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Late boost for open annuities

Open annuities could be set for an 11th-hour boost after HM Revenue & Customs revealed that inheritance tax will be payable on alternative secured pensions and probably on drawdown.

Open annuities, which have enabled annuitants’ remaining funds to pass to their estate on death, are expected to die out after A-Day when this advantage is taken away from them.

However, many commentators expect a late rush of interest in the product after the Revenue laid out its IHT rules.

Hargreaves Lansdown head of pension research Tom McPhail says: “If you are 65 now and considering going into drawdown, which faces the possibility of IHT, or an ASP, which will definitely face IHT, an open annuity might make more sense.”

Open Annuities chief executive Ken Wrench says: “The open annuity is an option for people with bigger pension pots but the window of opportunity will soon close.”


Cullen buys MoneyPlan

Stockport-based Cullen Financial Planning is set for further expansion after signing an agency agreement to acquire the clients and business from Rochdale firm, MoneyPlan Financial Services. The deal will see the transfer of over 1,000 corporate and private clients into the Cullen portfolio and raise its turnover to over 2.5m.

FSA hears no evil

Many financial services companies record conversations in the office as a standard practice and our story was based on recordings which were made in an office where a prominent sign warns that meetings and telephone conversations on the premises may be recorded.

Staff missing out on tax-free share schemes

Workers will miss out on 285m of tax breaks this year in employee share schemes, says IFA Promotion. The figure represents the amount of tax which could be saved if each of the estimate 865,000 currently in a savings related share option scheme invested just half the 1,500 investment permitted under the Government’s share incentive […]


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