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Brown’s big blunder

The Chancellor’s U-turn on allowing residential prop- erty in Sipps is a multi-million-pound blunder, say industry experts.

Accountants Grant Thornton says that several million pounds spent by providers, lenders and advisers in prep- aration has been wasted due to the pre-Budget report’s hammer blow this week.

Tax partner Richard Proctor says it is impossible to estimate the exact figure- and no major insurers are announcing their losses- but thousands of Grant Thornton clients alone will be affected.

Teamspirit retirement consultant Jo Smith says as well as system costs, there are indirect expenses, such as management and adviser time which will ratchet up losses.

Property Platform did a deal with Pensions Associates to offer overseas property in Sipps.

Property Platform director Ian Liborwich sunk 80,000 over 14 months into developing a property Sipp platform for IFAs and will now have to explain to investors why the service is being pulled.

Proctor says: “When you consider all the costs of preparing for this, it must run into millions of pounds, although it is impossible for us to estimate a more precise figure than that.”

Egg Design director Martin Fox says: “It is not just the advertising and marketing, you have to consider the management time that has been taken with firms planning. Companies will have been set up off the back of this and teams have been built looking for specific expertise.”


HNWs get all the attention

Paul Meaden Financial services manager, Blake Financial Services, Bridgwater, Somerset

HBOS warns protection is not factored into cost

The 0.3 per cent annual management charge on Turner’s proposed National Pension Savings Scheme has not taken into account the cost of consumer protection, according to HBOS. Speaking at the ABI’s Saver Summit, HBOS head of industry affairs Kate Flavell warned Lord Turner that the charge will not cover the costs of the Financial Ombudsman […]

Summary of pre-budget report coverage from Money Marketing

Brown to tighten anti-avoidance loopholesTax avoidance loopholes are being tightened up with Chancellor Gordon Brown looking at capital gains tax, offshore schemes and IHT. Brown throws residential properties out of SippsChancellor Gordon Brown has thrown residential properties out of Sipps in today’s pre-budget report. Brown addresses the misuse of Sipps to purchase second homesThe misuse […]

Pension firms blow gasket over turbo ban

The Chancellor’s measures to remove tax relief from tax free lump sums reinv- ested into pensions has been slammed by industry experts as unworkable. The Government has given no guidance on how pension providers should police this practice, dubbed “turbo-charging”, which firms say leaves them in an imposs- ible position. Scottish Widows head of pensions […]

The investment clock

While Trump blazes blond in the political foreground, it’s easy to overlook the economic background to the new political dimension of 2017. Political risk will be a feature of the year: the unpredictable and untested Trump administration has already created uncertainty, which is unlikely to diminish, especially if protectionist rhetoric starts to outweigh promises of […]


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