View more on these topics

Standard Life calls for tax axe in bond funds

Standard Life says scrapping taxes on gains within insurance bond funds is the best way to stop the damage that Chancellor Alistair Darling’s capital gains tax changes would do to the insurance industry.

The company considers that taxes on gains within the bond funds should be scrapped but the 20 per cent tax on both income and gains on exit from the fund should be kept.

The Association of British Insurers is thought to have called on the Treasury to continue taxing income and gains within insurance bond funds at 20 per cent but for the exit taxes to be removed.

But Standard Life head of pensions policy John Lawson says that this solution would require complicated legislation to prevent investors turning income into gains.

He says: “The only way that you could do this is if the Government introduced a serious amount of anti-avoidance legislation because it is easily possible to turn income into gains. Removing the tax on gains within the fund gets around this.”

The Chancellor told Parliament last week that the effect of capital gains tax on bonds was a complex area with no clear answers but pledged that the Treasury would hold further discussions with the insurance industry to find a solution.


‘RDR must consider role of solicitors’

Sifa managing director Ian Muirhead is calling on the FSA to consider the Legal Services Act 2007 and its implications for advisers as part of the retail distribution review.Under the act, which is set to come into force in 2012-13, solicitors will be able to form alternative business structures combining other professions such as IFAs […]

Pada is urged to publish its calculations

Aegon is calling on the Personal Accounts Delivery Authority to publish the assumptions it is using to calculate charges.The firm says it is of strong public interest for Pada to publish models showing costs depending on how many people join, how much they invest and how long they invest for.It wants to know how Pada […]

Heads should roll at the FSA, says Vince Cable

Liberal Democrat shadow chancellor Vince Cable says Alistair Darling should be firing FSA chairman Sir Callum McCarthy after the regulator’s “systematic failure” over Northern Rock rather than increasing his powers.He says: “After the Treasury Select Committee report concluded that the FSA was guilty of ‘systematic failure’ over Northern Rock, it is baffling that the Chancellor […]

Trouble ahead - thumbnail

Pensions: trouble ahead?

The pace of change in the pension’s space has been little short of astonishing, and has left thousands of employers struggling to keep their pension policy compliant, and also on the right side of current best practice and governance. Many employers, and indeed many in the pensions industry itself, would like to see a period of no change during the next term of government. This would give all sides a chance to catch up and draw breath. 


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm