China is on pace to be the world’s best-performing major stock market in 2019, with the benchmark CSI 300 index up by a third this year as investors shrug off the country’s slowing economy and bruising trade war with the US. Bourses in Shanghai and Shenzhen have added $1.4tn in market capitalisation so far, taking the total value of onshore equities to about $6.8tn this year, buoyed by a revival of domestic investor confidence and continuing international inflows.

The 31% advance by the index of major Shanghai and Shenzhen-listed stocks outpaces the 8.5% rise by the UK’s FTSE 100, the climb of 11.5% by Japan’s Topix and the gain of 22.3% by the US S&P 500. Even after accounting for weakness in China’s renminbi, the country’s stock benchmark is up more than 28% this year in dollar terms. The resurgence follows a dismal 2018, when the CSI 300 fell 25%. That made China the worst-performing major stock market as equities were battered by the intensifying trade war and a deleveraging campaign by Beijing that tightened domestic liquidity. However, Caroline Yu Maurer, head of greater China equities at BNP Paribas Asset Management, said further upside for stocks was probably limited this year, thanks partly to the smaller scope of stimulus planned for the economy.

Based on the Annual CPI to September 2019 of 1.7% and legislation, the Lifetime Allowance for 2020-2021 would be calculated as £1,072,900. However, based on last year the Government chose to round up to the nearest £5,000 which would mean the Lifetime Allowance for 2020-2021 would be £1,075,000.

Regulations state that the previous Lifetime Allowance will be

(a) increased by the percentage increase in the index, and

(b) if the result is not a multiple of £100, rounded up to the nearest amount which is such a multiple.

The index referred to above is CPI.

The above figure is expected to be confirmed as part of the Budget and a statutory instrument passed to bring it into force.

The amount of money invested in VCTs has increased sharply over the past decade, increasing by 374% from £154m in the 2008/09 tax year to £731m in 2018/19.  VCTs are like investment trusts but only invest in small, young and typically unlisted companies. Although such companies are riskier and statistically more likely to go bust, investing in a VCT comes with a 30% income tax relief from the government and any returns are tax free. The trusts have performed well in recent years — the top 16 VCTs have all at least doubled investors’ money on a net asset value return basis over the last 10 years while 2018 had the second biggest VCT season on record, according to data from the AIC.

Many put the rise in popularity of VCTs down to the cuts to the pension allowances and restrictions on buy-to-let investing which has resulted in VCTs being one of the few tax efficient investment avenues left for wealthier investors. any investment into VCTs should be measured and proportionate to the investor’s overall portfolio, their appetite for risk and ability to tie their money up for the medium to longer term. The tax features on VCTs are attractive — though not as generous as a pension for a higher or additional rate taxpayer — but these exist for a reason. The tax perks are provided by the government to incentivise investors for the risks involved when investing in the types of fledgling enterprises that VCTs are focused on and that the policy makers wish to support.

IHE CITY watchdog has beefed up its scrutiny of the peer-to-peer lending sector in the wake of the Lendy collapse. The Financial Conduct Authority (FCA) has faced criticism over its supervision of Lendy, having authorised the P2P property development lender just 10 months before it  went into administration with a mountain of defaulted loans. Industry insiders have noted a change in the FCA’s attitude in recent months as its reputation has been hit by the Lendy scandal as well as the fallout over the collapse of P2P lender Collateral and minibond provider London Capital & Finance. Some experts think the regulatory tightening may deter some new entrants.

If you are a P2P lender moving from appointed representative to full authorisation or new to the market or existing, we are seeing increased scrutiny. The FCA doesn’t want to stifle innovation but it has a duty to ensure customers understand what they are investing in. With the new regulations set out in the June policy statement, there is a higher bar that needs to be achieved in terms of ongoing compliance. There may be some unintended consequences as it could deter new entrants but the industry is agreed that a tougher stance is broadly positive.

Savers and investors could be slapped with an extra £120billion in tax over five years under a major shake-up of capital gains tax touted by an influential think-tank. Capital gains tax on people’s wealth held in investments and the sale of second homes and buy-to-lets should be hiked to income tax levels, while the annual exempt allowance of £12,000 should be slashed to £1,000, it says. A tax raid on entrepreneurs was also outlined by the Institute for Public Policy Research, which could see those who have built up companies lose their special 10%.  The tax grab could be even greater if combined with a separate idea to scrap the current CGT exemption for people’s main properties – a new homeowner tax recently floated in a report commissioned by Labour.

Under the Just Tax plans published by the Institute for Public Policy Research today, a basic rate income tax payer would face a CGT hike from 10% on investments and 18% on home sales to 20% across the board. Higher or additional-rate taxpayers currently have CGT levied at 20% on their assets and 28% on properties which are not their main home. They would see their CGT rates soar to their income tax levels of 40% and 45% respectively, according to the report.

The TPR, the Pensions Regulator, has published a report examining the impact of automatic enrolment so far, along with future challenges.  A key finding was that more people in their twenties are now saving into their workplace pension due to the success of automatic enrolment. The report also shows a significant reduction in the gender gap in pension saving and an increase in savings among employees of small and micro businesses.

The report has been published annually since the start of automatic enrolment in 2012 and this is the final publication. Key highlights of the report include:

• Between the introduction of the reforms in 2012 and April 2018, the overall proportion of eligible staff saving into a pension increased from 55% to 87%.

• In the private sector, participation seen in 22 to 29-year olds increased from 24% in 2012 to 84% in 2018.

• In 2018 participation rates for both male and female eligible employees in the private sector was 85%.

The Ministry of Justice has abandoned the planned increase in probate fees for England and Wales.  It emerged that the Government had abandoned its controversial plans to replace flat fees of £155 or £215 for probate applications in England and Wales with a sliding scale running up to £6,000.  If you have an overwhelming feeling of dejà vu, you are not alone. The whole sorry saga is very similar to what happened in 2016/17 when the MoJ last proposed a substantial increase in probate fees. In that instance the first announcement was made in February 2016 and the climb down arrived 14 months later, as an election loomed into view.

On this occasion the timescale has been shorter, but more frustrating. The revised proposals came out in November and by early February had reached the point of a Statutory instrument that gained a 9-8 approval by the House of Commons Fourteenth Delegated Legislation Committee. From that stage everything went quiet, other than at probate offices which were swamped with applications leading to long delays. This weekend’s announcement may, like the 2017 abandonment, have more than a passing connection with an impending general election.

Last November’s explanatory memorandum suggested that the fee increases would yield £145m of additional income in 2019/20. Given the amount of increased spending the Government has promised in recent weeks, the Chancellor will hardly notice the loss.

Thousands of homeowners in their 50s used high-interest equity release loans last year to unlock cash from their properties. But experts have warned that interest payments could erode the total value of the properties leaving retirees unable to downsize and with no inheritance to pass onto children. The products are growing in popularity, but financial experts are concerned that people are accessing equity release too early and some are calling for the minimum age to be increased to 60 or higher.

Although borrowers are given a table to show the exact amounts involved, many will not attach importance to this. It is only when they have died, and the family come along to find the inheritance is much reduced, that complaints will occur. Advisers encourage family members and potential beneficiaries to be involved from the outset to avoid this time-bomb. With longer life expectancies, the time available for debts to increase is longer than it used to be so debts will be higher.