View more on these topics

Investors ignored: Mark Dampier, Hargreaves Lansdown

This budget was always likely to be centred on two items, the improvement of public services and the raising of tax to provide it and so it proved to be. From a pure investment/savings point of view, investors were ignored.

Indeed the increases in the tax is hardly an encouragement to save, especially those with lower earnings. For those with large pockets the rules relating to takeovers and mergers of VCTs, which now means investors can keep their tax shelter, is excellent news. This should mean that VCTs will become more marketable in the “2nd hand market”. At present VCTs are too small, making realisation more difficult. By allowing mergers etc this could help them create much larger VCTs which in turn should make them more attractive for institutions to buy into. Increasing liquidity in this area shows that their investments will not just be dependent on tax relief to make them more attractive.

Disappointed to see news on the children&#39s savings scheme and no reform on the tax credit for Isas on which dividends will be abolished in 2004, thus making this savings vehicle less attractive for just the asset class that investors should be buying into – UK income funds. These provide potential for retirement and income growth – a prime requirement for those coming up to and at retirement.

Mark Dampier is head of research at Hargreaves Lansdown

Recommended

Charities

Three main changes have been proposed. 1. Relief for gifts of Real Property Where an individual or company wishes to give land or buildings to charity, the Government proposes there will be an income or corporation tax relief for such donors. The relief will be available for gifts of freehold or leasehold property, which a […]

Nationwide bond goes globe trotting

Nationwide has unleashed another issue of its guaranteed equity bond, which is linked to four stockmarkets over a six-year term.The bond returns the original capital to investors whatever happens to the FTSE 100, Nikkei 225, Eurostoxx 50 and S&P 500 indices. The original capital is exposed equally to the indices, which were chosen to provide […]

New exodus on way as Equitable cuts again

IFAs believe Equitable Life&#39s decision to slash terminal bonuses by 4 per cent will lead to a renewed exodus of policyholders despite the imposition of an increased market value adjuster of 14 per cent.They question Equitable&#39s rationale for the new restrictions, as a letter sent to policyholders claims the company&#39s position has improved. It says […]

Unfair treatment

The proposed alteration of the rules governing the sale of financial products gives cause for concern.We do not feel it is fair, just or reasonable to suggest that independence of judgement/advice can only be achieved if paid for through fees.Qualification by examination, robust monitoring and regulations, together with indemnity insurance, capital adequacy requirements and continuing […]

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