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Government consulting on equity release reversion plans says Green Paper

Pensioners will be allowed to pass the value of their annuity to dependents upon death until age 75 according to proposals outlined in the Government&#39s Pensions Green Paper.

But before any money is passed on it will be hit by a 35 per cent tax, a level set far too high according to IFAs, who say the figure is arbitrary and will penalise pensioners unfairly.

Other measures include pushing forward with limited period annuities and extending phased retirement rights to occupational members allowing them to take part of their pension in an annuity and continue working.

The reforms to the annuity regime do not deal with the age 75 rule and have been branded “timid” by critics such as Retirement Income Reform Campaign director Dr Oonagh McDonald.

Wentworth Rose managing director Philip Rose says: “I do not think they should have applied this tax. The vast majority of these people are going to be basic rate tax payers and all of a sudden they are going to be hit with a 35 per cent tax rate when they die. I think this is a heinous level.”

ABI head of pensions Joanne Segars says: “The cashback is welcome but the Government should not limit it to people under the age of 75.”


Failed mortgage venture costs B&B £10m

Bradford & Bingley is writing off £10m to end its European joint venture with software firm Alltel, claiming the mortgage outsourcing deal has failed to deliver.Alltel and B&B entered an agreement to develop and sell new mortgage service systems two years ago. But B&B is bringing the servicing of its own borrowers back in house, […]

Pink Home Loans appoints new head of operations

Mortgage distribution and packaging company Pink Home Loans, a subsidiary of Skipton Building Society, has appointed Dev Malle, 34, as its new head of operations.Malle joins from UCB Homeloans and prior to that he had held various management positions with its parent company Nationwide Building Society. Malle is aiming to improve service levels to ensure […]

Ebenezer Scrooge

Entering the office of London-based IFA Scrooge & Marley, you find co-founder Ebenezer Scrooge sitting at his tall desk, quill in hand, reconciling commission payments.Scrooge, on first impression, looks every bit the general public&#39s impression of a miser. But a closer examination of his life story reveals that it is the regulator which has made […]

All eight pensions regimes to be simplified into one

IFAs have been stunned by the radical overhaull of the pensions regime proposed in the Government&#39s Green Paper which will see the eight existing tax rules replaced by a single regime. From 2004 current annual contribution limits will be replaced by a single indexed linked individual lifetime limit of £1.4m on an individual&#39s pension fund […]

US election

Capital Market Notes, November 2016 David Lafferty, chief market strategist at Natixis Global Asset Management, looks at the impact on markets and portfolios since the somewhat surprising outcome of the US election. Click here


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