The UK general election has been the biggest news factor in the financial markets this past week. The result, although sold as unexpected, probably wasn’t that much of a surprise considering the way other elections have gone in the UK.

However, it naturally added to volatility in the market. The Pound had been steadily falling, so this event was expected to make it move lower.

In another political shock, especially to pollsters' credibility, the Conservative Party have failed to secure an outright majority. However, assuming the 10 Democratic Unionist Party MPs side with the Conservatives, and Sein Fein do not take up their seats, the Tories should be able to form a Government.

There is plenty of rumour that Theresa May will have to step aside, but it is not clear who would succeed her – Amber Rudd only scraped by with a victory in her constituency. A leadership vacuum and a reduced mandate add new clouds of uncertainty to the economic landscape.

The UK tax year that started on 6th April introduced a new Residential Nil Rate Band for inheritance tax. Changes to the domicile regime were also meant to come into effect then, but these have now been put on hold until after the June General Election.

Liability to UK inheritance tax is based on domicile, not residence. If you are a UK domicile, or are deemed domiciled under HM Revenue & Customs rules, your worldwide estate above £325,000 is liable to tax at 40%. Assets in the UK are liable regardless of domicile.

During times of economic or market uncertainty, share prices will take a hit. Although it is likely to be uncomfortable, there is no need for investors to panic. In fact, these times can offer an opportunity to review your investment portfolio to ensure it is positioned to weather any "storms" that may lie ahead.

There are roughly 60,000 Brits living in Portugal and of those, most pensioners are found in the coastal Algarve region. The popularity of the resort and the presence of a thriving expat community mean that English is spoken almost everywhere, making Portugal something close to a home from home, but with more sunshine.

However, unlike healthcare provision, the UK Government does not have any reciprocal arrangements to cover overseas residential care for Brits living abroad. A study by LaingBuisson found that the average cost of residential care in the UK is around £2,400 per month, with more specialist nursing care around £3,100. Costs in Portugal range from £2,200 to £4,400 per month.

As a resident foreigner, you may receive letters from the Tax Office (“AT”). Just as happens with many Portuguese citizens, you will be baffled by the encrypted content, written in unadulterated “bureaucratese”. The letter may come with a “number” that might seem to be a tax demand. It may also contain a “deadline”, defining when you are supposed to react.
The first order of business is: “Don’t panic.” Scan the letter and send it to your tax accountants. They will know how to interpret the content. If there is a problem, they can assist you. While taxes will not go away on their own, with proper assistance, you need only to pay what is legally due.

Greed is one of the seven deadly sins for a reason. Money controls a great deal how we live our lives. Living paycheck to paycheck leaves us feeling stressed, while financial abundance allows us to live more freely. The news is always full of stories and specials on money. How to save it, invest it, and make more of it. It should come to no surprise that financial independence is one of the most desired goals for most Americans.

Here’s the truth that nobody wants to hear -- Almost everybody can achieve financial independence. It doesn’t come easily though. It starts with one step that most don’t want to do. It starts with living below your means.

It was greatly anticipated and there was much speculation that the Portuguese Socialist Government would introduce an Inheritance Tax. Although this did not materialise, we still believe that this could be introduced in the future. What they did introduce was a Wealth Tax which we believe will be extended in coming years.