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Long-term shareholders to suffer under new CGT rules, says Heartwood

Many basic rate tax payers who are long-term shareholders will be penalised under the Chancellor’s introduction of a flat rate 18 per cent capital gains tax, says Heartwood Wealth Management.

Heartwood says one of the groups most affected will be pensioners who have built up share portfolios over a long period of time in order to fund their retirement.

According to Heartwood, a basic rate taxpayer who has a portfolio of £300,000 with long-term gains ranging from 1982 would normally pay 9 to 11 per cent tax on the net gains. From next year that will rise to 18 per cent.

Heartwood Wealth Management head of tax solutions Neil Edwards says: “The potential impact of this change to business owners and employee share scheme members has been well publicised, but unless the Chancellor modifies his plans there will be a considerable number of ordinary long-term investors who will lose out too.

“In the short-term investors should be wary of making any immediate or rash decisions. The details have yet to be published and until there is some certainty it would be foolhardy to make radical changes to existing investments based purely on an announcement. Even so, it is likely that ordinary investors will need to review their portfolios and consider taking action to use the advantages of the current rules before April 2008.”


Standard is still on the lookout for deals

Standard Life UK financial services chief executive Trevor Matthews says the company is not ruling out further acquisitions after its failed Resolution bid.He says he is disappointed the deal did not work out but stresses Standard’s core focus is on organic growth.Matthews says: “I am sorry it did not work out with Resolution but it […]

Pada warned to be up-front on potential charge increases

Aegon says the Personal Accounts Delivery Authority must tell savers in personal accounts that charges could rise in the future or risk not treating customers fairly.It says the running costs of personal accounts will be affected by differences between actual and assumed employer and employee behaviour.Aegon says unknown factors, such as whether opt-out rates will […]

The train now arriving at the platform

The fund supermarket industry is on track to provide IFAs with a new fleet of tools and services to get clients to their destination as attention focuses on distribution, says Colin Tipping, client director of Barclays Global Investors iShares

To be and not to be – Multi asset investing with conviction

At Pictet Asset Management we believe active management of asset allocation is the most important generator of returns. What is not to be in our portfolio is just as important as what is to be because good performance is determined as much by the assets you avoid as by those you hold. The FP Pictet Multi Asset Portfolio managers are not wedded to any particular […]


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