View more on these topics

Brown feared Revenue liability on Sipps

Chancellor Gordon Brown did not ban residential property in Sipps outright as he was worried about the poss- ibility of the Revenue being sued, says Sipp administrator Hornbuckle Mitchell.

Hornbuckle managing director Mark Stubbs says the Chancellor was concerned about the Revenue’s position after it publicly stated that Sipp investors could buy off-plan residential prop- erty in anticipation of A-Day, despite the asset never appearing on its permitted investment list.

Brown’s pre Budget report shock U-turn on Sipps last week did not ban residential property but he made it deeply unattractive as an investment by stripping away the tax relief and adding a 40 per cent tax surcharge, along with a 15 per cent trustee charge that would be passed on to the client.

Stubbs says: “The Government could not ban residential property because it would have embarrassed the Revenue and it would have been sued, so it just changed the tax relief on it, which effectively banned it.”

Hargreaves Lansdown head of pensions research Tom McPhail says: “There were many reasons contributing to Brown’s decision but it boils down to the Treasury being backed into a corner and having to come up with a holding strategy, not an outright ban, that can be returned to in the future.

“I expect further nego- tiations to take place with the industry with scope for the possible return of cer- tain benefits.”


Abbey offers switch for Glasgow staff

After a restructure, Abbey is offering members of its Glasgow retail marketing teams roles at its Milton Keynes site on the investment side of the business.

BBB announces EGM

Berkeley Berry Birch has announced an EGM for January 9 to put forward capital reorganisation proposals to give the firm a market capitalisation of 4.6m.The directors believe the move will create an appropriate level of authorised but unissued share capital to cover any equity fundraising.BBB also says as soon as it is in a position […]

Iimia invests £4m in Japanese trust

Fund of fund specialist Iimia has made a £4m investment into the new Japan income investment trust from Morant Wright Management, the London-based boutique specialising in Japan.

Unfinished business?

Pension specialist Fiona Tait gives an update on three big announcements from the 2016 Budget – Pensions Advice Allowance (PAA), the Lifetime ISA (LISA) and the pension dashboard. £500 Pensions Advice Allowance What’s new Under current rules it is possible to deduct an adviser charge from a defined contribution pension fund to pay for financial […]


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 thought leadership.

    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