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Many homeowners in Wales ‘failing to protect their family’s financial futures’

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ALMOST a third of homeowners in Wales are failing to protect their family’s financial futures

25.01.2024 – Almost a third (32%) of adults in Wales have not made financial arrangements to protect their families when they die, new research has revealed.

A survey, by Lycetts Financial Services (LFS), also revealed that 32% do not understand how Inheritance Tax could affect their loved ones.

“Most people focus on earning enough to buy a home and accumulate other assets during their lifetime,” said Nick Straker, LFS Divisional Director. “They regard this as more important than considering the potential tax consequences further down the line.

“However, the start of a new year is the ideal time to take stock of your financial assets and circumstances, and plan for the future. It could be the most important resolution you ever make.”

Currently, the first £325,000 of an estate is not subject to Inheritance Tax under the “Nil Rate Band” (NRB). Where the family home is also passed to a direct descendant then the NRB is boosted by a further £175,000 to £500,000.

If a couple are married and pass assets each to other, then the NRB can be inherited so that it can be up to £1million on the last to die. However, the rise in property values in recent years has still seen more people’s assets exceed the threshold and be subject to a 40% tax rate.

Straker said: “A Potentially Exempt Transfer (PET) allows you to make financial gifts of unlimited value without there being an Inheritance Tax liability. The only proviso is that the individual making the gift must survive for the following seven years, and that the gift itself is potentially subject to Capital Gains Tax (CGT) on transfer.

“Before committing to PETs, consideration should be given to what your future financial needs may be. With life expectancy increasing, you need to consider how much income you will require to continue living the life you want to lead.

“The problem of giving assets away is that you don’t know how long you are going to live and there may also come a time when you need to pay for care and nursing home costs.

“The wisdom of making a PET when your children may be young, impulsive and have not yet established themselves, is another important consideration. Generally, people are getting married later and having children later, so planning becomes more difficult.

“Life Insurance, however, is a good short term measure. It provides protection for loved ones if something were to happen unexpectedly, and is relatively inexpensive. When your children are likely to be settled and more mature, and you have a better idea of your financial needs going forward, a PET might then be explored or other IHT plans can be considered.”

Straker also reinforced the importance of building up a pension fund, which can offer further financial support for a spouse and family.

“Pensions are highly tax efficient and are not affected by Inheritance Tax. You are never too young to start saving for your pension and should aim to build as big a fund as possible.

“My final piece of advice is to seek guidance from an experienced financial adviser. An audit of all assets is a good starting point to plan for the future.

“A YouGov survey revealed that that only 31 per cent of those who made resolutions in 2023 kept them all, but arranging your finances is one you should definitely stick to.”

 

Business

Call for county to push for review of 182-day self-catering rules

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A CALL for Pembrokeshire to again push Welsh Government for a review of the contentious 182-day rule for self-catering holiday properties in order to avoid paying second homes tax is to be heard next week.

Self-catering businesses not meeting the 182-day criteria end up paying the second homes council tax premium, currently 125 per cent on top of the general rate, in the county, along with similar premiums for the other elements of the overall bill such as the police precept.

In a submitted question to be heard at the July 16 meeting of Pembrokeshire County Council, Cllr Huw Murphy asks: “Most councillors are aware that much of Pembrokeshire relies on tourism and hospitality for its economic success. A key element of a successful Pembrokeshire tourism industry is the self-catering sector.

“Plaid Cymru in its manifesto made several pledges for its first 100 days in office, one under the headline of ‘Unleashing Wales Economic Potential’ which made no specific mention of the 182 letting day rule that was introduced by the previous Labour Government under their co-operation agreement with Plaid Cymru.

“However, Plaid Cymru prior to Senedd elections in May 2026, stated that they would review the 182-day threshold which has been a disaster for many self-catering businesses, many of whom are in rural and coastal communities. I have raised this matter on several occasions since being elected.

“Through speaking to those operating in the self-catering sector there is a clear need to reduce the 182-day threshold. I should point out that in the past I have suggested it be reduced to 140 days and still hold that view.

“Over 50 days have now passed since the Senedd Elections, but we have not heard any details of a review of the 182-day letting rule. Therefore, will the Leader write off to the First Minister outlining the concerns of many Pembrokeshire county councillors with regards to the 182 days letting rule and ask for a reply setting out when Welsh Government intend to commence a review of this policy, which is much needed?”

Back in 2023, Cllr Murphy submitted an unsuccessful notice of motion to full council calling for the 182-day rule in Pembrokeshire to be lowered, proposing a figure of 140 days.

At the time of the 2023 call it was instead agreed to review the situation and for the council to raise its concerns to Welsh Government.

 

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Pembrokeshire Pet Bakery celebrates opening of second shop in Narberth

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A LOCAL pet treat business has celebrated a major milestone after opening its second shop on Narberth High Street.

The Pembrokeshire Pet Bakery welcomed customers through the doors of its new Narberth store on Saturday, marking the latest stage in the growth of the independent business founded by Ali and Kelly.

Despite the hot weather, the opening attracted a strong turnout, with customers visiting to explore the bakery’s range of nutritious and colourful treats for dogs, cats and other much-loved pets.

The new premises joins the company’s established Haverfordwest store, allowing the team to serve customers from two Pembrokeshire town centres.

Ali and Kelly said the opening had been the result of years of hard work, determination and belief in their business.

They said: “What started as a big dream is now a reality, and seeing everyone flock through the doors on Saturday, despite the heat, has been one of our proudest moments to date.

“We are still pinching ourselves, to be honest, and it probably won’t sink in for a while yet.”

The pair also thanked residents and neighbouring businesses for the warm welcome they had received since arriving in Narberth.

They added: “The response and support from our friends, followers, customers and visitors has been absolutely incredible.

“Thank you doesn’t seem to cut it, but thank you all so very much. We are a little overwhelmed.”

The Pembrokeshire Pet Bakery specialises in fun and nutritious handmade treats, with products available for a range of animals including dogs, cats, rabbits, horses, birds and small pets.

The owners said they were now looking forward to building on the success of the opening weekend and continuing to serve customers in both Narberth and Haverfordwest.

The new shop adds another independent name to Narberth’s busy High Street, which is widely known for its mix of locally owned shops, cafés and specialist businesses.

Picture caption: Ali and Kelly outside the new Pembrokeshire Pet Bakery shop on Narberth High Street.

 

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Business

Iconic Tenby music shop Dales opens new branch in Carmarthen

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ONE of west Wales’ most recognisable independent music retailers has expanded into Carmarthen with the opening of a brand-new Dales Music Store.

The family-run business, which first opened in Tenby in 1947, has become a favourite destination for generations of music lovers, known for its extensive range of vinyl records, musical instruments, guitars, music accessories and merchandise.

Now, after almost 80 years in business, Dales has opened a second branch on Blue Street in Carmarthen, bringing its distinctive yellow-and-blue branding and passion for music to the county town.

The new store offers a wide selection of new and pre-owned vinyl, guitars, musical instruments, equipment, accessories, gifts and official band merchandise, catering for everyone from experienced musicians to collectors and casual music fans.

The expansion represents a significant milestone for the long-established business, which has evolved from its roots as a piano retailer into one of Wales’ best-known independent music stores while remaining family owned.

Owners say they are excited to welcome customers through the doors of the new Carmarthen branch and hope it will become a hub for the local music community, offering the same friendly service and specialist knowledge that has made the Tenby store a trusted name for decades.

The arrival of Dales also provides a welcome boost to Carmarthen’s independent retail scene, giving shoppers another reason to visit the town centre and supporting the area’s growing reputation as a destination for independent businesses.

Photo caption: The Dales team outside the new Carmarthen store on Blue Street, marking the opening of the iconic Tenby music retailer’s second branch.

 

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