View more on these topics

Phil Wickenden: Complex IHT regime offers opportunity

iht regimeGiven that we live in such an advanced society, one would hope that certain things would be easier than they are. Think separating two flat pieces of Lego, taking price stickers off things or opening cling film without a fit of wrap rage.

The Office of Tax Simplification is doing its bit to help make things easier. Granted, its review of inheritance tax, with its aim of simplifying the system, will not solve any of the issues above.

But it does provide the only certainty as to what changes in this area might actually look like beyond supposition.

The Resolution Foundation has recommended the current IHT regime is scrapped entirely and there is a move to a lifetime receipts-based tax system. That said, it is felt major reform is fairly unlikely while we live in a perma-state of Brexit uncertainty. The fact there is simply insufficient government resource cannot be overlooked.

Whatever the outcomes, an intergenerational approach to financial planning expands opportunities and defends against asset loss. The one who advises on efficient wealth preservation and transfer, and who involves the whole family in the discussion, has a much greater chance of success. The family is a great referral network.

Estate planning and IHT reduction are important contributors to achieving that outcome. They are complex and thus less likely to be disintermediated. This complexity creates challenges for advisers – but herein lies the opportunity.

Our latest research with advisers and consumers into IHT and estate planning encouragingly reveals the growing stated importance of them to advice propositions and the anticipation of further growth (see charts). Yet engagement is still far lower than it ought to be.

Advisers say that over a quarter (28 per cent) of their core client base should have seriously considered IHT and estate planning but have not yet.

Phil Wickenden is managing director at Cicero Research



Standard Life Aberdeen begins share buyback after Phoenix deal

Standard Life Aberdeen has begun buying back shares from investors after selling its life arm to Phoenix. According to a stock exchange announcement this morning, SLA has purchased nearly 770,000 ordinary shares from Merrill Lynch International at an average price of 318p a share, costing SLA around £245m. The announcement adds that SLA intends to […]


Hargreaves Lansdown boss pockets £2.5m pay packet

Hargreaves Lansdown chief executive Chris Hill has received a pay package of £2.5m in the year ending 30 June 2018 made up of a combination of shares, bonuses and pension payments. Following his first full year leading the company, Hill was given a base salary of £620,000, following a 2 per cent increase in executive […]


Dennis Hall: Why we are reducing portfolios to just one fund

If you agree with the premise that funds with high charges generally underperform those with low charges, then you must also agree a portfolio that accrues high costs will generally underperform one with lower costs. And if you accept this, the obvious conclusion is to hack away anything that increases that cost. Switching from higher-priced […]


Graham Bentley: Absolute return has had its day

Do you believe a return in excess of deposit rates, with no risk of loss and low charges, is a realistic investment aspiration? Returns are simply compensation for an investor’s loss of use of the money, and the risk of not being compensated is inherent in the transaction. Debt markets work on the basis that […]

Men and fatherhood, sex equality,

Let’s talk about sex (equality)

Tracey Dickson – Marketing Consultant It’s been 100 years since women were given the right to vote in the UK, and we’ve seen a lot of stories in the press recently about this triumph and the ongoing campaign for equality for women – both in wider society and in the workplace. Today something else in the […]


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 thought leadership.

    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