VAT on school fees from January
Parents educating their children in the independent sector can expect a sharp rise in school fees from 1 January 2025, when the Government has confirmed that it will start imposing VAT on these fees. This will be imposed at the standard rate of 20%. Parents can’t avoid the increase by paying the full year’s fees early, as VAT will be applied to all payments for the January term made from the end of July this year.
The Financial Conduct Authority does not regulate tax advice. Tax treatment varies according to individual circumstances and is subject to change.
NS&I certificates
Lower inflation has made NS&I’s popular Index-linked Savings Certificates less attractive. Holders should weigh up options at maturity, rather than letting them roll-over into a new term. Around 300,000 people hold these tax-free accounts, which pay an inflation-linked return for two, three or five years. Returns have been high in recent years, but with inflation expected to linger around the 2% mark there are now better paying accounts elsewhere.
Sterling’s high
Sterling has been one of the best-performing currencies in 2024; good news for holidaymakers who will have found their money going further overseas this summer. But a strong pound does not always help investors holding overseas funds and assets. This is particularly true for Japan investors, with the Yen down against the pound by about 6% this year, negating some of the gains seen in Japanese stock market for UK investors.
The value of your investment and any income from it can go down as well as up and you may not get back the full amount you invested.
Past performance is not a reliable indicator of future performance.
