Products – H.J.Scott & Co

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.

11/11/202405/01/2025

Slack News Fortnight

Obviously It’s been anything but a slack fortnight at the office. With 5 major events occurring, which have repercussions for investors, I thought it would be best to wait until all 5 unknowns were in before I commented. Individually, each of these domestic and international geo-political events will shape how we manage our investment portfolios and how we help clients plan their finances, both now and into the future.

Plan | Save | Grow | Spend | Gift | Pass

But firstly I would like to extend our condolences to the families of the two clients we suddenly lost this week. After almost 38 years building long-term client relationships it’s inevitable that some must come to an end. Currently we are helping the families of 8 of our clients who have passed away in recent months.

Hopefully our previous financial planning and long-term client relationships will help at this difficult time.

The 5 known unknowns

“There are known knowns, things we know that we know; and there are known unknowns, things that we know we don’t know. But there are also unknown unknowns, things we do not know we don’t know.”

Donald Rumsfeld – United States Secretary of Defense.

Two weeks ago we knew there was a UK budget to come, a new Conservative leader to be chosen, a new President of the US, a further interest rate decision to be made in the US and also an interest rate decision due from the Bank of England. All those changes would move both domestic and global shares in some way. Some outcomes were expected, some were binary decisions which were too close to call and some were just plain unexpected.