Friday, 19 September 2014
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HiFX - international money transfers

A brief update today, despite a reasonable amount of data (covered below) most of this has been largely ignored due to the Scottish referendum.

The data does seem to be rather inconsequential until the market hears on the referendum result which is due Thursday / Friday.
Latest polls from 3 survey organisations saw a slim lead for ‘No’ at 52% against ‘Yes’ at 48%, excluding the ‘don’t know’ results. Most polls have been very close and this one was no different proving this could go right down to the wire on the day.

This is a real ‘something or nothing’ situation; if we see a no vote then there could be very little change and if we see a yes vote then anything could happen, there is no precedent for this and it is too even to judge.

Please contact us for more information and advice on 01753 752 740 or email

Weekly Financial Update

The focus for the Pound this week will be Thursdays Scottish Independence vote. A yes vote will damage Sterling quite a bit it seems. We have read reports that the Pound could fall 10pc if the Scottish public votes to go it alone. A No vote will probably keep Sterling fairly well bid.

Scottish referendum - What are the implications on the pound?On the 18th September Scotland will vote on whether to remain part of the UK. The ramifications of the vote could have a significant effect on the value of the pound with some analysts predicting anywhere between a 5% to 15% devaluation if the 'YES' vote win and Scotland leaves the Union.

This has been reinforced in the past few days with implied volatility levels on GBP doubling from 4.5% to over 11%.

Premier FXFor those of you who receive your pensions, whether private or state you could find that the amount you receive each month differs. When you receive your pension directly from the UK to your Euro account the bank will use a spot rate. So if you are living to a budget this can leave you short from month to month and over the year this can add up. What the pension companies don’t offer you is the chance to fix the exchange rate, this can take out the uncertainty of the amount you receive each month.

Portugal Unable To Rule Out Tax Hikes, Says FitchAn article by credit ratings agency Fitch Ratings concludes that Portugal is on track to hit its fiscal targets this year, following the constitutional court's approval of expenditure-related proposals, but warns about potential tax increases in future.

On 14th August 2014, the court said that temporary pay cuts for some public sector workers proposed for this year and next year are constitutionally acceptable, but that they should not be extended beyond 2015. It said a levy on some public sector pensions would be unacceptable.

QROPS reviewWhen choosing to transfer a pension away from the UK into a QROPS one of the key things to consider is which jurisdiction to place your pension.

One the unique benefits of a QROPS is that it does not have to be situated in the place you happen to be living at the time. Rather, transferring your UK pension into a QROPS enables you to choose the jurisdiction that will benefit you most now, in the future and in retirement.

Consultation launched to restrict UK personal allowances for non-residentsUnder current rules, UK nationals are entitled to UK Personal Allowances wherever they are resident. The UK personal allowance is also granted to many non-residents who are not UK nationals, especially where the non-residents’ own country has a tax treaty with the UK.

Most other countries restrict entitlement to their own personal allowances. This means that the UK ends up collecting less tax on the income of non-residents than a comparable jurisdiction.

bankofenglandFollowing a comprehensive survey of Shelter Offshore readers, we discover the ways British expats like to manage their money, and why you are allowed to keep your British bank account open if you want to.

The majority of expatriates still prefer to repatriate their cash when they’re living abroad, according to our recent survey of Shelter Offshore readers.  No matter where Britons move to abroad, and no matter how sophisticated the banking opportunities are in their new nation or offshore, most Brits still prefer to send at least some of their money home.