As I penned in Money Marketing in my budget preview we have seen a chancellor consolidating his strong record. No bribery and no giveaways.
Firstly, I consider the lack of an announcement to raise the compulsoryannuity purchase age to 80, or higher, to be disappointing. We have clients using income drawdown who are knocking on the door of age 75 and who desperately wanted more flexibility.
The widening of the 10 per cent income tax band is welcome but we must bear in mind that the actual impact on the amount of income tax is paid is fairly insignificant.
There was nothing new in respect of Peps and Isas. Ironically the UK
stockmarket looks like a favoured market this year. This is at a time when IFAs are gearing up to use the relaxation of Pep investment rules to give
their clients greater diversification. My hope is that IFAs don't lose the impetus for diversification.
I was disappointed not to see the raising of the maximum property values for housing investment trusts, particularly as we are now witnessing the launch of the first housing investment trust from Williams De Broe.
The increase in the childcare tax credit to a maximum of £200 per week will, I think, lead to many more registered childminders. These childminders
will, in my view, provide more potential stakeholder clients.
The new R&D tax credit could prove a boost to UK healthcare companies and
therefore those funds investing in them. Healthcare funds are receiving a
lot of Isa money.
On a personal note I am disappointed that paid paternity leave does not come in this year – I'll be a father in September.