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 The traditional “quiet weekend” has been replaced by the risk of late-night social media updates from the US President that can pivot global markets come Monday morning.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.

Please complete the form below:

What do I need to know?

I hope this newsletter finds you well; So, pensions are back in the spotlight as governments in the UK and Ireland introduce meaningful changes that could affect how individuals and business owners save for retirement. In this edition, we break down what’s changing, why it matters, and what you should be thinking about next.

Should Expatriates Keep Paying UK NI Contributions After 2026?

As you may have seen in the recent UK budget from April 2026, most expatriates will no longer be eligible to pay Class 2 National Insurance Contributions (NICs) and will instead need to use Class 3 contributions which cost more — but this still may offer an excellent return on investment.

The ruling states:

“From 6 April 2026, individuals will no longer be able to pay voluntary Class 2 NICs for periods abroad. Only voluntary Class 3 contributions will be available for tax years 2026 to 2027 onwards.

This change does not affect any voluntary contributions that can be paid for periods abroad before 6 April 2026 – there is more detail here

What you should do next

• Check your State Pension forecast – you can do this here: you will need a Government Gateway ID for the online system OR can contact them here
• See how many missing years you have
• Confirm that you’re eligible for Class 2 NI Contribution for previous years living abroad – check here
• Consider topping up those years at the lower cost Class 2NICs

If you’d like help interpreting your forecast or reviewing your eligibility for Class 2 vs Class 3 contributions, feel free to share the summary or screenshots — I’ll walk you through the options.

The ruling also states that “New applications to pay voluntary Class 3 NICs will need to have either”

• lived in the UK for 10 years in a row
• paid at least 10 years of National Insurance contributions while in the UK

What remains unclear is whether contributions paid for whilst abroad will count towards the 10 year rule and whether it is therefore sensible to pay for missing years before April 2026 to ensure you have 10 qualifying years so that you will be eligible to pay future years.

It certainly appears that long term non-UK residents, without 10 years of NICs, could be “locked out” of the system from April.

You generally need 35 qualifying years of National Insurance contributions to receive the full UK State Pension. That’s why it’s important to know three things:

1. How many qualifying years you already have
2. How many past years you can still buy back (at Class 2 rates until April 2026, if eligible)
3. How many future years you still have before reaching State Pension age

Once you understand these three numbers, you can work out exactly how many additional years you might need. And remember: you may not have to pay for every remaining year at the higher Class 3 rate after April 2026.

Many expatriates will reach the 35-year mark using a combination of existing contributions, cheaper buy-back years, and only a small number of future payments.

Government Gateway tip:

To log in, you need to receive a security code by text message. If you change your mobile number, make sure you update it with HMRC before you lose access to the old phone number. Otherwise, you may be locked out of your Government Gateway account and unable to view your State Pension record.

Why this decision matters

If you expect to remain an EU resident during retirement, there are often strong long-term reasons to transfer your pension out of Ireland; (I cant cover this in this newsletter but contact me if you want more information).

Because of this, it is crucial that whatever happens to your pension today does not restrict your ability to make that transfer in the future.

• Moving your pension into a PRSA can, in most cases, limit or block your ability to transfer the pension out of Ireland at a later date, which can unintentionally reduce your planning flexibility.
• A Master Trust may offer better long-term portability — but only if the trust deed specifically permits future overseas transfers.

Our role

We help clients:

• • Analyse their current Irish pension structure

• Confirm whether future overseas transfers will remain available
• Ensure the chosen structure supports your long-term retirement strategy, not just short-term compliance

Personalised Guidance?

If you hold — or think you may hold — an Irish Executive Pension, reply to this email or click here to schedule a consultation.

We’ll ensure the restructuring supports your long-term financial interests, rather than simply following administrative defaults.

A practical solution: International SIPPs (Self Invested Personal Pension)

Your UK pensions can still be actively and professionally managed by a local adviser by transferring them to an International SIPP. This can also allow you to consolidate multiple pension pots into one, making your retirement planning far simpler.

An International SIPP can provide:

✔ Access to regulated advice
✔ Better consolidation and control, including currency options
✔ Potentially lower fees
✔ A flexible investment approach aligned to your residency and long-term goals

If you have a UK pension and live abroad…

You don’t need to leave your pension un-managed. Send us your pension information and we’ll assess whether an International SIPP could allow us to advise you properly and optimise your retirement planning.

Just to recap…

Important pension changes are now underway across the UK and Ireland and for many expatriates and business owners these changes create both risk and opportunity.

• From April 2026, most expatriates will no longer be able to pay low-cost Class 2 UK National Insurance, making it more expensive to build State Pension entitlement in future. Checking your record and filling any gaps early could significantly improve your lifelong retirement income.
• In Ireland, older executive pension schemes are being forced to restructure under IORP II, by April 2026. The choice between a PRSA and a Master Trust is not just administrative — it can directly affect your ability to transfer your pension abroad in the future.
• For those holding UK private pensions while living abroad, access to advice and suitable structures has become more restricted since Brexit. In many cases, an International SIPP now offers the most practical way to regain control, consolidate pensions, and receive ongoing professional management.

Across all three areas, the key message is the same: early decisions have long-term consequences. A short review today can protect flexibility, reduce future costs, and strengthen your retirement position.

If any of these changes affect you, we encourage you to get in touch. We’re here to help you navigate the complexity and ensure your pension remains aligned with your long-term plans.