My wife, Chris, and I were having one of those meandering conversations recently— when she said something that’s been sitting with me ever since: “Do you think we’re in a trust recession?” She’s right, and once you start looking for it, you can’t stop seeing it.

Politicians treating inconvenient facts as just another opinion to argue with. Long-standing science backed issues dismissed despite the evidence of one climate shock after another. Deadly measles cases back to record levels just as trust in real data and expertise has quietly worn away.

Algorithms that don’t show you the truth, but more of whatever you already believe, until “the world is flat” starts to feel like a reasonable position to the person living inside that feed. None of this is exactly hidden any more. It’s just out in the open, and it’s exhausting.

Because this “trust recession” isn’t stopping at politics and social media. It’s already sitting inside financial services, quietly, and I’ve watched it play out over the years with clients — smart, successful, careful people who trusted very well-known financial institutions simply because they were well known, and found out later that “well known” isn’t the same as “on your side.”

So this isn’t really a piece about who you trust with your money. It’s about who you trust with your future.

Trust isn’t just a feeling, it’s an equation

In 2000, in a book called The Trusted Advisor, Charles H. Green and his co-authors put a number on something that usually just feels like instinct. Their formula, still the cornerstone of Trusted Advisor Associates’ work is this:

• Credibility: can I be believed — do I actually know what I’m talking about?

• Reliability: do I do what I say I’ll do, when I say I’ll do it?

• Intimacy: are you comfortable being honest with me, even about the things you don’t tell anyone else?

• Self-orientation — the one that quietly challenges the other three — is whether I’m doing this for you, or for me.

It’s worth taking that last one seriously: the largest meta-analysis of human trust ever conducted — more than 300 studies, pulled together in 2023 — found transparency to be one of the strongest single predictors of whether someone is seen as trustworthy at all.

Credibility: the one where questions matter more than answers

Anyone can claim to be credible — that’s exactly the trouble with a trust recession, self-declared expertise is cheap.

What actually proves it is different: whether you catch the thing nobody thought to ask about. A couple I was introduced to came to me with what looked like a straightforward question about selling a UK property one of them had owned for decades. Buried in the conversation was a detail neither thought was relevant: they’d married in France the year before the sale — which changed which country had the right to tax it, and by how much, eventually worth a six-figure sum in tax savings. Nobody asked me that question; I saw the connection because I’ve spent over twenty years looking out for exactly this kind of thing. That’s not something you can prompt your way into with AI.

Credibility isn’t just about any one story like this — it’s whether that pattern holds up, case after case, including the times I tell you plainly that I don’t know something and need to go and find out.

Reliability is the admin done properly and on time: fund switches processed without you having to chase them, withdrawal requests that don’t sit in a drawer, anti-money-laundering checks completed without three reminder emails. No drama, just doing the job properly, every time — and it’s precisely where I’m starting to use things like AI to try and stay on top of an ever-growing to-do list, rather than pretending it doesn’t grow.

What this technology hasn’t reached, and I don’t think it will any time soon, is the human part: knowing that a French wedding mattered to a British tax bill, or simply being the one who picks up the phone.

Intimacy: the one where you tell me things you don’t tell anyone else

I am flattered that clients continue to share things with me — plans, worries, numbers — some they wouldn’t necessarily volunteer to anyone else. I hold to an old adage here: seek first to understand before being understood, a principle I stand by completely. There’s no point building you a plan without the whole picture, and getting there depends on you trusting me enough to hand it over.

It’s also not only about how comfortable someone feels with me personally — it’s whether the systems gathering that information can be trusted too. I use tools like Cash Calc partly because of how seriously they take data security and GDPR, not just because they’re convenient. Trustworthy channels matter as much as a trustworthy person.

What matters is whether it’s transparent and fair on both sides: an explicit commission you’ve signed for, and a fixed annual charge you’ve agreed to, not something buried in small print, or hidden entirely. It’s why we changed our business model to explicit upfront commissions and a fixed annual charge instead: if your pot grows, my income grows with it, and if it doesn’t, so does the pressure on me to fix that. That’s alignment we’re both genuinely invested in, together.

Here’s the part worth sitting with, though: if you don’t actually know how your adviser is paid, that isn’t a neutral score in this equation. It’s close to the worst score. Opacity is exactly where self-interest hides. The client who’s never had a conversation about charges with their adviser or bank hasn’t found a low self-orientation ‘score’ — they’ve simply never been shown the real one.

How it all adds up

None of this means size, track record or reputation don’t matter — they do. Assets under management, years of experience, qualifications, regulatory status: all real, all worth checking. The mistake is treating any one of them as a shortcut — proof enough on its own that you don’t need to look any further. A recognisable name and a marble lobby are just one more thing to weigh, alongside credibility, reliability, intimacy and self-orientation, not a replacement for discounting them.

Here’s the test I actually use, on myself as much as anyone: would I let my grandma be advised by these people? Not are they big enough, not do they look the part — would I trust them with someone I love, and be comfortable with whatever came of it?

That’s not a size question. It’s a transparency question. The institutions and advisers worth your trust are the ones happy to have every part of that looked at closely. The ones that aren’t tend to hide behind the brand instead.

If you already work with me, I want to know where you’d score me, including anywhere I’m falling short. If you’re not yet a client, use it to think about whoever currently holds that role in your life.

If the answer comes back high, a referral to someone I might be able to help, is always the best compliment you can pay me — though I’d rather earn it than ask for it outright. If it comes back low, I’d rather hear that directly too.

Either way, get in touch — that’s how this actually works.

It’s September so it is back to school and back to work in France. It has been a very long and hot summer and for many people, it hasn’t been very restful. Many of you would have seen the news about were the major wildfires along the south-west coast which forced numerous residents to evacuate due to the smoke.

Fortunately, our town wasn’t evacuated, though the neighbouring town was not so lucky. Whilst most people have been able to return to their homes, the long process of rebuilding has only just begun for those who tragically lost their properties.

Over the summer, you should have received your tax statements either by post or on the impots.gouv.fr website. If you have less tax to pay than last year, this amount should have already been reimbursed to you in August. If, however, you have more tax to pay then your monthly payments (those that are made around the middle of the month) will increase as from the middle of September and any additional tax will be taken over four equal instalments at the end of September, October, November and December. If you don’t pay your tax automatically through your bank, you must pay the amount owed by 15th September. If you owe less than €300 of excess tax and you pay by direct debit, the amount will be taken on 25th September.

On 25th August 2026 the Prudential Assurance Company (PAC) board reviewed the Prufund Expected Growth Rates (EGR) as part of the Prufund regular quarterly review. The Prufund aims to grow their customers’ investments over the medium to long term (5 to 10 years) whilst buffering investors against short-term market volatility, using the unique established smoothing process.The Expected Growth Rate (EGR), the forward-looking element of the Prufund smoothing mechanism, remains unchanged this quarter. As regards the Unit Price Adjustment (UPA), the backward-looking part of the Prufund smoothing process, which is formulaic and non-discretionary, there was an upward UPA for the Prufund Cautious USD Dollar fund of 2.04%. Prufund is designed for the delivery of consistent returns over the medium to long term and although Prufund may lag behind a rapidly rising market, it protects in a falling market, demonstrating the consistency and robustness of Prufund in an ever more volatile world.

August’s performance reinforces the timeless investment wisdom: “time in the market” consistently beats “timing the market,” and maintaining a well-diversified portfolio remains the most effective strategy for managing volatility.

On 1st August the interest rates on the Livret A and LDDS savings accounts increased slightly from 1.5% to 1.7% to take into account the increase in inflation. The LEP account rate—available to households meeting specific income criteria – remains at 2.5%.

If you are planning energy-efficiency improvements for your property and wish to access government funding, you will need to consult the updated MaPrimeRénov’ guidelines, as the list of qualifying renovations was recently revised.

As we head into the final quarter of the year, it is an ideal time to consider your existing financial arrangements and your objectives for the months ahead. If you have any financial matters you would like to explore, please feel free to get in touch to arrange a review of your personal situation.

If you’ve been paying attention to investment markets over the last couple of years, you’ll already know that AI is one of the most significant forces reshaping the global economy. The returns from semiconductor companies, cloud infrastructure, and the businesses building and running AI systems have been remarkable — and the broader implications are only just beginning to play out.

I was in London recently for an industry conference, and the keynote session on AI was arguably the most discussed moment of the whole event. Not because the topic was new to anyone in the room — we’ve all been watching this unfold — but because of how quickly it’s now moving inside financial planning firms specifically. The framing that stuck with me: this isn’t just another software upgrade. It’s closer to an industrial revolution. The shift from paper-based advice to digital systems in the 1990s took a decade. What’s happening now is moving at a fraction of that pace.

I came away thinking a lot about what this means for how I work — and for you.

“Technology won’t replace advisers — but advisers who use technology will replace those who don’t.“

Here’s a simple example. If you ask ChatGPT, “I need to go to the car wash — it’s 200 metres away. Should I walk or drive?”, it will very sensibly tell you to walk. It’s close, after all. What it misses, of course, is that the entire point of going to the car wash is to wash the car. That’s not a failure of intelligence. It’s a failure of context, of understanding the bigger picture, of asking the right question in the first place.

That’s what human advisers do. Not just answer the question in front of us — but understand why you’re asking it, what’s really going on underneath it, and what the right question actually is.

Here’s what it actually changes — and what it doesn’t.

One of the most practical shifts is in how I handle meeting notes. If we speak by video call, I record and transcribe the conversation using a secure, multi-factor authenticated application. This means I can be fully present and listening, rather than split between the conversation and a notepad. Afterwards, the transcription lets me extract the key points accurately — compliance notes, commitments I’ve made to you, things you’ve agreed to send me, follow-up tasks from switches, withdrawals, or other issues we’ve discussed. That all goes into my task management system so nothing gets missed or delayed. The recording itself is deleted from the app immediately once I’ve taken what I need.

If we’re meeting face to face, I’ll simply ask your permission to record it, in the same way as for a video meeting and for the same reasons — in my experience, most people are very comfortable with it once they understand why.

If you’re one of my existing clients and not already using the CashCalc Client Portal for document sharing and secure messaging, do get in touch and I’ll set you up. It’s a much safer option than email for anything sensitive, and is straightforward to use. See the short explainer video below if you haven’t seen it. And if you’ve ever wanted to book a call without the back-and-forth of scheduling, Calendly has been running quietly in the background for a while now — it’s saved all of us rather a lot of emails.

At Spectrum, we’ve updated our processes accordingly. Any withdrawal or surrender request that arrives by email, I will always speak to you directly — by video call — before anything moves forward. No exceptions. In some cases, particularly if a new bank account is involved, I will also ask you to show me a bank statement, either by holding it up to the camera or screen-sharing. It sounds simple, because it is — but that kind of direct human verification is exactly what stops fraud in its tracks.

On that note: AI can now be used to create convincing video overlays in real time. If you ever receive a video call from someone claiming to be me and something feels off, ask them to wave their hand in front of their face. It breaks the overlay. I’ll always do it happily. If someone won’t — end the call.

Looking forward with judgement

“42” but what’s the question?

In Douglas Adams’ The Hitchhiker’s Guide to the Galaxy, a vast supercomputer called Deep Thought is asked to find the answer to ‘life, the universe, and everything’. After millions of years of calculation, it delivers its answer: 42.

The problem, it turns out, is that nobody had thought to ask for the question.

They then had to build another supercomputer — the Earth — just to work out what the question was supposed to be.

In a roundabout way, this is a fairly good description of where we are with AI right now.

One of my AI bootcamp coaches put it well recently: we’re moving from a knowledge economy to a judgement economy. Every answer is now theoretically available to everyone. What remains scarce — and genuinely valuable — is the ability to know which question to ask, to understand context, to see the bigger picture, and to make a call when the situation doesn’t fit neatly into any formula.

That’s what twenty-plus years of working with clients in France, navigating genuinely complex financial and tax environments, actually builds. AI will help me do more with that experience.

It won’t replace me.

I find this genuinely exciting. I hope you do too, and if you don’t I am here to help.

June marks the official beginning of summer – although the heatwave at the end of May gave us an early taste of the season. For French businesses, this is the final month to conclude key transactions and projects before the traditional slowdown in July and August. For French resident tax payers there are also a few matters to address before the summer really starts.

Most people will have by now submitted their tax return – those living in departments numbered over 55 have until 4th June and those who have engaged an accountant to do their tax returns will also be granted additional time to file. The tax statements will be available online from 24th to 31st July. For those receiving paper statements, these will arrive by post between 23rd July and 28th August.

The 15th June is the deadline for trustees of trusts where a trustee, settlor or beneficiary is fiscally resident in France, to complete the declaration 2181-TRUST2, declaring the value of the assets in the trust as at 1st January. The issue of trusts in France is one I’m often asked about. Are trust illegal in France? No. Trusts do not exist under French law, however French case law (jurisprudence) has long accepted that Trusts set up in other countries can have effect in France provided that they were created in accordance with the law of the country in which they were created, and that they do not contain any provisions which are contrary to French public policy (ordre public) especially as regards forced heirship (reserve héreditaire) – Paris Court of Appeal decision, 10th January 1970, Époux Courtois et autres consorts de Ganay. If you are the beneficiary, trustee or settlor of a Trust and this is the first time you have heard about the requirement to declare the trust, you need to first declare the existence of the trust using the form 2181-TRUST1 as well as the value as at 1st January.

Property owners have until 30th June to update the information on the buildings on their property and the occupants of those buildings on the impots.gouv.fr website if their situation has changed between 2nd January 2025 and 1st January 2026. If your property portfolio remains unchanged since the last declaration, no action is required. Only one declaration is necessary for a building and adjacent structures (e.g. garages, swimming pools etc) if they are occupied by the same person(s). Furthermore, as the review of rental values has been pushed back 3 years, landlords do not have to declare the amount of their rent received, unless they choose to do so.

On 26th May 2026, the Prudential Assurance Company (PAC) Board conducted its quarterly review of the Prufund Expected Growth Rates (EGR). The EGRs—which represent the forward-looking component of Prufund’s unique smoothing mechanism—remain unchanged for this quarter. Additionally, there were no Unit Price Adjustments (UPAs). The UPA is the backward-looking element of the smoothing mechanism; it is entirely formulaic, non-discretionary, and designed to protect investors from short-term market volatility.

After reports that a deal had been reached last week, oil prices dropped to $92 but have now risen to $96.28 the barrel on 1st June.

While we do not understate the human and political seriousness of these events, such conflicts are a regrettably familiar feature of the global landscape. Historically, long-term investors have been well-served by avoiding overreacting to short-term geopolitical shocks.

Inflation data published last week confirms that energy price pressures are increasingly filtering through to core economies. May data revealed inflation hitting 2.8% in France, 3.3% in Italy, and 3.6% in Spain. The European Central Bank (ECB) is expected to raise interest rates at its June meeting, despite visible signs of economic deceleration across the Eurozone. The composite Purchasing Managers’ Index (PMI)—a reliable metric for broader business activity—slumped to a 31-month low in May, following a contraction in the French economy during Q1 2026. Meanwhile, US forecasters now project inflation to end the year at 3.6%, marking yet another period where inflation sits stubbornly above the Federal Reserve’s 2% target.

In contrast to geopolitical events, the rise of AI represents a profound paradigm shift that will permanently alter the structure of the global economy.

The early part of 2026 saw a move away from software and information services businesses, as investors adopted a “sell first, ask questions later” approach. Time will tell as to which business models will become obsolete from the use of AI and which will see their productivity enhanced by these extraordinary breakthroughs.

For the vast majority of portfolios, maintaining a disciplined, long-horizon stance—what could be termed deliberate “inaction”—remains the soundest strategy.

Despite the pervasive negative sentiment in the financial media, all major equity indices remain in positive territory for 2026 – a vital reminder for us all to keep focused on corporate and economic fundamentals, rather than market emotion.

The coming, more relaxed, summer weeks, are a perfect time to get in touch to arrange a free, no obligations, meeting with me to discuss your personal financial situation.

In April 2026, I had the pleasure of addressing a select group of prospective buyers at an event hosted by a prestigious estate agency. The setting was a magnificent French château—the perfect backdrop to discuss the fiscal and legal complexities of acquiring such historic assets. While the focus was on the “Château lifestyle,” these insights are equally pertinent to any high-value property acquisition in France.

The first question is whether to buy as a private individual or to set up a private property company called a Société Civile Immobilière (SCI). France has strict inheritance rules which dictate that the children inherit the majority of the estate leaving the surviving spouse with only the beneficial ownership (or ‘usufruit’) of the property. Whilst some Notaries advise inserting a clause in the deed of sale known as a “Tontine” clause to circumvent this, the inheritance aspects of this clause are often not fully explained. The effect of the Tontine is that the surviving spouse or partner is deemed to have owned the property solely from the outset. This can mean that the deceased spouses’ children are therefore disinherited.

An SCI is a legal entity through which several people, family members or investment partners, can own a property jointly. Shares can be gifted to children every 15 years utilising the €100,000 tax-free allowance per parent, per child. Non-residents can also, depending on their national law, leave their shares to their heirs thus avoiding French ‘forced heirship’ inheritance rules. The shareholders own the shares of the SCI company and the SCI owns the property. However if a shareholder wants to live in the property as their main residence in France, the SCI can lose some of its benefits. Also as a private company, the SCI needs to be created and maintained with albeit very basic (but necessary) book keeping, annual shareholders meetings and company registers.

The purpose of an SCI is to own property and receive the rental income, it cannot carry out any other business. So if the owner wants to carry out private events, chambre d’hote or sell produce, they need to set up a separate private limited company (S.A.R.L). For this they will need the advice of an accountant.

If the property is worth over €1.3million the owner(s) may be liable for Wealth Tax (‘IFI’). Non-residents only pay Wealth Tax on their French assets over this threshold. French tax residents, are liable for Wealth Tax on their worldwide properties after their 5th year of residence. The Wealth Tax declaration is done online with the income tax declaration. The tax is calculated on a sliding scale starting at 0.5% (for assets between €800,000 and €1.3 million) and rising to a maximum of 1.5% on assets over €10 million. Cash buyers may want to consider taking out a mortgage since it can reduce the net taxable value of the property. SCI shareholders are not necessarily liable for Wealth Tax even if the value of the asset is over €1.3 million since their loans to the SCI can be deducted. Additionally, primary residences benefit from a 30% valuation reduction, which may help keep the estate below the threshold.

Lots of property owners rent out all or part of their properties either all year or seasonally. There are two categories of rental income, furnished rental and unfurnished rental. All rental income is taxed in France. Furnished rentals are treated as business income. Obtaining the “meublé de tourisme” classification is recommended since this allows for an abatement of 50% on the gross income before it is subject to tax (compared with the standard 30% abatement). This classification also allows a business to earn up to €83,600 under the simpler Micro-entreprise or only €15,000 if unclassified. Over these thresholds the business would be under the “régime reel” and would need to the assistance of an accountant. An accountant would also be able to advise on the LMNP (‘Loueur en Meublé Non-Professionnel’) status, whereby the value of the property can be depreciated. It is a good idea to ask the current owners of the property how they have structured their rentals or business.

France remains one of the world’s most desirable locations for luxury real estate. Before committing to a purchase, consult with experts who understand the cross-border nuances of the French system. At The Spectrum IFA Group, we provide bespoke financial advice and coordinate with a trusted network of estate agents, notaries, and accountants to ensure your investments are both protected and optimised.Together we can make your French dream come true!

The returns must be submitted before midnight on these dates, if not a 10% late penalty payment could be added to your tax bill. The paper returns must be put in the post box by midnight on 19th May.Whilst you can download our free Spectrum guide on your tax returns HERE, here are some tips that I have about doing the tax return given the recent changes to the system:

1. Have all your figures ready and written down before you start (from bank statements, December 2025 payslips, UK tax statements etc). Stating the obvious here but this is a bit like baking a cake and realising that you don’t have the necessary ingredients. It is also a good idea to look at the boxes that you put your income in last year.
2. If you have foreign income, do the 2047 form first. You need to go into “Annexes” and tick the 2047 box since it won’t be ticked from last year, then when you are in the 2047 form tick the boxes for your income. UK rental income and government pensions need to be put into Section 6 to be carried into box 8TK on the 2042. Other boxes will not be carried over automatically so you need to re-enter these amounts on the main tax form.
3. Your bank accounts are already listed and the good news is that this year you don’t have to find the separate 3916 form. However, if you have an assurance vie, the figure given as the amount as at 1st January 2025 will not be correct and will be the figure entered last year, so you need to update this. The other information regarding your other accounts, should be the same so there is nothing to do there.
4. This year you can choose whether your investment income is to be taxed at your marginal rate or at the flat tax rate. If you are either not taxable or only taxable in the 11% rate, then you should choose to have your investment income taxed at your marginal rate. However, if you are a higher tax payer, the flat tax may be more beneficial.
5. Don’t forget your tax credits. If you have home help (gardeners, cleaners etc) you get a tax credit of 50% of the amount even if you have no tax to pay. This may have been taken at source through CESU for example but if not, you need to declare the amounts on the tax certificates you received from these organisations. There are extra boxes this year where you need to state the name of the organisation, type of organisation, type of service provided etc as well as the amount.
6. Did you make any charitable donations in 2025? If so, you need to find the amounts and proof of these donations for your files. Charitable donations only give you a tax reduction, not a tax credit so if you are under the tax threshold you can declare the donations but it won’t affect your tax liability.
7. If you have paid into a PER in 2025 the figure will appear on the form but you need to reenter it in the box below.
8. If you have children in high school, sixth form or university you need to put the number of children in each category to get a small tax deduction. Cost of care for children under 6 can give rise to a tax credit of half of the amount.

Every year in France people either engage a tax specialist to do their taxes or they attempt to do the form themselves. In the latter case it can cause some stress and worry but also a rewarding feeling once it is done. There are many things that can stress me out but taxes isn’t one of them. So if you have any questions or concerns about your French taxes or financial matters, please do get in touch.

What to Check Before You Submit

It’s that time of year again.

For most people in France, the tax return is a rinse-and-repeat process — but when you have income, assets, or accounts across multiple countries, it’s very easy to miss something.

Below is a practical checklist to help you stay organised, avoid common oversights, and submit your return with confidence.

Note: This is a guide, not an exhaustive list. You remain responsible for your own tax return and for ensuring the information you submit is complete and accurate.

Currency tip:

• For one-off payments, use the exchange rate on the date received
• For regular payments (e.g. monthly pensions/salary), an annual average can be used
• Apply a consistent approach — you can’t choose a more favourable rate

What you must declare

The key rule in France is simple: Everything is declarable, not everything is taxable.

Checklist:

• All worldwide income
• UK pensions (state, private, government
• Rental income (any country)
• Investment income (interest, dividends, gains)
• Withdrawals from investment products (including Assurance Vie, ISAs, Investment accounts.
• Other income types (e.g. salaries, self-employed income, foreign earnings, return of capital where applicable)

Important:
Even where income has already been taxed elsewhere (for example UK government pensions), it still needs to be declared in France

In most cases, you will receive a tax credit in France for tax already paid, assuming a double taxation treaty applies

Ensure your figures are accurate and based on the correct exchange rates at the time income was received

Key things to check:

• All foreign accounts correctly declared
• Assurance Vie policies (Luxembourg / Dublin, etc.) included
• Correct boxes selected to trigger required declaration forms
• If you hold an S1, ensure the relevant box is completed on Form 2042 C

Healthcare and social charges

Your healthcare position can affect how social charges are applied.

Checklist:

• If you hold an S1, ensure the relevant box is completed on Form 2042 C
• Check social charges are applied at the correct rate
• Review how investment income is treated

Guide to rates (simplified):

• Pension income: up to 9.1%
• Assurance Vie gains: typically 17.2%
• Interest, dividends, capital gains: 18.6%

Important:
If you are covered by another EU system (e.g. S1), you may qualify for reduced rates. In some cases, charges may be applied initially and then adjusted or reclaimed later.

Tax credits and useful extras

• Home help (cleaner, gardener, etc.)
• Childcare costs
• Children in school (primaire, collège, lycée — small credits may apply)
• Any eligible household services
• Any tax certificates received

Note:
Some income and tax credits are pre-filled on the return. It’s worth checking these against your own records (e.g. December payslips or provider statements) and correcting if needed

Final checks before you submit

• All income sources included
• All foreign accounts declared
• Figures are consistent
• Exchange rates applied consistently
• No obvious omissions

Practical tips

• Don’t leave it until the last minute
• Use last year’s return as your template
• The right to make an error is recognised in French law — once the system reopens, you can go back and make corrections
• Use the online messaging system if needed
• You can also visit your local tax office — they are often very helpful

Useful resources

To make this easier, I’ve included a couple of practical tools at the following links, which I hope you find useful:

Tax Return Preparation Spreadsheet

Assurance Vie Declaration Template (Form 3916)

Spectrum French Tax Guide

Spectrum Assurance Vie Guide

March has been a rather long and hectic month not just in terms of workload but also due to the ongoing geo-political situation. Since the joint US and Israeli strikes on Iran on 28th February, we have faced soaring oil prices and persistent market volatility. With no clear exit strategy, investors remain nervous.

The investment landscape has changed significantly. One fund manager recently shared that while his career began with decisions based on technical data and analysis, he now finds himself monitoring Truth Social for indications of policy direction. The traditional “quiet weekend” has been replaced by the risk of late-night social media updates from the US President that can pivot global markets come Monday morning.

Despite a consensus that Iran needs to de-escalate to alleviate the economic pain felt by its regime and populace, and that US troops on the ground would be highly risky with no guarantee of success, both sides continue to match each other’s threats. Just last night President Trump seemed to suggest that the war would continue for another couple of weeks.

Oil and gas price rises have continued to rise over the past few weeks. Brent crude oil was 63.3% higher for the month, the largest monthly percentage rise on record over recent decades.

The markets remain understandably pre-occupied by the Middle Eastern conflict, and specifically the impact on energy prices. This could also affect inflation expectations leading to central banks possibly raising interest rates.

You can now choose whether you would prefer that your investment income be taxed at the flat tax rate or at your marginal rate. Previously by ticking the box 2OP on the tax declaration, your interest, dividends and capital gains would be subject to your marginal rate and not the flat tax of 31.4%. This choice was irreversible even if the taxpayer later realised that it was not beneficial. As from next year, taxpayers will be able to change this option. However, for income received in 2025 and declared in 2026 this does not apply.

The thresholds for micro-entreprises will increase for income earned in 2026, 2027 and 2028 to €203,100 for Micro-BICS for sales of goods and holiday rentals and to €83,600 for other micro-BICs (furnished rentals, services and arts) and for micro-BNC businesses. However, the threshold remains at €15,000 for “meublé de tourisme non classé”.

After a strong start to 2026, gold’s “safe haven” status is being called into question. Traditionally seen as a less volatile asset class that can hold its value in times of crisis, hedging against equity market falls, since the conflict escalated in March, gold prices have fallen steadily. In France, there are two types of tax on gold, either a 11.5% on the sale price or at 36.2% on the gain with tapered relief based on the duration of ownership and full exemption after 22 years.

After the Easter weekend I will be back at work but then will take the second week of the school holidays to spend time with family. If you have any questions about your finances or taxes in France, please do get in touch to arrange a free, no obligation, phone call or meeting.

A simple guide to key terms used in cross-border estate planning

Understanding inheritance terminology can be challenging, particularly when dealing with assets in both the UK and Spain.

Differences in legal systems, tax rules, and administrative processes can cause confusion for individuals and families managing cross-border estates. This guide is designed for UK nationals living in Spain, Spanish residents with UK assets, and anyone involved in administering an estate that falls under both jurisdictions. It explains commonly used inheritance and probate terms in clear language to help you better understand the process and make informed decisions.

Will

A written document prepared before a person’s death that sets out their instructions regarding who should manage the administrative aspects of their estate, who will be responsible for looking after their money and possessions while the process is being completed, and who they wish their assets to be distributed to.

Estate

The “estate” is the collective term for all financial interests of the deceased. This includes bank accounts, insurance policies, pensions, property, shares (including private and family-owned company shares), bonds, loans made to third parties that now need to be repaid, and other assets.

Forced Heirship (Spain)

In Spain, rules apply regarding how two thirds of an estate must be distributed. Children take priority over spouses, and only one third of the estate can be freely distributed.

However, for expatriates living in Spain, EU Regulation 650/2012 (“Brussels IV”) allows them to elect for the inheritance laws of their nationality to apply to their Will. For a UK national, for example, this makes it possible to distribute the entire estate in accordance with their wishes.

Please note that this EU regulation only applies if the instruction is expressly included in the Will.

Probate

Probate is the term used to describe the legal process of administering and distributing an estate.

In Spain, the document confirming distribution in accordance with the law and the Will is called the Escritura de Aceptación y Adjudicación de Herencia (Deed of Acceptance and Adjudication of Inheritance), which must be signed before a Spanish notary.

In the UK, the equivalent document is known as the Grant of Probate, which is issued by the Probate Office.

Trustee and/or Executor

A trustee and executor can be the same person, although it is often more than one individual in order to share the administrative responsibility.

The trustee is responsible for safeguarding the assets of the estate until they are formally transferred to the beneficiary. The executor is responsible for ensuring the legal formalities are completed so that the transfer of assets to the beneficiary is valid.

Beneficiary

A beneficiary is a person named in the Will who will receive all or part of the estate.

Bequest

A bequest is the term used to describe what is transferred to a beneficiary. This may consist of a single asset, such as a property, or multiple assets, such as property, bank account balances, and shares. A group of assets transferred together may also be referred to as a bequest.

Modelo 650

Modelo 650 is the Spanish tax form used to declare and pay inheritance tax and to support the preparation of the Escritura de Aceptación y Adjudicación de Herencia.

PA1P and IHT400

The UK form used to apply for a Grant of Probate is Form PA1P (if there is a Will) or PA1A (if there is no Will).

If inheritance tax is due, the executor must first complete Form IHT400.

Who Pays Inheritance Tax in the UK?

In the UK, the estate of the deceased is assessed for inheritance tax. The assessment is based on the total value of the estate.

Who Pays Inheritance Tax in Spain?

In Spain, each beneficiary who is a Spanish tax resident is assessed individually for inheritance tax based on the value of the assets they receive.

Double Taxation on Inheritances

As the UK and Spain tax different entities (the estate in the UK and the beneficiary in Spain), the same entity is not taxed twice. As a result, inheritance tax is generally outside the scope of the Double Taxation Agreement.

However, practical solutions may be available depending on individual circumstances, and appropriate professional advice should be obtained.

When Must Inheritance Tax Be Paid in Spain and the UK?

Inheritance tax is generally due within six months of the date of death. It is important to note that tax is not due from the date the beneficiary physically receives their bequest, which is a common misconception.

This six-month rule applies in both Spain and the UK:

• In Spain, payment must be made within six months of the date of death.
• In the UK, tax must be paid by the end of the sixth month following the death.

Case Study: Protecting Life Insurance from Inheritance Tax

At the start of every client relationship, we carry out a detailed discovery process to fully understand your personal and financial circumstances.

In this case, a married couple, both UK nationals living in Spain, held life insurance policies valued at £1,000,000 each. During our review, we identified that the appropriate Inheritance Tax mitigation documentation had not been put in place. Without this structure, the value of the life insurance policies would form part of their estate and could be subject to UK Inheritance Tax for their UK tax-resident beneficiaries.

Given that their estate exceeded the available allowances, this created a potential Inheritance Tax liability on the life assurance proceeds.

We implemented the appropriate documentation to ensure the policies were structured correctly. As a result, up to £400,000 per policy (£1,000,000 × 40%) in potential Inheritance Tax is avoided for their beneficiaries.

Important Notice

This article is provided for information purposes only and does not constitute legal advice. We recommend seeking professional legal advice to assist with the probate and distribution processes of an estate.

A specialist Inheritance Tax and Wills lawyer works with us to provide this service.

For an introduction to the lawyer, please email:barry.davys@spectrum-ifa.com

Geopolitics and Oil Prices

Over the past couple of weeks I’ve received a number of questions from concerned clients about the latest geopolitical developments and what they might mean for markets.

Whenever headlines become intense, it can understandably feel as though something dramatic must be happening in financial markets as well. The reality is often more nuanced — and this appears to be one of those moments.

In 30 seconds

Markets have reacted to rising geopolitical tensions, but the moves so far suggest caution rather than panic.

The key variable investors are watching is energy prices. Historically, bear markets tend to be linked to recessions, and the main risk from the current conflict is whether sustained oil price increases could slow economic growth.

Equity markets have moved lower, although declines have been relatively contained. Across developed markets, equities have generally fallen between 2% and 6%, while emerging markets have seen slightly larger pullbacks due to their greater reliance on imported energy.

Safe-haven assets have also seen some demand. The US dollar strengthened, while gold briefly rose above $5,400 per ounce before easing again.

Despite dramatic headlines, the overall reaction has remained relatively orderly. As LGT Wealth Management noted in a recent update:

“While the headlines have been dramatic, market moves so far suggest investors are reacting with caution rather than panic.”

Interestingly, much of the volatility has occurred beneath the surface of markets. The Rathbones multi-asset team recently highlighted that while headline equity indices have only fallen around 3–4%, there has been significant rotation between sectors and individual stocks.

Chris Saunders of New Horizon Asset Management also notes that the conflict is beginning to affect other parts of the global economy. Disruptions to Iranian production have tightened fertiliser markets, pushing prices higher and raising the possibility that food prices could also rise in the months ahead.

One of the main channels through which geopolitical events can affect economic growth is energy prices. Economists often use a simple rule of thumb: every $10 increase in oil prices can add roughly 0.3% to inflation and reduce economic growth by a similar amount.

With current expectations for US economic growth around 2.2%, oil prices would likely need to rise well above $120–$130 per barrel and remain there for a sustained period before recession risks became materially elevated.

At present, prices remain below those levels.

However, as Chris Saunders notes, the key variable may be how long the conflict continues, as prolonged disruption to Middle Eastern energy supply could delay interest-rate cuts and keep inflation pressures elevated.

As one Rathbones portfolio manager noted in a recent discussion:

“What was a good company before the weekend is still a good company afterwards. The share price may now be lower — which can create opportunities.”

Similarly, the investment team at Atomos emphasised that predicting short-term market movements during geopolitical crises is extremely difficult, reinforcing the importance of maintaining diversified portfolios designed to withstand periods of uncertainty.

Energy shocks can also accelerate structural change. Previous crises — including Europe’s energy shock following Russia’s invasion of Ukraine — helped accelerate investment in renewable energy, batteries and alternative energy systems.

Key Insights

• Markets have reacted with caution rather than panic despite dramatic geopolitical headlines

• Oil prices remain the key variable investors are watching

• Historically, bear markets are far more closely linked to recessions than geopolitical events alone

• Current oil prices remain below levels historically associated with recession risk

• Maintaining a disciplined, diversified investment strategy remains the most effective approach during volatility

In Summary

Geopolitical developments will inevitably continue to evolve over the coming weeks. However, markets so far appear to be adjusting rather than overreacting.

History repeatedly shows that while headlines can move quickly, markets often prove more resilient than expected.

I hope you found this update interesting and helpful.

If anything has raised questions for you, or you’d simply like to talk something through, please don’t hesitate to get in touch. That’s exactly what I’m here for.

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