Confusion continues to shroud IPAs this week as the PIA admitted it could not lay down regulations until the Treasury had explained full details of proposed tax reliefs.
In a consultation paper issued last week, the PIA says: “The potential impact and structure of IPAs cannot be fully considered until the wording of the proposed exemption is available.”
But the proposed details of the exemptions for stamp duty reserve tax on all collective investments will not be announced until the Budget on March 7.
Providers have expres-sed their frustration that the consultation paper has taken them no closer to understanding the practicalities for launching IPAs, with most companies quickly losing interest.
Threadneedle says it is keen on the idea of investment fund-based pension plans but is now unlikely to move into IPAs.
Communications director Richard Eats says: “So far, we have not spotted a commercial necessity to have an IPA. You will have to have a huge amount of additional record-keeping for a small amount of tax benefit.”
Gartmore head of retail pensions Nick Hodges says: “Even the PIA are reasonably uncertain of the ground. It should not have been involved anyway until the Treasury had developed the tax regime under which these will operate.”