View more on these topics

‘IHT rules will force pension holders back into annuities’

HM Revenue & Customs’ proposals for how inheritance tax will apply after A-Day will effectively force people back into annuities just months after removing the obligation to buy them, claims Standard Life marketing manager John Lawson.

Individuals opting for alternative secured pensions or drawdown look set to trigger IHT bills on their remaining funds on death aged over 75.

The proposals have been anticipated since Paymaster General Dawn Primarolo’s March announcement. Consultation closes on September 30.

Lawson says it is harsh that this tax grab is likely to even apply between spouses.

He says: “This rule essent- ially forces people to buy an annuity because the tax treatment of annuities will be preferable. It is extreme because if you are drawing the maximum 70 per cent income, you are not depriving your estate.”

However, it could take test cases to figure out how asp- ects of the IHT proposals will apply in practice, according to Scottish Equitable pen- sion development manager Rachel Vahey.

Vahey says: “Individuals in drawdown will have to prove they are not trying to pass on wealth and test cases are very likely because of the subjective nature of the rules.”

Recommended

Mortgage Express chief joining GE

Mortgage Express head of sales Cammy Amaira is resigning to join GE Consumer Finance Home Lending. He has yet to confirm his start date at GE but will be joining the team in the unsec- ured market on home improvement loans. Amaira has been at MEX for seven years.

Grey’s Locke in move to Aegon

Bright Grey commun-ications manager Mark Locke is leaving to join Aegon’s PR team on August 10. Locke will continue to look after protection as well as employee benefits at Aegon.

Funds seeking to benefit from China’s revaluation

China has bowed to US pressure and revalued its currency, with fund managers expecting their funds to benefit. The renminbi, which is colloquially known as the yuan, will be measured against a basket of currencies rather than pegged against the dollar. The move is expected to make Chinese exports marginally more expensive while helping exporters […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com