View more on these topics

Twin impact for advice

by Colin Jelley

Two developments announced by the Chancellor will have a significant impact for the UK financial services industry and underline the importance of financial advice.

First, Isas will be developed to meet the changing needs of savers. The Chancellor said he has concluded the review of Isas, which was promised when the regime was introduced in 1999.

The conclusion is that Isas have met their objective of extending the savings habit but that they want to build on this success.

As a result, the Chancellor proposes to make Isas a permanent feature of the savings landscape and also to make significant improvements.

The positive developments include guaranteeing an annual limit of “at least 7,000”, rolling Peps into the Isa wrapper and allowing transfers from cash Isas into stocks & shares Isas.

The first point suggests that there may be scope in future for contribution limits to be uprated in line with asset values.

Second, much to our disappointment, the Chancellor failed to heed feedback from advisers and announced a major change to the taxation of alternatively secured pensions. However, these changes, along with those from the March Budget, will create more opportunities for you to contact your clients to help them formulate effective tax and financial planning solutions.

Recommended

Defining points

There will be big changes in private, public and state pension provision

Court napping

The Government’s handling of the court challenge from occupational pension scheme members who lost their pensions goes from bad to worse.

Focus cuts operating loss by 0.4m

Focus Solutions has reduced its operating loss by 0.4m compared to the same period last year. The group has released its unaudited six monthly results for the period to September 30, showing a 3 per cent increase in total revenue – from 2.7m to 2.8m. It says first half trading is in line with expectations […]

Converting pension savings to a retirement income…

Since last year’s reforms to pension legislation, a significant number of retirees have chosen income drawdown over purchasing an annuity. Income drawdown is more flexible than an annuity. However, it also increases the likelihood that individuals won’t be able to maintain their income throughout their lifetime. In this short video, we explain the risks that […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com