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Disappointment on drawdown

As I predicted in my Budget preview, the Chancellor has consolidated his strong record. So, no bribery and no giveaways.

I consider the lack of an announcement to raise the compulsory annuity purchase age to 80 or higher to be disappointing. We have clients using income drawdown who are knocking on the door of age 75 and who desperately want more flexibility.

The widening of the 10 per cent income tax band is welcome but we must bear in mind that the actual impact on the amount of income tax paid is fairly insignificant.

There was nothing new in respect of Peps and Isas. Ironically, the UK stockmarket looks favoured this year. This is at a time when IFAs are gearing up to use the relaxation of Pep rules to give clients greater diversification. My hope is that IFAs do not lose the impetus for diversification.

I was also disappointed not to see the raising of the maximum property values for housing investment trusts, particularly as we are seeing the launch of the first housing investment trust from Williams De Broe.

The increase in the childcare tax credit to a maximum of £200 a week will, I think, lead to many more registered childminders. These childminders will, in my view, provide more potential stakeholder clients.

The new R&D tax credit could prove a boost to UK healthcare companies and, therefore, those funds investing in them. Healthcare funds are receiving a lot of Isa money.

On a personal note, I am disappointed that paid paternity leave does not come in this year – I will be a father in September.


Myners&#39 MFR recommendations

13.5 THE MYNERS RECOMMENDATIONS AND THE MFR Paul Myners was asked to carry out his review of institutional investment by the Chancellor in the 2000 Budget. A consultation document was published by Mr Myners in May 2000 setting out the primary focus of the review which was to investigate whether there are factors distorting institutional […]

Inside EDGE

Back in 1999, Friday, June 18 to be precise, I cut out a short article from the Financial Times. There was a quote in it that had particularly appealed to me. Kim Howells, the competition minister, had said there was “absolutely no intention to set benchmarks for prices”, adding that it would be disastrous if […]

Community investment among tax incentives

Plans for a new community investment vehicle likely to be sold by advisers were announced in the Budget to encourage investment into Britain&#39s most deprived areas. There will also be a range of enhancements to venture capital trusts and enterprise investment schemes as well as an extension of the film tax relief scheme. The new […]

Sales boost for NU Healthcare

Private medical insurance business at Norwich Union Healthcare has risen by 15.6 per cent in the last year. The PMI specialist says new business rose to £2.04m last year from £1.77m in 1999. This is the first time the healthcare division of the life office has released results separately from the rest of the group. […]

Solving the income puzzle

There is a puzzle at the centre of financial markets. The global economy is growing, there are signs of inflation and interest rates are going up, yet yields remain low. In this article, James Foster, manager of the Artemis Monthly Distribution fund, unpicks this conundrum and looks at where investors can find income. There is […]


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