View more on these topics

IFA hopes Snowdonia will be cash mountain

Family-based occupational pension schemes may not be the inheritance tax shelters that many advisers expect, experts are warning.

Technical Connection pensions consultant John Page says the Inland Revenue has hinted that the new alternatively-secured pensions will attract an IHT liability.

Under the Government&#39s current proposals, alternatively-secured pension holders will be able to pass on benefits to other non-dependent scheme members upon death.

The cost to the Revenue in missed IHT could be as high as £10bn a year from 2006. Revenue clarification is expected soon.

Page says as alternatively-secured pensions will only be open to those aged 75 and over, many observers expect transfers to non-dependants to be IHT-free and an attractive feature of the new regime.

With residential property able to be held within a pension wrapper from April 2006, the scope for IHT avoidance is massive.

It is expected that more than one residential property can be held within a pension plan as long as the asset is an investment and returns are not classified as trading profits.

Independent pensions consultant Ros Altmann says: “The £10bn loss of IHT income would dwarf the £7bn cost of means-testing and would primarily benefit the financially secure rather than those who most need incentives to save for their retirement.

Welsh national IFA Buckles is introducing a suite of multi-manager funds after securing commitments for the minimum £1.5m needed to make the launch viable.

The portfolios will form the core of Buckles&#39 investment proposition for clients outside the high-net-worth bracket.

The Snowdonia funds will include balanced, income and growth vehicles. Management of the funds has been outsourced to Mercator, Premier Asset Management and Rensburg respectively.

Buckles aims to raise £25m across the range in 12 months and is in discussions with a number of insurers to link the portfolios to their life bonds.

Cash committed for launch is predominantly from Buckles&#39 own clients, with it targeting Pep and Isa transfer business.

Charges are 5.25 per cent initial and 1.5 per cent annual. Upfront commission is 3 per cent with 0.5 per cent trail.

Chief executive Nigel Speirs says while IFAs will lose commission uplift from multi-tie arrangements, they will gain by maintaining or growing sales volumes through client loyalty.

He says although multi-manager funds are expected to become increasingly popular after depolarisation, his firm is committed to staying independent.”


Merger will move life industry further from its roots

It has been interesting to see yet another “oldie” – LIA executive member Brendan Power – coming out against the merger with Sofa (Money Marketing, September 30). It would be interesting to poll the former executive members as a group as there must be well over 100 of us now and we can claim to […]

OFT to examine indemnity claim

The Office of Fair Trading is looking into whether life offices have collaborated to raise indemnity commission discounts simultaneously. The investigation follows a complaint by Berkeley Morgan chairman Jon Pardoe, who has hit out at what he believes is price fixing by life offices. If IFAs choose to receive lump-sum commission upfront, life offices can […]

West Bromwich Building Society – Fixed Flexi Mortgage

Type: Flexible fixed-rate mortgage Fixed term: Two years Fixed rate: 5.65% Minimum loan: £25,001 Maximum loan: Up to 95% of valuation subject to a maximum of £500,000 Income multiples: Up to 3.75 times principal income plus second or three times joint Conditions: Capital repayments of up to 10% a year allowed without penalty, six months&#39 […]

AITC tells all trusts to be explicit on gearing

Investment trust boards have been told by the AITC to go public on their gearing policy to end friction in the marketplace. The AITC has written to members asking them to clarify levels of gearing in each trust. Under FSA rules published one year ago, boards have to fully disclose investment trusts with significant levels […]

How to balance bottom-up with top-down research in constructing multi-asset credit portfolios

In this short video, Azhar Hussain, head of global high yield at Royal London Asset Management, explains how his team balance bottom-up with top-down research in constructing multi-asset credit portfolios. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well as up […]


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 advice.

    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