existing mortgage rates have become more attractive due to recent cuts, but new borrowers struggle to secure competitive rates, especially for buy-to-lets.
Due to changes in lending policies, borrowers now need to have excellent credit, large deposits, and carefully consider base rate predictions to secure the best mortgage rates. The maximum loan to value ratio for trackers has decreased from 85% to 75%, making it harder for some to qualify for the lowest rates. Additionally, many borrowers with existing mortgages are finding that their standard variable rates have become more attractive due to recent rate cuts. However, for new borrowers, it's becoming increasingly difficult to secure competitive rates, especially for buy-to-let mortgages. Overall, the mortgage market is becoming more complex, and borrowers need to be well-informed and strategic to secure the best deals.
Relief for Inheritance Tax in a Downturn Economy: During a market downturn, the revenue may accept a lower valuation of assets for inheritance tax purposes, potentially resulting in savings or a refund
For those considering buying property as a buy-to-let investment, obtaining a mortgage may still be challenging despite decreasing property prices. On a brighter note, there's potential relief for homeowners and investors regarding inheritance tax. John Whiting, tax partner at PwC, explains that when someone dies, the value of their assets, including a house, is assessed at the time of death. However, the revenue may be willing to accept a lower valuation if prices have dropped since then. This could result in savings or even a refund of previously paid inheritance tax. The process involves estimating values during the probate process and negotiating with the revenue for significant assets. Although there's a formal valuation process, the revenue is aware of the market downturn and may be open to discussion. This relief may bring some comfort to those dealing with inheritance tax in the current economic climate.
Relief measures for executors during declining property and share prices: Executors of estates have up to 3 years to revalue properties and 12 months for quoted shares for IHT purposes during declining markets, potentially reducing overpaid taxes.
During times of declining property and share prices, there are relief measures in place for executors of estates to help mitigate the impact on Inheritance Tax (IHT). These measures allow executors to use the proceeds from the sale of assets within a certain timeframe to revalue the estate for IHT purposes. For properties, this window is up to 3 years, with an additional year if the property is sold at a loss. For quoted shares, the timeframe is 12 months. These provisions can provide some relief during financially challenging times and are an important consideration for those dealing with estates. If you believe your legal representation did not adequately address these matters, there is a possibility to reclaim any potential overpaid IHT within a reasonable time after the estate has been settled. Additionally, investors in exchange-traded funds and unit trusts should keep an eye out for more information on potential benefits for them in this weekend's Feet.
Fund managers reduce fees to attract new customers: Investors can consider investing in no-fee ETFs and hedge funds, as well as closed-end funds trading at discounts, during the market downturn
In the current market downturn, some fund managers are trying to attract new customers by eliminating or reducing fees on various types of funds, including ETFs and hedge funds. For instance, ETF Securities introduced 13 new no-fee funds, and Fidelity scrapped charges on its multi-asset strategic fund. Hedge funds, which are facing large redemptions, are also waiving fees to bring in new assets. This situation presents an opportunity for investors, especially those willing to take risks, to consider investing in these funds. The range of ETFs offers a broad choice, including those focused on alternative energy, nuclear, oil, and other commodities. Additionally, some closed-end funds are trading at discounts to their net asset value, providing another opportunity for investors. Advisors are recommending a look at funds like Aurora Russia, 3i Quoted Private Equity, and Graphite, which have strong balance sheets and are trading at significant discounts.
Investing and Insurance: Flexibility is Key: Invest: Consider low-cost or no-cost funds for flexibility. Insure: UnitedHealthcare offers flexible, budget-friendly coverage. Special: Save up to 40% on Mother's Day gifts at 1800flowers.com/acast. Happy Mother's Day!
Flexibility is key, whether it comes to investments or insurance coverage. For investors, there are low-cost and no-cost funds available that offer flexibility. For those looking for insurance, UnitedHealthcare Insurance Plans provide flexible budget-friendly coverage for medical, vision, dental, and more. These plans can be particularly useful for those between jobs, coming off their parents' plan, turning a side hustle into a full-time business, or even those who missed open enrollment. On a different note, Mother's Day is coming up, and it's a great time to give back to the amazing moms in our lives. 1800 flowers offers a wide range of handmade bouquets, sweet treats, gourmet food, and unique gifts that can be easily ordered and delivered fresh. For a limited time, you can save up to 40% off Mother's Day bestsellers at 1800flowers.com/acast. Don't wait, order today and save up to 40%! Lastly, the Feet Money Show team reminds listeners that they can email their views and questions to money@ft.com and read the latest news every weekday on their website, ft.com/forward/money. The team will be back next week with another financial lowdown. Until then, goodbye from me, Ellen, Steve, Charlene, and John Whiting from PricewaterhouseCoopers. Happy Mother's Day to all the moms out there!
