View more on these topics

Abuse is blamed as de minimis faces axe

The Inland Revenue is set to axe the de minimis funding limit for pension schemes, claiming that IFAs are abusing the system.

The de minimis limit allows company directors to contribute up to £6,000 to their pension without having to take the Pension Schemes Office funding check.

The check is a salary assessment which limits the amount that a person can contribute to their pension.

In a letter to the ABI, the PSO accuses IFAs of using the limit to encourage clients to make additional contributions which are not permitted.

The move would spark an admin nightmare for IFAs, who would have to oversee the funding check for all clients. It could also threaten the ability of directors of small companies to make pension provision.

Scottish Life marketing manager Alasdair Buchanan says: "This is another example of the Revenue coming on heavy. Everyone will be affected, even those not causing a problem. This will make things difficult for IFAs."

Recommended

ScotMut adds new bond issue

Scottish Mutual has launched a new issue of its Triple Bonus Bond. The single-premium with-profits endowment, which provides guaranteed and non-guaranteed bonuses, is designed to increase the original lump-sum investment over 10 years. The offer period is March 2-May 8 with a guaranteed bonus of 65 per cent at the end of 10 years. ScotMut […]

Offices will pay out £100m to aid IFA review

Life offices are to stump up £100m to bail out IFAs struggling with the pension misselling review in a deal brokered by the ABI. Thirty IFA life offices have set up a new company, Pensions Advisors Support Systems, which will have two subsidiaries. PASS (Bureau) will draw up a guide explaining processes and standards to […]

Error forces EGM for the Witan trust

Henderson Investors is facing a bill of about £10,000 after making an error in the 1997 annual report of the £1.3bn Witan Investment Company. A proposal to allow a buy-back of up to 3 per cent of Witan&#39s shares was not heard at the AGM as planned on March 17. An outline of the proposals […]

Fry steps down as chief executive

Johnson Fry founder Charles Fry is standing down as chief executive on December 31. Fry will continue to serve on the board and will work part-time at the company in sales and marketing. Rebecca Thomas, who was appointed managing director in September, will take over operational responsibility.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com