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Scottish Life points IFAs to &#39overlooked&#39 DC strategy

Scottish Life claims that a largely unnoticed aspect of pension legislation which came into force last April 6 could present IFAs with good business opportunities.

Under the new defined-contribution regime, there is no differentiation between self-employed and employed earnings where employers wish to contribute to an employee&#39s personal or stakeholder pension scheme.

This means employers are allowed to consider both the salaried and self-employed earnings of an individual employee when paying a contribution to a group personal pension scheme. Previously, they were only allowed to consider employed earnings.

Scottish Life claims the change provides an opportunity for IFAs to talk to relevant clients and add real value.

It says the new rule is especially useful for a company director who also has Schedule D consultancy earnings, as employer contributions can be claimed as a deduction for tax purposes in the company&#39s accounts.

Head of communications Alasdair Buchanan says: “With major changes to the rules last year, it has been difficult for advisers to look at every detailed change. This rule appears to have been overlooked by many but it can be very useful when advising clients who have both employed and self-employed earnings.”


Matrix Private Equity – Matrix Enterprise Fund

Wednesday, March 20, 2002Type: Enterprise investment schemeAim: Growth by investing in unquoted companiesMinimum investment: Lump sum £25,000Opening/closing date: December 1, 2001/March 31, 2002Charges: Initial 5%, annual 2.5%Commission: Initial 2%Tel: 020 7292 0872

Contracting-out choice shifts from pivotal age

Product providers are moving away from using pivotal ages for contracting-out decisions, believing all policyholders should review their position in light of the new second state pension and lower investment returns.Axa says men aged 56 and women aged 49 should be contracted in but believes people should hold off from making a decision as the […]

IFAs can pass on the mortgage business

New mortgage outsourcing brokerage firm Paradigm Consulting is to target IFAs after research revealed that about a third of intermediaries may pull out of the market because of increasing regulatory costs.The MCCB-registered firm is looking for IFAs who do not see mortgages as a core service but who do not want to risk losing life […]

ABN Ambro reinvents Isa cafe

ABN Amro is to relaunch its Isa café on April 5, enabling last minute investors to deploy their Isa allowance in style. The café will be set up at ABN Amro&#39s City offices at 82 Bishopsgate. However, for IFAs outside London, the firm is teaming up with M&G, Hemderson, Cofunds, Aberdeen, New Star and Invesco […]


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