Adviser Smith & Williamson has criticised Standard Life’s attempts to plug the SSAS IHT “loophole”.Standard Life has accused Axa of abusing a SSAS loop-hole which enables small businesses to pass on assets tax-free and in theory allows family members to set up schemes to bypass IHT. The Revenue has vowed to clamp down on any abuses. But Smith & Williamson national head of pensions Mike Fosberry says SSAS concerns are misplaced and that clients in scheme pensions have to pay more tax than those in other forms of income drawdown. Fosberry says under a scheme pension, the individual has to get a known level of pension entitlement which would be subject to tax on payment, while under alternative forms of income drawdown, an individual is not required to take any income at all. He says: “From the point of view of the Revenue, therefore, the scheme pension provision must be rather more attractive as it ensures collection of tax which might otherwise be deferred until some point in the future.” Standard Life head of pensions policy John Lawson says: “We are not asking for scheme pensions to be scrapped and we accept they are valid. But clients should be warned they might not be able to pass on residual funds without IHT.”
Aifa and the Institute of Financial Planning are to hold a series of one-day courses designed to help advisers move to a fee-based model. The first of the courses, run with FP Advance, will take place on September 14 at the Mermaid Conference & Events Centre in London.
I want to provide my employees with a competitive benefits’ package. What can IFA do to help me and how can I make sure there is minimal disruption to my business?
The issue is having wider repercussions as the consumer benefit of the document in its current form is now being called into question. Aifa director general Chris Cummings says the OFT’s decision has sent a clear message that the menu has been skewed against advisers since it was set up when depolarisation was introduced last […]
UK investors remain positive despite retail sales volumes for the latest quarter falling by 17 per cent, according to Feri Fund Market Information.Feri’s latest UK Fund sales report, the Pridham Report, finds that UK mutual funds did not suffer the cull seen in other European markets. The UK saw an increase in repurchases during May […]
By Mark Martin, Head of UK Equities at Neptune Investment Management Recent UK GDP figures indicated that the economy is in good health, with a 0.5% rise in GDP in the final quarter of 2015. Whilst the GDP growth rate fell from 2.9% in 2014 to 2.2% in 2015 as a whole, this expansion – […]
- Top trends
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
Eight exchange-traded funds that prioritise environmental and social targets entered the market in May alone, according to the London Stock Exchange, driving record levels of flows into ESG strategies. LSE says 2018 has been a record year for passive funds prioritising socially and sustainable companies. A total of 31 ESG ETFs holding £3.97bn in assets […]
Retirement product provider Just Group has launched a digital platform that will offer transfer value analysis services. Just Group is starting the wholly-owned HUB Pension Solutions to provide support services for trustees and scheme sponsors. The launch of the new services comes two months after the FCA’s policy statement on defined benefit transfers in March. […]
A law firm is set to issue more than 30 cases against Liberty Sipp in what it believes is the largest number of claims issued against the provider to date. Anthony Philip James & Co alleges the Sipp provider is responsible for the misselling of Sipps between 2011 and 2013. It says it has up […]