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Investec’s Dale tackles Meteor kick-out move

Investec Structured Products head of intermediary sales Gary Dale has criticised Meteor’s decision to drop an Isa option on its latest kick-out
plan pending HMRC clarification, saying firms withdrawing plans creates market unrest.

Meteor Asset Management held off offering an Isa option for its new top 10 kick-out plan until HM Revenue & Customs clarifies the implications of a recent Isa bulletin which warned some plans with a kickout feature within an Isa that could allow early maturity within a five-year term may
not qualify for Isa status. Dale says HMRC has confirmed the “Investec version” of its enhanced kick-out plan is Isa-compliant and so this option has not been withdrawn.

He says: “I do not agree with Meteor, I think companies that pull a structure just create unrest for no reason unless they have a real reason to be worried. We are assuming anything pre-March 30 is not going to be liable to changes retrospectively on the basis that we got written approval. While not cast in stone, that is the assumption we are making.

“Since March, we have launched tranche 16, which does not strike until May 5. If we do not get written approval from the Revenue before then, those plans will strike, so they may be at risk. If there is any tax to pay, then it will be disputed. Admittedly, I do not think we are going to get lots of business in that tranche as Isas.

“The Revenue can change its mind if it likes, as we have seen in the past, but we cannot chop and change product offerings on the basis of rumour.” Meteor Asset Management managing director Graham Devile says: “In light of HMRC Isa bulletins, it seems prudent at the current time to give this a watching brief


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