View more on these topics

ABI leads orphan tax protest

The ABI is lobbying the Government over plans announced in the Budget to tax orphan assets used by life offices to help support life offices’ with-profits funds.

The Government originally flagged up this proposal in its pre-Budget report but vowed to defer any decision to a later date.

Norwich Union chief actuary Mike Urmston says the company is particularly aggrieved that the Government is aiming to go ahead without industry consultation.

Urmston says if the Government thinks this is a victimless tax raid, it is wrong because these assets are used to support with-profits funds and taxing them would cost NU around 140m on its 2bn-3bn surplus assets over 10 years. This, he adds, would reduce the investment freedoms of the fund and result in lower equity exposure for with-profits portfolios.

Both NU and the ABI say the measures fly in the face of the Government’s longer-term goal of encouraging people to save.

Urmston says: “We thought this would go into consultation but it is very worrying the Government is giving itself powers to make regulations without referring back to Parliament or without the voice of the customer being heard.”

ABI director of financial regulation and taxation Peter Vipond says: “We remain very concerned about the Government’s intentions in this area. We are determined to do all that we can to prevent a rise in taxation on these savings products.”

Recommended

Hartford appoints six asset managers

Hartford Life has signed up six external asset managers to run funds for inclusion in its Hartford Gold unit-linked investment bond offering. Hartford worked with Old Broad Street Research to pick the managers and has signed up Barclays Global Investors, Fidelity, Invesco Perpetual, Investec, New Star and Schroders. The bond will be sold through IFAs […]

You just can’t lose with a VCT

If I follow the logic of your leading article (Money Marketing, March 17) and the views of the Financial Services Consumer Council, the best investment I can make is to try and get a financial adviser to sell me a venture capital trust.

Close centres Romulus on business

Close Property Investment is aiming to raise 10m for the Romulus high income fund, an unauthorised unit trust investing in high-yielding UK business centres.

Dividend slump? Not if you look globally

By George Boyd-Bowman, Manager of the Neptune Global Income Fund Recent research has indicated that global dividend growth will slump by as much as 50 per cent in 2016. As collapsing commodities hit high-profile dividend payers, George Boyd-Bowman explains why the US and Japan are his top picks for income growth in 2016. Click here […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment