View more on these topics

ScotProv Intl warns of life tax changes

Scottish Provident International is revamping its literature on trusts in a bid to warn IFAs about possible future changes to life insurance policyholder taxation.

The guides have been updated to draw IFAs&#39 attention to the likelihood of the dead-settlor rule being changed by the Inland Revenue.

In October, the Government ditched plans to revamp taxation on investment bonds following widespread anger from the industry.

The Revenue proposals included axing the 5 per cent annual withdrawal allowance for investment bonds.

But the Revenue still plans to investigate tax-avoidance schemes such as the dead-settlor rule, which allows tax to be avoided by claiming on a policy after the settlor&#39s death. This loophole can be exploited by placing policies in trust.

Scottish Provident International is offering IFAs a summary of key benefits for each of its trusts. This offers general guidance for brokers unfamiliar with trusts, those using SPI&#39s trusts for the first time and those who want to be up to date with possible rule changes.

Around four million, or 5 per cent, of all life policies in force are written under trust.

Technical development manager Bob Easton says: "The production of the new material is part of the company&#39s commitment to ensure that advisers and their clients receive the most practical assistance from Scottish Provident International.

"We pay particular attention to ensuring that advisers are well equipped to deal with the increasing technical nature of the business by offering technical advice over the phone, holding regular seminars and providing personal support.

"Giving regular advice on the use of trusts has given us an insight into the real issues faced by advisers."

Recommended

Abbey offers free shortfall software

Abbey Life is offering IFAs free computer software to calculate how much their client&#39s pension provision falls short of expectations. Abbey Life is distributing the disk, or CD-Rom, to IFAs through its local offices and to consumers through its salesforce. The software, called PC Retirement Shortfall Package, is Windows compatible. The disk provides a projection […]

Britannia Life tightens up drawdown training

Britannia Life is tightening its income-drawdown requirements for its broker consultants by forcing them to pass tough new exams. Seventy-six consultants sat an in-house exam after a three-month course. Two consultants failed the exam but nearly half passed with flying colours, achieving scores of 75 per cent or more. The two who failed will undergo […]

Clerical suspends portfolio bond pending legislation

Clerical Medical is suspending its highly personalised portfolio bond following the Chancellor&#39s pledge to close offshore tax loopholes. Draft anti-avoidance legislation is due to be published next month and Clerical Med ical believes that its bonds will be hit with a triple tax whammy. Highly personalised portfolio bonds are offshore investment vehicles which have an […]

Correspondent&#39s Week

Wednesday lunchtime, the Chop House by Tower Bridge. This is when Correspondent&#39s Week technically starts for me because it is when a remark by Polhill PR Terry Hepplewhite triggers a memory that had been mercifully erased from my mind earlier. This was the week when I had agreed, in some distant carefree past of about […]

Naming a reward programme

Six tips to get your reward programme name right

by Debra Corey, group reward director  Choosing a name isn’t easy. Whether it’s for your new puppy, a bundle of joy or your reward programme, a name determines a first impression – and often a lasting memory. When it comes to your reward programme, the name will determine how your employees feel about it even before […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment