Pru advert cashes in on CGT hike
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Prudential has launched an advertising drive on the back of yesterday’s capital gains hike, encouraging people to put more money into their pensions to avoid the tax.
In the emergency Budget yesterday, Chancellor George Osborne raised the rate of capital gains tax to 28 per cent for higher rate earners as of midnight.
The annual CGT exemption allowance of £10,100 will remain unchanged this year but will rise with inflation in future years, while savers paying the basic rate of income tax will continue to pay CGT at 18 per cent.
The full-page Prudential advert in national newspapers today says: “Any growth in your pension is entirely free of capital gains tax. (Just thought you’d like to know after yesterday’s increase).”
The advert goes on to say: “When you consider that most people are entitled to tax relief on their contributions, it makes them a very attractive way to save for the long term.”
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Readers' comments (1)
John Blackmore | 23 Jun 2010 1:02 pm
shame that most who "invest" in a pension don't live long enough to make it the best retirement solution but with a husband and wife only being able to make tax free cgt gains of £20,200 pa and with them being restricted to a pitiful £20,400 into ISA it is easy to see why pensions are promoted
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