Independent Advice Ltd. – Plan | Save | Grow | Spend | Gift

20/10/2026

What am I thinking?

Hasn’t the year flown by so far? We are already mid way through October, well in to “The Spooky Season” and that leaves less than 10 weeks left until Christmas!

Hunting Season

Half way through October marks a special time in the seasonal investment returns calendar. These next two quarters on average bring around double the return we receive over the previous two quarters. As you know October to March last year brought a far higher return than we could have rightly expected and April to September has been below average at best. Holding more of our portfolios in cash throughout the Summer when return expectations were low has been a comfort to many clients. Yesterday was the 39th anniversary of Black Monday. The FTSE 100 fell 10.8% on the Monday followed by 12.2% on the Tuesday. I had only been in the industry since February ’87 so it was a rude awakening indeed. There was much talk of a similar market outcome yesterday, but we were spared. Perhaps the 40th anniversary next year is the one to look out for. Celebrating 40 years in this profession next February 3rd will be pretty special for me.

Political Season

Along with the opportunities that this coming period of the calendar brings, we receive another tailwind from the US Presidential cycle. This third year is on average the strongest of the four year cycle. So a couple of intersecting good investment periods on the doorstep; What’s not to like?

21/09/202621/09/2026

Capitalism

“The problem with socialism is that you eventually run out of other people’s money” – Margaret Thatcher

We have yet another budget looming over us, scheduled for 28th October, unless local boy Andy calls a General Election beforehand. So with that in mind I want to announce my undying dedication to capitalism and my complete opposition to the theory of socialism.

The Early Years

I have worked hard since I was 15 to better my lot. I’ve collected driving range golf balls, worked weekend shifts at a petrol station and out of term jobs through 3 years of university in a record store. I’ve even dug ponds. I am authentic working class, with a blue collar, shop-steward father and a shorthand typist mother. The families wealth today has been created by turning up everyday for almost 50 years so far, increasing my business and invest knowledge and taking risks. I’ve paid higher rates of tax along the way and have never been in a position where income tax was avoidable by receiving undeclared cash. UK financial services regulations ensure I cannot handle cash.

Creeping Unfairness

I continue to pay my UK dues. I’ve contributed to HMRC more than most. I’ve been proud to do so. I know many of our clients have similar back stories. However the UK is being turned into a country where working hard is becoming a mugs game. Those who have saved hard and retired with independent means are progressively being unfairly targeted. I wrote about the announced changes to Individual Savings Accounts in my last blog.

Capitalism in the UK is under threat.

12/08/202612/08/2026

Paying Dividends

If you don’t invest in a Stocks and Shares ISA with us currently, you are free to close this browser window. Go read something else. Nothing that follows is applicable to you. However if you own an ISA and you are still reading this, prepare to frown and curse.

When is a tax not a tax?

When a share is sold the money received has to go somewhere. For an ISA account, It remains as bank cash within the ISA. When we are ready to re-deploy that cash into another share the cash balance reduces as the share is purchased. This is a continual process. In the meantime interest is earned on the cash currently at a healthy 3.75%.

We have all been sold the concept of an ISA being free of dividend tax, capital gains tax and tax on our earned interest. In fact “Tax-Free!” is the phrase we are used to and read everywhere. Well not any longer. From April 2027 the interest received on the cash will be subject to a charge – not a tax, because ISAs are still tax-free aren’t they? Always have been always will be. The charge looks like a 22% interest tax being levied – but it’s a total coincidence that the tax on interest is also set at 22% for a basic rate tax-payer. Thankfully the charge does not climb to 42% for higher rate tax-payers, like tax on interest earned does. Our interest will be ~~stolen~~ taken at source to avoid pesky tax returns for everybody plus the government gets its greasy mitts on those ill-gotten gains immediately.

I think the cabinet reckons what we don’t see, we won’t miss. But those in the corridors of power are wrong. We never forget.

Houston? We Have A Problem

We use cash as a balancer across all portfolios. You cannot have a cautious or balanced attitude to investment risk and still invest 100% in equities. You need some safe stuff too. Currently nothing else is anything like as safe as good old cash giving a risk free return of daily interest.