Cofunds’ calls for the Government to allow investors to transfer funds between investment bonds without suffering a tax hit has received backing from several major platforms.
The firm is linking up with the Tax Incentivised Savings Association to lobby HM Revenue & Customs to allow tax-exempt transfers between bonds. Tax-exempt transfers are already allowed with Isas and pensions.
The move follows the news that leading platform providers will allow advisers to bulk re-register in specie transfers of other assets as early as 2008.
Cofunds says it is working with other members of the UK Platform Group, including Fidelity FundsNetwork, Standard Life and Selestia, to have bulk re-registration operating and several of these platforms have come out in favour of lobbying the Government to change bond tax treatment.
FundsNetwork head of sales and marketing Rob Fisher says investors should be able to move investments without fear of tax reprisals.
Skandia Life head of marketing Billy Mackay agrees but adds: “Where it does become a little bit more problematic is that a huge proportion of investment bond cash is in old with-profits policies and the vast majority of these have market value reductions so, when you get into the details, tax is only one issue of moving money between these vehicles.”
Nucleus chief executive David Ferguson is delighted with the drive towards re-registration.
He says: “It is exactly what we have been saying for the last year since we started and roll on the same initiative with pension transfers.”