RICHARD BURTON AND HMRC

The actor Richard Burton who was born in Wales had lived in America for 27 years and died in 1984 at his Alpine retreat near Geneva, where he was buried.

 At death, was he domiciled in Wales, America or Switzerland?

Burton had apparently wanted to have Swiss domicile for tax purposes but Her Majesty’s revenue and customs deemed that he was still UK domiciled.

Although he had not lived in the UK for many years, had no assets or property there and was buried in Switzerland, during his first marriage to Elizabeth Taylor, Burton had bought burial plots in Pontrhydyfen, Wales in the cemetery where his parents are buried. The Revenue consequently deemed he had not shed his domicile of origin and his worldwide assets were taxed accordingly with the Revenue raking in £2.4 million in inheritance tax!

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NEGATIVES

How many wealthy people do you know who got there by investing in savings accounts? I rest my case

Robert G. Allen

There is a more sinister undertone to this quote. This being that we are living in unprecedented times and current/savings accounts are 'still' offering near to zero interest rates on the balance of accounts. 

Whilst everyone needs a current and savings account to ensure that they have enough easily available money in the event of any emergency, this same account is the last place that you would want to be hoarding cash reserves with the hope that they will hold their purchasing power in the future.

UK inflation is an example of what will ultimately happen to most Western societies.

Interest rates in the UK are presently around 0.25% to 1% on a standard current account and maybe a little higher on a savings account.  

If the current UK inflation rate, as measured by the Retail prices Index is 2.8%, (in reality it is more likely 4%), then holding money in a current account is the same as having money taken away from you each year.

The math is simple:

Account Balance:    £100,000

Current account:     1%

Interest earned:       £1000pa

Inflation rate:          2.8%

                                  -£2800pa

Total return:           -£1800pa

I don't know about you, but if I were losing £1800 per annum as a result of bank and central bank collaboration I would not be very happy with that outcome.

If you haven't started thinking about the impact of this because you live in Italy,  then use the UK as a shining example of what is  just around the corner.  

Get ahead of the game and plan for your future or the future of your loved ones.

You can contact me on gareth.horsfall@spectrum-ifa.com or on 3336492356 if you have any questions.