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Make advice an employee benefit, say actuaries

The Institute of Actuaries is expected to urge employers to make financial advice an employee benefit to enc-ourage workers to plan for their future this week.

The proposal would open up the debate on whether advice should follow the US model and be tax-free.

Money Marketing understands that the Institute of Actuaries will this week call on employees to think of a financial healthcheck in the same way as a medical check-up as part of the growing range of emp-loyee benefits.

But at present advice paid for by employers is regarded as a benefit in kind and employees are taxed on it, leading industry figures to call on the Government to give tax concessions for advice given as an emp-loyee benefit.

IFAs also believe that advice as an employee benefit model could be a way around providing advice under the stakeholder 1 per cent cap.

Syndaxi director Robert Reid says: “This sounds like the nub of a good idea. Despite what the Govern-ment says, we are a long way from 401(K), where the Americans can get tax relief on advice.”

Scottish Equitable business development manager Steven Cameron says: “The Government should make sure the tax conditions for providing advice as an employee benefit are favourable.”

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