HM Revenue & Customs is being inflexible to the point of authoritarian by forcing people who reach 75 before A-Day to buy an annuity, says tax and business advis- ory group Vantis Financial Management.People whose 75th birthdays fall after A-Day on April 6, 2006 are not required to buy an annuity. Vantis poionts out that if an annuity is purchased and the holder dies, the entire pension fund is lost. People who do not purchase an annuity can, in some cases, pass the money indirectly to their family through their pension funds. Director Mike Pole says, due to their date of birth, some people could face a tax pen- alty of up to 40 per cent of their pension assets. Pole says: “The 75 age bracket does seem to have been overlooked by the HMRC. We understand that there has to be a cut-off point but the system does seem unfair. “If one client reaches 75 on April 4 and the other on April 6, one is set in a much better position than the other. While HMRC seems to be relaxing the rules, it seems to be inflexible to the point of authoritarian on this particular point.” Unity Independent Financial Planning company director Jon Willis says: “The problem is where do you draw the line? It is unfortunate for the people who miss out but there has to be a cut-off point.”
The Government must move quickly to find a replacement for David Blunkett as secretary of state for Work and Pensions in order to maintain industry confidence in pension reform.Industry commentators are dismayed at the timing of Blunketts resignation, coming less than a month before the Pensions Commission is due to present its second and final […]
Skandia Investment Management has brought out a global property fund which will be managed by property investment specialist La Salle Investment Management.
F&C will not be outsourcing former Isis operations to Mellon despite agreeing in principle a year ago. The firms failed to agree on contracts.
New Star has established a unit trust fund of funds that aims for growth and an estimated net income of 3.5 per cent a year while preserving investors original capital
The world’s strongest currency in November was not the US dollar, despite the greenback rallying 3.5% against the euro, 8.7% against the Japanese yen and over 8.6% versus the Mexican peso and the Turkish lira up to yesterday’s close. The strongest currency last month was sterling, which had strengthened 2.2% versus even the mighty US […]
- Top trends
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
Three advice firms have stopped giving pension transfer advice following work by the FCA over the future of the British Steel Pension Scheme. A statement this afternoon details the FCA’s “information gathering exercise” to identify the firms that have been most active in advising people to transfer out of the scheme. The regulator got information from […]
The FCA has launched a consultation on its approach to authorisation and competition, which will be open to responses until March next year. Following the launch of the FCA’s mission in April, the approach documents are the second and third in a series of papers explaining how the watchdog tackles regulation. The first document, the […]