View more on these topics

Archie Kane in final plea to Govt to revise CGT changes

ABI chairman and Scottish Widows chief executive Archie Kane has made a last ditch attempt to persuade the Government to revise the planned changes to capital gains tax rules by writing an open letter.

In the letter, published in the Financial Times today, Kane argues that the CGT changes pose “a serious threat to long-term savers and the long-term savings industry” in their current form.

Kane urges the Chancellor Alastair Darling to act now to protect savers and the savings industry and says he is pressing for a meeting with Darling to discuss the issue in more detail.

The insurance industry has been lobbying the Government to revise proposals to introduce a flat rate of CGT because it will significantly skew the marketplace.

Investors taking out investment bonds will have a 40 per cent tax rate applied if they are higher rate tax-payers.

By contrast, investors in unit trusts and open-ended investment companies will only be subject to a CGT rate of 18 per cent which means they will be more attractive.

Kane says: “The impact on the savings industry cannot be underestimated as, once again, savers’ plans for the future are disrupted by government changes. This unfortunate tilting of the playing field away from a popular long-term savings product is another example of the unintended consequences of CGT simplification.

“However, if left unchanged it is bound to look like a move against the concept of long-term savings. There is also a danger that foreign investment in UK financial services will be adversely affected by disadvantaging the bond product market.”


FSA focuses on with-profits

The governance structures overseeing with-profits funds will continue to be the focus of FSA work this year.In a speech to retail financial services firms in London, managing director of retail markets Clive Briault saidthat consumers continue to express concerns about the performance of with-profits funds and the lack of transparency in both open and closed […]

Skandia rethinks ideas as Whiteoak quits

Skandia is making the first enforced review of its £743m best ideas range after Roger Whiteoak resigned from Axa Framlington last week.Whiteoak, who managed the £133m UK smaller companies fund and the Throgmorton investment trust, is one of the 10 managers making 10 stock picks on both the Skandia UK and global best ideas funds.He […]

Goldman Sachs pensions buyout subsidiary announces first deal

Goldman Sachs subsidiary Rothesay Life has announced its first buy-out deal with the purchase of the Rank Group Pension Scheme, which has assets of around £700m.It is thought to be the biggest transfer of pension scheme liabilities in the UK to date.Rothesay Life chief executive Addy Loudiaids says: “The Rothesay Life approach is to use […]

Hot property

The Chancellor’s draft legislation to reform capital gains tax announced at the end of last month has been welcome news for property investors. The decision to drop the tax to a flat rate of 18 per cent will release many property investors from the tax trap.Historically, investors have held onto properties for much longer than […]


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