Former Home Secretary David Blunkett says inheritance tax needs to be reshaped radically to ensure fairness and the Government must clamp down further on those seeking to avoid the tax through complex planning.Speaking at a Resolution Foundation event at the House of Commons, Blunkett said Chancellor Gordon Brown’s Budget crackdown on trusts was a welcome move but advisers would find ways of getting round the new regime. He said a rethink was needed to solve the IHT conundrum and move away from a situation where the wealthiest are able to avoid the tax while an increasing number of the population could be hit. Blunkett said: “The problem is that better-off people are least likely to pay it. Gordon’s crackdown was very welcome but every time we do something like this, advisers come up with new ways to advise on avoidance.” In a pamphlet released this week in association with the Resolution Foundation, Blunkett rejects calls for IHT to be scrapped as this would “reinforce disadvantage”. The pamphlet says there is “a strong argument for reshaping inheritance tax and clamping down on the mechanisms used by the rich to avoid paying it”. Former Cabinet minister Stephen Byers recently called for IHT to be scrapped, describing it as a “penalty on hard work, thrift and enterprise”. The Tories’ independent tax commission will next week call for the IHT burden on primary residences to be removed.
Cordea Savills has appointed former manager of the ING UK residential property fund Patrick Carr as director of UK Residential.Carr joins the residential team managing the diversified residential opportunities fund, the Cordea Savills student hall fund and the accommodation investment fund for charities.Carr worked for ING Real Estate for seven years spending the last two […]
Friends Provident has appointed a new group finance director to take over from Philip Moore on November 13.Jim Smart previously group chief financial officer at Boots Group before the merger with Alliance Unichem will be stepping into the role and will join the board on January 1 2007 subject to FSA approval.Philip Moore will succeed […]
Bancassurers remain a growing threat to advisers as the dominant force in distribution, warns Bankhall chief executive Peter Mann. He told delegates that while IFAs still handle most life and pension business in the UK, their share has fallen while bancassurers’ share has risen. Mann cited Datamonitor figures showing IFA market share has fallen from […]
Brokers have raised concerns that a direct mortgage website that pays half the proc fee to the customer could create commission bias and misbuying. The website, moneyback mortgages.com, searches for a mortgage from its panel of 53 lenders based on the borrower’s personal details and rebates 50 per cent of the proc fee. On a […]
Vincent Chailley, CIO of H2O Asset Management, discusses the key investment factors in 2016, including volatility, the disconnection between central banks and its implications on markets, as well as opportunities that may exist for investors.
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It is likely the increased regulatory scrutiny on fund managers’ value could filter down to advice firms in the future In my last article, I considered the influence a non-executive director could have in challenging an advice firm’s business model in light of the pension transfer issues. Now, in its asset management market study final […]
The financial services industry has failed to find ways of nudging consumers to think about their options at retirement, despite three years of pension freedoms. A panel at the Association of British Insurers retirement conference today lamented the way companies talk to people about pensions and the lack of engagement it inspires. ABI director general […]
The new chief executive of the single financial guidance body can expect a salary of £175,000 a year, according to a job advert posted online. The advert, posted on the Cabinet Office website says applications will close in mid-May with final interviews held in early July. The date for announcing the successful candidate has not […]