View more on these topics

Friendlies want immediate start for child trust funds

Friendly societies have welcomed the introduction of child trust funds from 2005 but are calling on the Chancellor to allow additional contributions to be made straight away.

The initial Government payment into the fund at birth has been set at £250 for every child. This will be raised to £500 for children from low-income families who qualify for child tax credit.

Additional contributions from parents, family members and friends will be allowed up to an annual limit of £1,000. The fund will only be accessible when the child reaches 18.

Societies welcome the move to deliver the product through open market competition but have raised concerns that parents will not be able to make payments to the schemes until 2005.

Details of product specifications, sales regulation, limit on investment risk, the default investment option and extent of contributions will not appear until summer.

Family Assurance chief executive John Reeve says: “Parents should not sit tight and wait until 2005 if they want to save for their child. By starting today with a plan such as our junior bond, they will not miss out on two years&#39 saving opportunity.”

Treasury Financial Secretary Ruth Kelly says: “This initiative will strengthen financial education, promote positive attitudes to saving and ensure that all children, regardless of family background, will benefit from access to a stock in financial assets when they start their adult lives.”

Recommended

Close Property Investment – Property Investment Portfolio

Friday, April 18 2003 Type: Offshore fund of funds Aim: Growth or income by investing in property funds Minimum investment: lump sum £11,000, $15,000, euros 16,000 Place of registration: Isle of Man Investment split: Choice of freehold income trust, capital appreciation trust, active commercial estates plc, healthcare and leisure property fund, Close high income properties […]

The miles file

Rarely has a Chancellor taken so long to say so little. Even journalists, who are frequently asked to spin 1,000 words out of a single fact, were impressed by Gordon Brown&#39s ability to take an hour to say nothing. So thin was the content of last week&#39s Budget that the child trust fund – an […]

Hopes rise on deal to end InterAlliance dispute

Former director of Inter-Alliance (Edinburgh) Robin McGowan is hoping to reach an agreement with the national IFA after an eight-month dispute over a franchise transfer agreement. McGowan was an IA Edinburgh Franchise practice director and is looking to draw a line under the dispute which began in June 2002 when the national embarked on a […]

80% of funds are following a benchmark

More than three-quarters of UK funds are managed under contracts which require them to track an index or stay close to a specific benchmark, according to the Investment Management Association. An IMA report, based on a poll of 55 fund managers, reveals that around 60 per cent of assets are managed with a single tracker […]

Thumbnail

Case study: administration — implementing a management log

Our client is a leading video game and publishing company best known for its console role-playing game franchises. The client provides a number of benefits, at varying levels and cost that attract a P11d liability. With the absence of a management log to track data for benefit movements, enormous administrative and therefore cost implications were occurring each year just to comply with P11d reporting requirements.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment