View more on these topics

Standard says Govt figures wrong over lifetime limit

The number of people who will be hit by the £1.4m lifetime limit could be three times the figure stated in the Pensions Green Paper, warns Standard Life.

It says the Green Paper only refers to the 5,000 individuals with personal pensions of over £1.4m but does not mention executive pension plans over the proposed limit, which it estimates totals another 10,000 plans.

Standard says people up to or approaching the £1.4m limit will switch from equities to fixed interest as any returns over the limit will be hit by the one-third recovery charge and then taxed as income upon receipt. It estimates this could result in £30bn coming out of equities and into more secure investments.

The Inland Revenue says the taxation of pensions above the lifetime limit is tax-neutral, meaning people neither lose nor gain tax on funds over the limit. But Standard says this double-hit amounts to an effective tax rate of 59 per cent and argues that a neutral rate would be an overall hit of 47 per cent.

Senior technical manager John Lawson says: “People will say &#39why bother being in equities?&#39 We could see £30bn going out of equities and into cash. We want to see an equalising charge rather than a 59 per cent overall penalty. We think 47 per cent would be neutral.”


Advisers do not have to change business models, says Severn

IFA firms will not be obliged to change their business models as a result of the draft regulations published by the FSA in CP166, according to head of retail projects David Severn.Severn told delegates at Money Marketing&#39s Top 100 conference last week that while companies could decide to dramatically alter their business models, there is […]

Smee in call for test runs of FSA&#39s key facts regime

The FSA should test its proposed disclosure document in a series of pilot schemes to ensure that consumers will take to it before forcing the industry to embark on the costly exercise of implementing it, says Aifa director general Paul Smee.Speaking at Money Mark-eting&#39s Top 100 Summit in Croydon last week, Smee said he did […]

Eight IFA firms to take tech agenda to the providers

A leading group of IFA firms, including Positive Solutions, Towry Law and network Berkeley Berry Birch, are working together to take the IT agenda to technology providers.The association is forming a group strategy for “adviser-led technology” which it will take to various IT providers. It hopes eventually to challenge Origo&#39s domination.It is drawing up a […]

Jewel Of a Prize

Holly Golightly is clearly dazzled by the wad that Robert Clarke of Smith and Pinching Financial Services has scooped for winning the recent Scottish Equitable/Money Marketing Breakfast at Tiffany&#39s pensions competition.Clarke, who received the prize of a trip to New York and $1,000 to spend at Manhattan&#39s uber-chic jewellers Tiffany&#39s.Pictured right presenting the prize is […]

Developing your personal relationships – Webex

Read more 9amFinancial advisers and solicitors working together Presented by Ian Muirhead, director & chairman at Solicitors for Impartial Advice (SIFA) Listen to Ian’s expert insight and experiences of how financial advisers and solicitors can work together to deliver mutual benefit and enhanced client outcomes. Register here 10am Financial advisers and accountants working together Presented […]


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