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James Dalby – Senior Analyst Bates Investment Services

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&#39t 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&#39ll be a father in September.


Chancellor raises inheritance tax threshold

The inheritance tax threshhold has been raised to almost a quarter of a million pounds. The Chancellor of the Exchequer Gordon Brown told the House of Commons this afternoon the new ceiling will be £242,000. Brown says the move means 96 per cent of estates will now be exempt.

Bank of England leaves rate unchanged

The Bank of England monetary policy committee today voted to maintain the base rate at 5.75 per cent. The most recent change was a reduction of 0.25 per cent to 5.75 per cent on February 8, 2000.

Revenue renews IPA commitment

The Inland Revenue has renewed its commitment to launching Individual Pension Accounts on April 6 despite industry concerns that it will not have sufficient time to develop appropriate products.Pension experts say that because of the delayed publication of the final regulations for the new pension vehicle, they will struggle to develop a product in time. […]

CIVs to be sold through IFAs

The Chancellor has announced plans to launch a new community investment vehicle aimed at encouraging investment into Britain’s most deprived areas.There will also be range of enhancements to Venture Capital Trusts and Enterprise Investment Schemes, as well as an extension of the Film Tax Relief scheme.The new CIV is one of a number of possible […]

Tax year-end planning with the family

From the Technical team at Prudential Let’s face it, many aspects of financial planning involve a lot of technical detail. At our face-to-face events, we’ve had great success bringing these technical topics to life through the use of practical case studies. Meet the family Prudential’s Planning Matters hub brings together a fictional family and explores […]


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