View more on these topics

Blair and Hague in clash over pension fund raid

Tony Blair and William Hague locked horns before the Budget over Labour taxation of dividends in pension funds.

In a stormy clash in the Commons during Prime Minister&#39s Question Time, Hague attacked the Government for slashing the adv-ance corporation tax dividend relief on pension funds in 1997, a move that is worth around £5bn a year.

The Conservative leader claimed that pension funds have been plundered by £17.4bn since the change and pledged, if elected, to refund dividend tax credits to 630,000 pension policyholders.

The Tories consider it is one of the 45 so-called stealth taxes introduced since Labour came to office.

Blair argued that the key point was that the value of pension funds had risen.

In response to Hague&#39s promise to reinstate the credit, Blair said: “It is either unfair to pensioners or it is what we have said all along – their sums do not add up and they will take us back to boom and bust.”

Hague said: “Funds that belong to pensioners have been taken by the Government in stealth taxes.”


Beware the MFR sting

Those who have thrown their hats in the air after the Chancellor&#39s minimum funding requirement announcement should perhaps read the small print before they break open the champagne. The Government&#39s decision to abolish MFR has a major sting in the tail. In order to ensure that defined-benefit scheme members do not have their security reduced, […]

Couch potato culture threatens stakeholder

The average UK family are couch potatoes when it comes to planning for their financial future, according to a survey by Comdirect. The financial website found that only two out of five people spend any time thinking about pensions and investments while 99 per cent are glued to their TV at some time during the […]

Founder Royle quits Mortgage Intelligence

Founder and chief executive of mortgage broker network Mortgage Intelligence Steve Royal has sold his stake and resigned. He says he is leaving because he feels more suited to launching new businesses rather than the ongoing administration of a large company. He set up MI four years ago with the intention of providing the first […]

Scottish Friendly Assurance cuts bonus rates

Scottish Friendly Assurance is reducing bonus rates on its with-profits plans, blaming low inflation and low interest rates.The reversionary bonus for 2001 is down 0.75 per cent to 1.75 per cent of the sum assured plus 4.25 per cent of previously undeclared bonuses, from 2.5 per cent plus 5 per cent in 2000. The reversionary […]

Life cover for life

Jennifer Gilchrist Proposition Lead – Design, Royal London When someone mentions whole of life plans, most people will think of a niche product that serves as an inheritance tax planning tool for high-net-worth clients. And it’s really not surprising they’ve been pigeonholed in that way because before the arrival of RDR in 2013, that’s more […]


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