People have avoided the eurozone but the region is picking up – even in six months, it will still be a very good case for investment.”Ms Patel recommends the Artemis European and New Star’s European growth funds. Estate agents in Cyprus report house prices surging, with properties rarely available for less than the equivalent of £80,000.European equities are also looking more promising. During the 12 months to 22 March, average growth in funds investing in Europe, excluding Britain, nudged 27.2 per cent, nearly matching the 28.4 per cent achieved by UK funds.Yet while much is made of the potential benefits of expansion within the EU, the European economy continues to struggle. There are many problems, including dependence on growth in the US and Asia, a strong euro making exports expensive, high unemployment and structural difficulties such as rigid employment laws in Germany and a “one-size-fits-all” interest rate.Interest rates remain stuck at 2 per cent despite a clamour from businesses for a cut to kick-start growth, and pressure from Chancellor Gerhard Schr? of Germany and the French Prime Minister, Jean-Pierre Raffarin. Their concerns were highlighted by their countries’ economic figures: in January, Germany’s unemployment rate rose for the first time since May last year, while French household spending showed signs of a sharp slowdown.But in the midst of such gloom, reluctant investors may be overlooking a key point, says Meera Patel, senior analyst at IFA Hargreaves Lansdown.”It’s important to distance yourself from Europe and its economy,” she says “It’s all about investing in individual company stocks.

Easy access to cut-price labour and new markets is set to give companies across Europe more room for manoeuvre.”There are plenty of opportunities,” says Sascha Hirsch, manager of Baring European Select Growth and German Growth funds. “For example, the German tyre-maker Continental has already invested in the accession countries to take advantage of lower costs.”Baring’s German fund has seen growth surge by nearly two-thirds in the past 12 months. If you had invested £1,000 in this fund a year ago, you would now be sitting on £1,634.”The new countries coming on board should create new investment opportunities for fund managers,” says Patrick Connolly, research and investment manager at independent financial adviser (IFA) John Scott & Partners.Property markets in EU accession countries are already starting to heat up. Europe has been off the radar in investment terms in recent months, scaring away many investors with its complex economics and sluggish growth.
But this could all change from 1 May. Ten new members, Poland, Hungary, Cyprus, Slovakia, Malta, Slovenia, Lithuania, Estonia, Latvia and the Czech Republic will then join the EU, boosting the community of nations from 15 to 25. But after being swamped by hundreds of thousands of schemes, the service has narrowed its definition of those shelters that have to be registered..

This has made accountants and some lawyers wary about promoting aggressive tax planning schemes.”He adds that, initially, the IRS had a broad definition of tax shelters. The IRS has taken firms to court to obtain their lists of clients and has succeeded. “For most investors, the tax shelter rules have not made much difference, except there is more form-filling required,” he says.”The difference has been that the IRS has gone after accountancy practices and some of the law firms. These appear to have succeeded in reducing the number of “aggressive” tax planning schemes in the US.Richard Collier-Keywood, head of tax at Pricewaterhouse- Coopers, says: “In effect, these have closed down the promotion and implementation of 29 ‘abusive tax shelters’ on the IRS [Internal Revenue Service] list, and some companies have less appetite for more aggressive planning schemes than they did.”New York-based tax lawyer David Schulder, of Tannenbaum, Helpern, Syracuse & Hirschtritt, agrees that accountancy firms in the US have become more cautious in their use of “cutting edge” schemes. “If they register a scheme and the Revenue does nothing then it may be providing approval,” he explains. “At the moment, if accountants or lawyers set up schemes, they stress they could be challenged by the Revenue, which would lead to expensive legal action.”THE AMERICAN EXPERIENCE The Revenue’s proposals closely follow US tax shelter rules. The Revenue does not close schemes retrospectively, so it is keen to close them as quickly as possible before too many people benefit from them.”On a positive note, Robert Rackliffe, joint chief executive of IFA Aurora, says the new system may provide greater certainty for investors.

“But as it will be provided with details much sooner, it can close what it regards as loopholes straightaway.”Under the new system, once a scheme has been sold, your professional adviser should notify the Revenue, which will provide a registration number. “We see potential problems with the definition of what exactly has to be cleared – the definition of a shelter – and the general administrative burden this creates for taxpayers, advisers and the authorities,” says John Whiting, partner at accountants PricewaterhouseCoopers.Martyn Laverick, at independent financial adviser (IFA) Charcol Holden Meehan, says: “There will be fewer tax planning opportunities. This will be placed in a box at the top of your next tax return.Until more detail has been released, it is hard to know how the new regime will work. Because if the Revenue doesn’t like what it sees, and believes you are exploiting a legitimate tax loophole, it will simply close the scheme down.”The Revenue often does not find out about schemes until a year after they have been established,” says Mr Everett. Prices can be compared at . To make sure you are not guided solely by price, always check the level of the cover. For example, can other drivers use your car and would you be adequately insured on your travel policy if you had a skiing accident?You can also cut your insurance bill by paying annually rather than monthly and opting for a higher voluntary excess.Utility billsFuel and heating bills are lower during the summer months, so even though some people are paying over the odds for their energy, they are tempted to leave well alone despite the increased competition among suppliers.