View more on these topics

Aifa hits out at Govt for lowering pension tax relief

The Association of Independent Financial Advisers says the Government is jeopardising sensible saving plans of higher earners by reducing their pension tax relief.

Aifa director general Chris Cummings says this will further damage the pensions saving culture in the UK.

He says: “We need people to take more responsibility for their retirement plans and Government action should encourage more people to save, not punish those who are taking the right course of action.

“The decision to immediately limit additional pension contributions from higher earners risks jeopardising the sensible savings plans of wealth creators. This will impact on the self employed, entrepreneurs, and company directors who typically make irregular annual lump sum pension contributions. Although this is restricted to a small group of people it is a worrying and complicated step from the Government.”

Cummings says Aifa welcomes the steps to help small businesses, in particular the extention of the scheme allowing loss-making small businesses to reclaim taxes on profits from previous years.

But Cummings adds: “It is a shame that while the Government is committed to helping small firms the regulator, the Financial Services Authority proposes significantly increasing its fees for IFA firms.

“We note the Government’s plans to address the future of financial markets and that it will publish a paper before the summer that will cover regulatory approaches. Given the systemic importance of IFAs, and the fact that more consumers than ever before are seeking financial advice, we look forward to working with the Government on these plans.”



Financial fallacy proving too critical

The FSA’s conclusion that there is a distinct consumer misunderstanding over what constitutes advice and execution-only when buying critical illness cover has caused a stir among industry commentators.

When is £1m not £1m?

Neil Jones is technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The residential nil-rate band (RNRB) was first announced in […]


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