The observation from Nigel Green, founder and chief executive of deVere Group, which has $12bn under advisement, comes as it is revealed that the UK economy suffered its biggest drop on record between April and June as coronavirus lockdown measures pushed the country officially into recession. The economy contracted by 20.4% compared with the first three months of the year. Mr Green notes: “As was expected, Britain is now officially in recession. It’s the deepest recession in UK history and the deepest of any G7 country. The chief executive underlined that the UK and global investors will be becoming increasingly nervous of this worrying situation and can be expected to take precautionary measures to insulate themselves against a potential fall in the value of UK-based financial assets. Mr. Green said: The deVere CEO goes on to add that the confirmation of a recession “may be a good excuse to start that much-needed rebalancing in favour of global stocks, bonds, currencies and perhaps property.” The weak economy also further boosts the chances of tax hikes and relief cuts in the UK November Budget. “It is highly likely taxes will rise and reliefs be cut. Possible targets for hikes could include income tax for higher earners, capital gains tax, inheritance tax, and VAT. “In addition, new wealth taxes may be brought in, which was something the Prime Minister was considering before the pandemic hit,” notes Mr Green. These potential changes in the Budget can be expected to prompt those overseas with financial ties to the country, to look into the international options available to them. He concludes: “Now could be a good time to revise your financial planning strategies to ensure you’re best-positioned to be able to grow and protect your wealth.”
