View more on these topics


This year&#39s pre-Budget speculation was focused mostly on how the Chancellor would pay for the expected increased expenditure on the National Health Service. National Insurance was a big favourite and those who &#34backed&#34 this were proved substantially right. But it was not just National Insurance changes that the Chancellor told us about. What follows are the main changes proposed that we believe will be of greatest interest to financial advisers:

  • Increases to National Insurance from 2003 across the board &#45

including a 1% rate for employers, employees and the self-employed without limit on all earnings above the upper limits

  • An increase in the CGT annual exemption to £7,700 per annum
  • Changes to capital gains tax business assets taper relief
  • The increase of the IHT nil-rate band to £250,000
  • Some further changes removing anomalies on the taxation of assignments of life policies
  • Reduction of corporation tax for smaller companies

    Despite the apparently comparatively “simple” nature of the proposed Budget changes, taxation as always is a subject that attracts much interest and having a good understanding of proposed changes to the system is essential to any person or business developing financial products or delivering financial solutions. In the light of this it is important, in our view, to ensure that you are equipped to have sensible discussions with your key clients and distributors (as appropriate) on key taxation issues.

    We believe that, even where taxation changes have not been made, there is still merit in using the Budget (and the national &#34tax advertising campaign&#34 that surrounds it) as a catalyst for reviewing the affairs of clients with a view to improving their tax and financial wellbeing. At a time when there is significant competition to provide financial services to clients, we hope and trust that this Budget Bulletin will help you to do so in a way that will strengthen your relationship with them, enable you to create new business relationships with new business clients and to deliver more effective solutions.

    The aims of this Budget Bulletin are:-

    • to explain the Chancellor&#39s main proposals
    • to identify what those proposals mean
    • to review the tax system as it is and will be for the remainder of this tax year
    • to look ahead, where appropriate, to known or likely future changes in taxation
    • to consider the significant changes to taxation that, whilst not proposed in this Budget, will come into effect shortly, and

    All the information and views given in this Bulletin are presented for general consideration only. Accordingly, Technical Connection can accept no responsibility for any loss occasioned as a result of any action taken or refrained from as a result of the contents hereof. Readers and clients of readers must always seek independent advice before taking or refraining from taking any action.

    The contents of this Budget Bulletin are based on the proposals put forward by the Chancellor in his Budget speech. These need to be approached with caution as the details may change during the passage of the Finance Bill through Parliament.

  • Recommended

    Merrill Lynch – FTSE 100 Stepped Growth & Income Investment

    Wednesday, April 17 2002 Type: Capital protected bond Aim: Income or growth linked to the FTSE 100 index Minimum-maximum investment: £7,000-no maximum Term: Seven years Guarantee: Capital returned in full provided the FTSE 100 does not fall by more than 39% Return: Up to 170% growth at end of term or 8% gross a year […]

    MGM and Pavilion in fund management deal

    MGM Assurance has penned a deal with Pavilion Asset Management which will see Pavilion managing MGM&#39s £1.4bn in assets.The agreement also sees MGM&#39s investment director Gregor Logan joining the Pavilion Board as chief investment officer. The new combined fund management team will operate out of MGM&#39s City offices and comprise the majority of both existing […]

    Employer NI liability increased by 1 per cent

    Employers face a 1 per cent increase across the board in their National Insurance liabilities in the next tax year. The increase means from next April employers will pay 12 per cent National Insurance contributions.

    BDT Invest establishes trust

    BDT INVEST THE ESTABLISHMENT INVESTMENT TRUST Type: Investment trust Aim: Growth by investing in bonds, equities and cash Minimum investment: Subject to negotiation with stockbroker Maximum investment: No maximum Investment split: Cash 10%, bonds 40%, equities 30%, other 20% Types of share: Ordinary Isa link: No Pep transfers: No Redemption date: None Charges: Annual 1% […]


    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