View more on these topics

&#39Widen CGT to end unfair tax system&#39

The Government should extend the £7,200 capital gains tax exemption to all savings products because Isas have failed to extend saving, says Ernst & Young.

The move would encourage more people to save than the overly complex Isa regime, E&Y argues in its pre-Budget submission. But it would still ensure that higher earners pay their share of tax.

The report, The Next Term: Tax Reform Proposals for the First Parliament of the 21st Century, says Isas only serve as a tax shelter for wealthy people rather than encouraging the majority of people to save.

The report says: “Recognising that the state actually receives very little in the way of tax from individuals with modest savings and investments leads to the question as to why the state bothers to tax these amounts. The need for Isas would be reduced. These, with mini and maxi Isas and the hangover from Peps and Tessas, are complicated and tend to encourage individuals to move savings into tax-effective environments rather than to encourage the majority of the population to save.”

Autif director of communications Anne McMeehan says: “I suspect that, although it is a clever proposition, it would be difficult to market as a concept. I do not know if the abolition of Isas would appeal to the Chancellor because they are only in their second year and are successful. At the very least they are attracting people into cash savings.”



There was plenty to get your teeth into last week – not all of it good. The Dow Jones index flirted with 11,000 (good) but the FTSE 100 continued in the doldrums (bad). The monetary policy committee cut interest rates (good) while BT demonstrated just how much debt they had managed to acquire (bad). And […]

Get the balance right

There are no final salary occupational schemes, so we will not have to investigate the guarantees such schemes offer. Your client is not in employment and therefore does not have access herself to any form of company pension scheme or company stakeholder pension. The issuing of a pension sharing order will create pension debits against […]

Part-timers&#39 go-ahead to backdate benefits to 1976

Around 40,000 part-time workers have been thrown a pension lifeline by a House of Lords&#39 ruling which allows benefits to be backdated to 1976. The landmark decision means IFAs have just six months after clients have left their employers to help them claim for their entitlements and potentially bolster their retirement income by thousands of […]

Scottish Widows – Global Isa

Thursday, 15th February 2001.Type: Unit trust mini or maxi Isa.Aim: Growth by investing in the Scottish Widows global trust.Minimum investment: Lump sum £1,000, monthly £50.Maximum investment: £7,000.Catmarked: No.Investment choice: 100 per cent in Scottish Widows global trust.Charges: Initial 5 per cent, annual 1.25 per cent.Commission: Initial 3 per cent, renewal 0.5 per cent.Tel: 0845 8450022.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm