View more on these topics

Royal London calls for review of capital gains change as savers could take hit

The Government may have underestimated the impact of a change in corporation tax rules on individual savers, according to Royal London.

The November Budget wound down the ‘indexation allowance’ for capital gains from 2018, aligning the treatment of companies with individuals, but meaning that investment growth in line with inflation would now be subject to tax.

Since the measure applied to corporations, the Government said it would have “no impact on individuals or households”, but Royal London claims that three million of its policyholders and an estimated 11 million savers in total would be hit, and the total bill could be around £250m.

Royal London is now calling for a review of the rules, after seeing a standardised letter responding to public enquiries about the change, in which the Government acknowledges it will likely have a “small” impact on savers.

Royal London director of policy Steve Webb says: “MPs have clearly been misled by the information which the Treasury has put out on this issue. Far from having ‘no impact’ on households, this stealth tax will hurt around 11 million savers.   If MPs had been told this from day one there would have been much more opposition to this measure.  There is still time for Parliament to scrutinise this new tax and stand up for small savers up and down the country”.



IA calls for ‘urgent’ review of Key Information Documents

The Investment Association has called for an “urgent” review new Key Information Documents issued to investors. Since January 1, Priips legislation has meant advisers now have to publish a stand-alone, standardised KID to their client including performance scenarios, risks, and the total cost of products. Yesterday, however, the FCA gave advisers licence to go further […]

Aviva plans to phase in new platform after migration blackout

Aviva has pledged to have the full version of its new platform up and running imminently after a blackout period over the weekend. The provider scheduled five days of downtime from last Wednesday through to Monday, but advisers have complained to Money Marketing that the platform was not accepting applications or running quotes as of […]


Fool’s gold: How Mifid II has revealed the true cost of funds

Mifid II reveals true cost of ‘cheap’ funds Investors may have been paying a third more in transaction costs than previously thought as new European regulation sheds a fresh light on the lack of transparency in fund fees. Advisers and platforms are quizzing fund groups on the nature of their transaction cost calculations as many […]

Health - thumbnail

Healthcare predictions for 2015 from Jelf Employee Benefits

The continuing fall-out from the Competition and Markets Authority’s (CMA’s) review, the rise of the private GP and digital engagement will be the primary focuses in the private healthcare industry during 2015, according to Iain Laws, managing director, healthcare and group risk, at Jelf Employee Benefits.


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. So Gordon Brown played around with tax on dividends, using a short term means of thinking that no-one would notice or through which be immediately affected. How many private sector pension scheme providers think differently? He’s now apparently an intellectual on a public sector pension.

    We know that reinvested income and compounding provides the bulk of all returns in any asset class. So taxing today just moves the bubble in the carpet, a bit like doing a deal with Stalin or Hitler.

    Nice piece of paper being waved around but ‘oh bu@@er’ a few years later.

Leave a comment