Why Financial Planning ?

By Chris Webb
This article is published on: 17th March 2017

17.03.17

Financial planning is about establishing your future financial goals
and aspirations and working out the best way to achieve them.

Financial planning is about having a strategy, instilling discipline
and creating a structure to your financial world.

Over the years the “financial world” has changed significantly. This is great news for the consumer as this means there is now a much wider range of solutions and products to select from. Investments platforms have risen out of nowhere, insurance products have become increasingly more competitive and the choices with what to do with your pension are numerous.

As I mentioned, this is great news for the consumer. However, this also comes with a downside. More solutions equates to more complexity, more time required to understand the options and more time to get to grips with the tax, compliance and regulatory side of things. Quite simply, for some it can be a minefield !

Not everyone has the time, expertise or confidence to get the best value from this ever changing world and for those people independent financial advice / financial planning can be extremely valuable and worthwhile.

The Spectrum IFA Group is an independent financial advisory and through our relationships with our business partners we are able to offer access to the right solutions and products for your own personal circumstances.

Once we have a thorough understanding of your circumstances and requirements, we will conduct a full analysis of your situation and provide you with a tailored plan of suitable recommendations. This may result in one solution, it may result in two or three, but the end result is that this will enable you to start making decisions which can only help you towards your financial goals.

Being independent means we can offer products from a wide range of providers, we are not tied to “selling the same box to everybody”.

We will meet with you to discuss all of our recommendations, we will make sure that they are clearly explained, fully understood and jargon-free, so that you can make informed choices about your future, based on impartial advice.

You can ask as many questions as you like and request more information at any time. We do things at our clients own pace, not our own. There is no obligation to proceed with our advice, however once you have a full understanding of why we are recommending a solution for your needs you can then make the right decision….. for you !

Spanish Succession Tax (Inheritance tax)

By Chris Webb
This article is published on: 16th March 2017

If you are a resident of Spain it is important to understand that there will be liabilities due to the Spanish government in the event of a death. Whether it’s you that is inheriting part of an estate or it’s your estate being distributed the taxman is going to want his share.

Many British nationals don’t realise that depending on the asset and its location there may also be a claim from the UK taxman. Just because you are a non UK resident it does not eliminate the requirement to settle taxes in both the UK and Spain. Spanish succession tax will be due either when the assets being inherited are located in Spain, such as a property, even if the recipient of the asset lives outside of Spain OR if the assets are based outside of Spain but the recipient lives in Spain.

For example: if you leave your Spanish property to your children who are now UK residents they will be liable to pay succession tax to the Spanish government. On the flip side if you receive an inheritance from the UK and you are a Spanish resident then again you have to pay tax in Spain.

As mentioned above, if you are a British national and are resident in Spain you could be liable to UK inheritance tax as well as Spanish succession tax. In the UK they require all worldwide assets to be declared, as you will be considered “UK domiciled” by the government. It is almost impossible to be considered as anything other than UK domiciled, even if you haven’t lived in the UK for some time.

There is no double tax treaty signed between the UK and Spain when it comes to inheritance, however if tax has been paid in the UK the amount is usually deductible against the Spanish liability.

To complicate matters further, Spain have a standard set of “State Rules” which lay down the rates and allowances for succession tax as well as individual “Autonomous rules” which means things are different from one community to another. Detailed below are these state rules:
The tax rates differ depending on the value of the amount inherited. These range from 7.65% on the first €7,933, up to 34% on €797,555 and over.
Beneficiaries are graded into four different groups and the more remote the beneficiary’s relationship is to the deceased the lower the tax allowance and the higher the tax rates. These four groups are:

Natural and adopted children under 21
Natural and adopted children aged 21 and over, grandchildren, parents, grandparents, spouses
in-laws and their ascendants/descendants, stepchildren, cousins, nieces, nephews, uncles, aunts
all others including unmarried partners

Allowances are available between husband and wife or direct line ascendants/descendants, but this is set at just short of €16.000. If an inheritor is also a direct line descendant under the age of 21, there is an additional allowance of €3,990 for each year they are under 21. The total of this additional allowance is restricted to €47,858 per child or grandchild.

For more distant relatives (e.g. cousins) the exemption is set at €7,933. There is no exemption for beneficiaries who are not related.

A main home in Spain may be virtually exempt from Spanish succession tax provided the beneficiaries are either your spouse, parents or children and they continue to own the property for ten years from the date of death.

The exemption can also apply where the beneficiary is a more distant relative over the age of 65 and they have lived with you for at least two years before death. If these conditions are met, the value of the house can be reduced by 95% in calculating the tax base liable, subject to a maximum reduction in value per inheritor of €122,606. It is important to note that this is only applies principal private residence and is owned by a Spanish resident.

Some examples of where the Autonomous rules differ from the state rules:

In Valenciana, spouses and children receive an allowance of €100,000 each. They can also benefit from a 75% reduction in the amount of succession tax payable.

In Murcia, the taxable inheritance for children under 21 is reduced by 99%, while older children and spouses get a 50% reduction.

In Andalucía, spouses and children can benefit from a 100% exemption for inheritances up to €175,000, provided they are not worth more than €402,268.

Cataluña offers a 99% allowance for spouses. Other Group I and II relatives receive a relief depending on the amount of their inheritance. Personal reductions are €100,000 for spouses and children (more for those under 21), €50,000 for other descendants, €30,000 for ascendants and €8,000 for other relatives. The 95% main home relief is up to a property value of €500,000, with the amount pro-rated among the beneficiaries (minimum €180,000 limit each). The property need only be kept five years rather than the 10 year state rule.

To summarise the key points of succession tax:

Tax is paid by each recipient, rather than by the estate
Spouses are not exempt
Allowances under the state rules are very low – just €15,957 for spouses, descendants over 21 and ascendants, €7,993 for other close relatives and nil for everyone else
Under state rules, tax is applied at progressive rates from 7.65% (for assets under €7,993) to 34% (for assets over €797,555). However, multipliers depending on the relationship between the two can increase this rate
If you leave assets to your spouse, who then passes them on to your children when he/she dies, succession tax will be due again on the second death
Succession tax also applies to pension funds
Tax is paid at the time of the inheritance, even if the funds are not accessed at the time. There is a six-month period to pay the tax after the death, although it is possible to apply for an extension in certain cases
Succession tax is governed by both state and local autonomous community rules; each community has the right to amend the state rules
Whether the state or the local autonomous community rules apply for each case, depends on where the beneficiary and the donor are resident and where the assets inherited/gifted are located
If you are UK domiciled you need to consider both the UK inheritance tax rules as well as the Spanish succession tax rules

Whilst the Spectrum IFA Group are not tax advisers, we can help to put you in touch with the right people. It is important to understand the various succession tax rules and how they apply to your situation, as well as how they affect any UK liability. You need specialist advice to understand the intricacies of the two tax regimes, and how to lower both tax liabilities and potentially save your heirs a considerable amount of tax. You can often combine your estate planning with your personal tax planning.

*Sources: Advoco, LegalforSpain, Globalpropertyguide, GovUK, AILO

When is a guarantee not a guarantee?

By Derek Winsland
This article is published on: 15th March 2017

15.03.17

On 20^th February, the government issued its eagerly awaited Green Paper on reforming defined benefit occupational pensions, more commonly known as final salary pension schemes. This consultation document invites opinion from the pensions industry for giving the government powers to re-structure the benefits payable from such schemes in instances where the employer (and its pension scheme) are in financial difficulty.

For re-structure, read ‘water down’, as what the government proposes is that the scheme, with tacit government approval, can change the terms by which pensions are paid out to its pensioners.

The catalyst for this green paper is the situation surrounding Tata/British Steel, where the sticking point for any sale hinged on the deficit in the British Steel Pension Scheme. This deficit has been variously reported as between £300m and £700m and under current rules, any buyer would have to take on responsibility for addressing this shortfall. Negotiations between the trustees of The British Steel Pension Scheme, Tata and the government has resulted in the trustees amending the way pensions in payment are increased annually from Retail Price Index (RPI) to the lesser Consumer Prices Index. Experts believe this will save the pension scheme, on average £20,000 per member.

Fast forward to 20^th February and the government now believes this would be beneficial for ALL schemes suffering from deficiencies in its funding to be able to water-down its benefits. But is this all bad news?

In the case of Tata/British Steel, the alternative was for The British Steel Pension Scheme, with £14 billion of assets, to enter the pension industry’s ‘safety net’ the Pension Protection Fund. If a scheme enters the PPF, its pensioners are guaranteed 100% of their pension entitlement up to a ceiling of £37,420 (at age 65), but with annual increases limited to 2.5% pa. For those members, yet to reach pension age, they are entitled to 90% of their pension.

The Tata deal gives its pension members better benefits than they would receive in PPF, and so received the approval of government and the unions.

The deal that Sir Philip Green struck with the Pensions Regulator for the BHS Scheme is structured along the same lines – the £363m that he ‘deposited’ alongside the BHS Scheme, which has entered PPF, will allow for the BHS pensioners to receive better benefits than would otherwise have been paid from the PPF. I say ‘deposited’, because it is a one-off, no-strings attached, contribution by this Knight of the Realm, to keep the Pensions Regulator happy, whilst preserving the number of yachts in his possession.

And the BHS deal adds to the uncertainty defined benefit pension scheme members must be feeling right now. Sir Philip’s ‘deposit’ has been labeled, within the industry, as a Zombie Pension Fund. In essence, it allows employers to deposit a chunk of money in a pot, separate to its pension fund, that will be called on to sweeten the pill if the scheme then enters PPF.

But why would an employer do this? Because a move such as Sir Philip Green’s puts a cap on the employer’s liabilities. If an employer can strike a deal where it can walk away from its continuing responsibilities to its pension scheme members, then it’s going to be attractive. We’re all going to hear a lot more about ‘sustainability’ of pension funds, with its open-ended responsibility and liabilities falling on the employer. This green paper is, I fear, going to open the flood-gates to more deals being struck by employers with their pension scheme trustees.

I may be wrong but I suspect Mergers and Acquisitions activity could reach unprecedented levels if the government gives the nod to these pension changes.

If you have preserved pension benefits held in a defined benefits pension scheme and would like to find out more about your pension entitlement and its funding position, then please contact me direct on the number below. You can also contact me by email at derek.winsland@spectrum-ifa.com or call our office in Limoux to make an appointment. Alternatively, I conduct a drop-in clinic most Fridays (holidays excepting), when you can pop in to speak to me.
Our office telephone number is 04 68 31 14 10.

The ABCs of Spanish taxation when investing in real estate in Spain

By Jonathan Goodman
This article is published on: 8th March 2017

08.03.17

For a long time, Spain has been considered a country of interest for real estate investors. It is a Western European country with many types of attractive properties available: residential, retail, offices, logistics, industrial, and more. And all this in a place that enjoys a stable legal system, over forty million consumers, and a great climate.

The Spanish tax system, however, is one of the most complex in the world. This being the case, it is essential to know the taxation associated to each of your investments in order to avoid surprises. We have written this guide as a quick introduction for first time investors. Nevertheless, you must consider it just an introduction since every property has its own peculiarities. We would be happy to help you make your investments a success.

This article was written by AvaLaw and first appeared on www.avalaw.es

Reasons to Wrap

By Sue Regan
This article is published on: 3rd March 2017

03.03.17

It’s no secret that the Assurance Vie (AV) is by far and away the most popular investment vehicle in France……….and for good reason! Most of you will already be familiar with these investments, or at the very least, have heard of them, but it doesn’t harm to be reminded now and again as to why they are so popular.

What are they? – An AV is simply a life assurance wrapper that holds financial assets, often with a wide choice of investments, and there is no limit on the amount that can be invested.

What’s so good about them?…..quite simply, their huge tax advantages, such as:

Tax-free growth – funds remaining within an AV grow free of French Income and Capital Gains tax

Simplified tax return reporting – considerable savings in terms of time and tax adviser fees

Favourable tax treatment on withdrawals – only the gain element of any amount that you withdraw is liable to tax. There is an additional benefit after eight years in the form of an annual Income tax allowance of €4,600 for an individual and €9,200 for a married couple

Succession tax benefits – AV policies fall outside of your estate for Succession tax and the proceeds can be left directly to any number of beneficiaries of your choice (not just the ones Napoleon thought you should leave them to!). There are very generous allowances available to beneficiaries of contracts taken out before the age of 70.

Why invest in an International Assurance Vie?

There are a number of insurance companies that have designed French compliant international AV products, aimed specifically at the expatriate market in France. These companies are typically situated in highly regulated financial centres, such as Dublin and Luxembourg. Some of the advantages of the international AV contracts are:

The possibility to invest in multiple currencies, including Sterling and Euros.

A large range of investment possibilities available.

The majority of international AV policies are portable, which means that should you return to the UK, it will not be necessary to surrender the bond.

The documentation for international bonds is available in English.

At Spectrum, we only recommend products of financially strong institutions and domiciled in highly regulated jurisdictions. If you would like to know more about these extremely tax efficient investments, or would like to have a confidential review of your financial situation, please feel free to contact me.

The Spectrum IFA Group advisers do not charge any fees directly to clients for their time or for advice given, as can be seen from our Client Charter at spectrum-ifa.com/spectrum-ifa-client-charter

BRITISH IN ITALY

By Gareth Horsfall
This article is published on: 2nd March 2017

02.03.17

As you may already be aware I am now a part of the group called ‘British in Italy‘ which has been set up to protect and fight for the rights of Italian citizens living in the UK and UK citizens living in the EU.

As we move further through the BREXIT process no doubt more information will come to light regarding the protection that the UK and EU will grant us in these negotiations.

Our message is simple:

We should be granted all the rights that we have acquired and/or are entitled to before the UK chose to leave the EU.

I would ask you to get behind this movement and help us to fight for you in the UK and in Italy, in our discussions at the UK Embassy and also in our meetings with Italian MPs. It is very important that we are seen to be representing a large number of UK Nationals living in Italy. Numbers hold a lot of credibility for us.

In 2015 ISTAT (the Italian statistics agency) recorded approximately 27000 UK Nationals registered in Italy. We are in touch with about 1000. We have a long way to go!

If you have not yet made your presence known, and/or you know someone who hasn’t then feel free to get in touch with the British in Italy group at britsinitaly@gmail.com Your name and contact information will be registered and you will be added to a newsletter mailing list. (Your information will not be shared or used for corporate purposes).

Or follow us on Facebook HERE

Our objectives are listed below:

British in Italy is a group of UK citizens resident in Italy concerned about the effect of Brexit on the many thousands of UK citizens in Italy and the half million or so Italians in the UK.
Our aim is to ensure that Brexit does not penalise these individuals, all of whom made the decision to move across the Channel in bona fide and relying on their EU right of freedom of movement.
UK citizens already in Italy and Italians already in the UK should therefore continue to have all the rights they had acquired or were in the process of acquiring while the UK was in the EU.
We have already lobbied the UK government hard not to take these rights away from EU citizens in the UK.

Remember to get in touch at britsinitaly@gmail.com

• We now call upon the Italian government, both as a national government and as a founding member of the EU, to ensure that in the negotiations over Brexit these rights are not taken away from expatriate citizens on either side of the Channel.

Remember to get in touch at britsinitaly@gmail.com

UK PUBLIC SECTOR PENSIONS, BREXIT AND ITALIAN CITIZENSHIP

By Gareth Horsfall
This article is published on: 1st March 2017

01.03.17

I was watching a nature documentary with my son the other day and we were watching the foraging activities of grizzly bears in North America.

It was interesting from the perspective that they will forage across huge distances in search of different food types to ensure they get the proteins, minerals and vitamins they need to stock up for the long winter ahead of them.

In some ways this behaviour reminded me of the foraging that I sometimes embark upon, across the internet, to ensure that you have all the information you need to weather the seasons ahead. We have lived through some spring and summer seasons, metaphorically speaking, but politically we seem to be entering autumn and possibly winter, depending on your point of view of course. I imagine for those people I know who voted BREXIT, that this is a new dawn. However, I will stick with my view for the purposes of this blog.

FORAGING
I was foraging through the internet last week in search of some information on UK pensions and happened to stumble across an Italian fiscal website which had a summary of the Italian tax treatment of pensions from around the world.

To my surprise, my eyes fell across the following statement in relation to pensions paid from Argentina, UK, Spain, the USA and Venezuela:

‘Le pensioni private sono assoggettate a tassazione solo in Italia, mentre le pensioni pubbliche sono assoggettate a tassazione solo in Italia, se il contribuente ha la nazionalità italiana.’

WHAT DOES THIS MEAN?
In short, and what caught my eyes was specifically in relation to the tax treatment of public section pensions in Italy.

…….le pensioni pubbliche sono assoggettate a tassazione solo in Italia, se il contribuente ha la nazionalità italiana.’

(Public sector pensions would be those defined as local Government, doctors, nurses, police, firemen, armed forces, teacher etc).

If you are a holder of one of these types of pensions and are resident in Italy, you will likely know that under the double taxation treaty with the UK, in this case, that public sector pensions are only taxed in the UK, for those who are no longer UK resident and are therefore not subjected to taxation in Italy.

However, the above statement implies that if you are an Italian national then this pension would be taxed in Italy. (Taking into account any double taxation credit that would need to be applied). Therefore, Italian tax rates would apply and the pension would not benefit from the application of the UK personal allowance, in Italy, either.

This is clearly important, given BREXIT, and the number of people who were considering or making application for Italian citizenship as a means of resolving the issue of residency. Italian citizenship would define you as an Italian national and tax would apply to a UK public service pension.

DOUBLE TAXATION TREATY
Without wanting to take the words of a website as hard evidence, I did some more foraging and can confirm the words of the double taxation treaty (UK/Italy) as follows:

(2) (a) Any pension paid by, or out of funds created by, a Contracting State or a political or an administrative subdivision or a local authority thereof to any individual in respect of services rendered to that State or subdivision or local authority thereof shall be taxable only in that State.

(b) Notwithstanding the provisions of sub-paragraph (2)(a) of this Article, such pension shall be taxable only in the other Contracting State if the individual is a national of and a resident of that State.

THE BREXIT PROBLEM JUST KEEPS GETTING BIGGER
So, here we have another BREXIT problem which has now arisen as part of further investigation. I would suggest that Italian citizenship, for those with UK civil service pensions, needs to be thought out carefully and planned financially, before any action is taken.

Italy – Thinking about taxes?

By Gareth Horsfall
This article is published on: 14th February 2017

Tax in Italy can seem complicated but with careful financial planning it needn’t be.

A summary

As a fiscally resident individual in Italy you are subject to taxation on your worldwide income (from employment, pensions or investments), assets, realised capital gains and the capital itself. The rates depend on the types of income you generate and which assets you hold. This means you are required to declare all your financial affairs no matter where they might be located or generated in the world.

Tax on Income

If you are in receipt of a pension income and it is being paid from a private pension or occupational pension provider overseas or you are in receipt of a state pension then that income has to be declared on your Italian tax return. Certain exemptions apply for Government service pensions.

It is a similar picture for income generated from employment. This is a slightly more complicated issue that depends on many factors. If you have any questions in this area you can contact Gareth Horsfall on gareth.horsfall@spectrum-ifa.com

Investment income and capital gains

Interest from savings, income from investments in the form of dividends and other non-earned income payments are taxed at a flat percentage rate. The same applies to realised capital gains.

Some wealth tax may apply on the value of your investments each year as well. This is charged on the capital value as at the 31st December each year

Property Overseas

Property which is located overseas is taxed in 2 ways. Firstly, there is the tax on the income itself and, secondly, a tax on the value of the property.

1. The income from property overseas.

Overseas net property income (after allowable expenses) is added to your other income for the year and taxed at your highest rate of income tax in Italy.

2. The other tax is on the value of the property itself.

The value on which this is calculated is the equivalent of the Italian cadastral value of the overseas property. The value, on which the tax is charged, depends on whether the property is located inside the EU or not. A credit may be applicable depending on where your property is located.

Taxes on Assets

1. Banks accounts and deposits

A fixed charge is applied, per annum, per bank account, held overseas. Minimum balances apply.

2. Other financial assets

The wealth tax on other foreign-owned assets (IVAFE), covers shares, bonds, funds, cryptocurrencies, gold, art or other portfolio assets that you may hold. The tax is charged on the value as of 31st December each year.

Placing your assets in a suitably compliant Italian investment structure can help reduce taxes and adminstrative burden and aid in your financial planning in Italy.

You might pay more than you need to?

This is a general list of the taxes that could affect you when resident in Italy. If you haven’t conducted a financial planning exercise before moving to or since moving to Italy, you could be paying more than you need to. Our experience is that most people are.

We can, in most cases, identify a number of financial planning opportunities for individuals looking to move to, or already living in Italy, to protect, reduce, and avoid certain taxes.

Achieving financial stability in France

By Amanda Johnson
This article is published on: 31st January 2017

31.01.17

When looking at achieving financial stability in France, budget planning and regular savings are two ways which can help smooth out any bumps in the road. Unexpected expenditure can put immense pressures on most families and adopting a few simple actions from today can really help you, in the event of an issue arising.

The first thing to do is understand exactly how much money comes in monthly. For those who are salaried or on pensions, this can be easier than those who work for themselves. If your income is erratic, it is worth looking at your last 12-24 months’ bank statements and seeing if you have seasonal income or regular money coming in.

Once you have an idea of the size and regularity of your income, you should then look at your expenditure and again look at when these monies are due, not just the amounts. Include all bills such as car servicing, insurances, taxes, average food costs and aspirational costs such as holidays, birthdays, new white goods etc…

The third step is to look at these figures/estimations and get an idea of your personal cash-flow. e.g.:

	Jan	Feb	March	April	May	June	etc.
Income	€1500	€1500	€1500	€1500	€1500	€1500
Expenditure	€1300	€1400	€1850	€1500	€1100	€1700

Surplus/deficit per month	+€200	+€100	-€350	€0	+€400	-€200

Running Balance	+€200	+€300	-€50	-€50	+€350	+€150

Now you can see your anticipated income verses expenditure on a month by month basis, it is possible to spot “pinch points” (March & June in this example) and plan to get around them:

Can some of the March or June expenditure be put back a month?
Can I increase my income slightly by working a few additional hours or taking on a few extra orders?
Can I reduce by bills by swapping suppliers?
Can I reduce my food bills by shopping at alternative supermarkets or growing things myself?

Finally, I recommend a plan to overcome any emergencies, which may arise. It is worth sitting down and discussing what emergencies may merge and their cost, both in what you spend to fix them plus any income you may lose in lost time. Emergencies can include boiler failure, serious car repairs, recovery from accident of illness and returning to the U.K. to support family needs. Whilst you cannot plan for every eventuality, you can get an idea of the likely maximum cost of one of these emergencies becoming a reality. You can now ensure you have a plan in place to implement and overcome the stress an emergency invariably brings:

Does your budget plan show a regular surplus which can start to save regularly to cover an emergency?
Do you have a credit card with a sufficient credit balance to cover your emergency cost?
Do you have a good track record with your bank, which would enable you to take a 3-6-month payment deferment on any mortgages or loans and get your cash-flow back on track?
How easily and quickly can your current investments be partially encashed to release monies to cover the emergency?

I hope that this article enables some of the mums here to plan more effectively. Knowing when your money comes in and goes out, working around “pinch points” in advance and preparing for how to deal with the costs of an emergency, will help you in handling issues when they do arise. It will also reduce stresses and strains on your personal and family life which can arise.

Whether you want to register for our newsletter, attend one of our road shows or speak to me directly, please call or email me on the contacts below & I will be glad to help you. We do not charge for reviews, reports or recommendations we provide.

This article first appeared on MUMS SPACE FRANCE Money Matters

Theresa May addresses Brexit

By Chris Burke
This article is published on: 25th January 2017

25.01.17

Theresa May, given one of the hardest Prime ministerial assignments perhaps of all time, gave her anticipated speech of the UK’s plans to leave the EU.

Why was it so hard?

When you have a referendum vote decided by only 2%, you have almost two equal sides to please. Those who voted to leave the EU, and those who were against it. Rather than alienate them and make them feel bad that the UK is going to leave the EU, like any good leader she had to try and get them feeling positive that, although they didn’t want it, perhaps there is lots to feel optimistic about leaving the Euro. A tough job in anyone’s book.

What did she say?

It was more of a case of what she didn’t say. Like a poker player, there was no way Theresa was going to give away to the other ‘Players’ what cards she was holding, how she was going to play them and perhaps most importantly which were her ‘Trump’ cards. What she did though was tell everyone what Britain was and wasn’t going to accept and how it would be done.

What information did she give away?

She will not settle for a bad deal for Britain, and she is prepared to walk away from the negotiations if she feels the deal is not right for the UK. Indication was also given that any agreement that was reached would be voted on by UK Parliament. She also confirmed that Britain will leave the EU’s single market – despite backing membership less than a year ago – to regain control of immigration policy and said she wants to renegotiate the UK’s customs agreement and seek a transition period to phase in changes. Her 12 point plan which starts with confirming leaving the EU and ending in a smooth, orderly Brexit, had recollections of a speech Hugh Grant gave in the film shown at every Christmas, ‘Love Actually’. It was very strong, very direct with clarity and highlighting the fact that Britain will not be bullied or pushed around. It is perhaps a strange comparison but it was arousing, just like the film, nonetheless.

How did it go down?

In essence very well. Theresa gave an assured, strong performance which the markets reacted to and she made it credible that Britain can still be a ‘Great’ force outside the EU. Whether this is the case has to be seen, but 50% of the reason why people react in life is their perception. And on this evidence, the people’s perception was good. Both from inside the UK and in the EU, most interestingly.