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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.

In the Budget statement the Revenue has published draft legislation to implement the Stamp Duty Reserve Tax exemption for IPAs and says it will introduce the necessary legislation to Parliament soon.

As widely tipped, fund managers will have a choice of three methods to operate the new exemption.

They can offer unit trusts and Oeics which are restricted to holdings within IPAs, provide separate share classes within Oeics which are restricted to IPAs or operate unit trusts with a mixture of IPA and non-IPA unit holders.

Zurich Scudder Investments, formerly Threadneedle, communications director Richard Eats says: “We&#39re quick but we&#39re not that quick. Normally about six months would be the normal time span to get a product like this to market and get our records prepared.”

Hargreaves Landsdown investment adviser Ben Yearsley says: "Within two to three months there will be plenty of choice out there. Product providers can move with quite astonishing speed when they want to.


Implications of MFR changes

The Chancellor&#39s Response The Chancellor in his Budget has said that the Government intends to take forward all the recommendations made by Paul Myners. This includes the abolition of the Minimum Funding Requirement. Other consequences are: Once the principles for institutional decision making are agreed (following further short consultation) pension funds and in due course […]

£7k Isa limit gets go-ahead to 2006

Chancellor Gordon Brown has gone ahead with plans to extend the £7,000 limit on Isa investments until 2006, as announced in November&#39s pre-Budget report. The £3,000 maximum limit for cash will also be retained. By 2006, Brown said savers will have gained a total of £700m in tax relief from Isas.

Scottish Friendly Assurance cuts bonus rates

Scottish Friendly Assurance is reducing bonus rates on its with-profits plans, blaming low inflation and low interest rates.The reversionary bonus for 2001 is down 0.75 per cent to 1.75 per cent of the sum assured plus 4.25 per cent of previously undeclared bonuses, from 2.5 per cent plus 5 per cent in 2000. The reversionary […]

Axa Sun Life cuts bonus rates

Axa Sun Life is cutting bonuses in the Axa Equity & Law With Profits Fund.Both the low-cost homebuyers endowment bonus rate and the investment bond bonus rate were cut by 0.5 per cent to 5 per cent for 2001 from 5.5 per cent in 2000.The personal pension bonus rate was cut by 0.75 per cent […]

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Guide: Johnson Fleming produces auto-enrolment checklist

For a job as big as managing the auto-enrolment changes, it’s important to know what has been completed and what still lies in front of you to give you the reassurance that everything is in hand. Getting the planning and project management right at the outset can help you see the path ahead and ensure everyone knows their roles and responsibilities. To help with this, Johnson Fleming has produced a checklist outlining every step that needs to be taken when preparing for auto-enrolment.


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