View more on these topics

AITC says scrap VAT on trusts to boost savings

The AITC is urging the Government to abolish VAT on the management services supplied to investment trusts, arguing that it reduces their competitiveness compared with Oeics and unit trusts.

In its response to the Government&#39s consultation on the way that VAT is levied on pension and investment funds, AITC technical director Ian Sayers says scrapping the tax would bolster savings into Isas, stakeholder and the Sandler products.

Sayers says investment trusts suffer discrimination because Oeics and unit trusts are not subject to VAT. He believes scrapping VAT would save the investment trust sector about £40m a year.

He says it would provide a boost to investors, as many of the bigger generalist trusts are more than 50 per cent owned by retail investors.

Sayers says the artificial tax distortion could prevent providers from meeting the Government&#39s 1 per cent cap, which is under consultation.

He says: “The tax is against the interests of consumers who choose to invest in the stockmarket through ITCs and is detrimental to the wider market as it reduces their competitive position compared with unit trusts and Oeics.”

The Treasury says taxes are only considered at Budget time.


The problem is education and not regulation

The February issue of Which? magazine published a half-decent report on the “care home crisis” without mentioning high increases in indemnity insurance premiums directly arising from its pursuit of the compensation culture.It is a grave disservice to consumers to pretend that unlimited compensation claims are unrelated to other areas of consumer interest such as care […]

Irish Life International – International Property Multi-Fund

Tuesday, 11 February 2003 Type: Offshore whole of life fund Aim: Growth by investing in performance bond, self-directed bond Minimum investment: Performance bond – £10,000, self-directed bond – £50,000 Place of registration: Dublin Investment split: Choice of performance bond, self-directed bond Isa link: No Charges: Performance bond &#45 initial 1.25% a year for five years, […]

Ex-bank and society staff &#39will be new generation of advisers&#39

The next generation of IFAs will be former high-street bank and building society employees who decide to become independent, according to a panel of leading advisers and product providers.Speaking at the Top 100 Summit, members of the panel of IFAs and providers said the Sandler suite of products, if adopted by high-street providers en masse, […]

IMA slams IPPR Isa research

The Investment Management Association has slammed the Institute for Public Policy Research&#39s call for the scrapping of Isas, saying its conclusions are misguided and its proposals unlikely to lead to increased saving amongst low earners. The IPPR says Isas have failed to penetrate those earning £10,000 to £15,600, but the IMA said Isas have continued […]

Life begins at…

By Fiona Holmes, proposition communications manager Having reached a certain age (it’s the new 40 by the way), I’m having to come to terms with the fact that my peers and I aren’t as immune from illness or death as we’d like to think. That’s the problem with 30 being the new 20 and 40 […]


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