View more on these topics

VCTs are the sole encouragement for investors

Spending appears high on the agenda for the Chancellor but encouraging savers and retail investors has been avoi-ded, other than the pension announcements.

Many of the measures that should be put in place to encourage the retail investor were announced before the Budget. By doing this, the Chancellor avoided bringing negative news into a very political Budget speech.

The only positive was con- centrated on what is traditionally and will continue to be a specialist market – VCTs.

The markets have been hazardous, to say the least, discouraging investors from making decisions while the bear market has compounded the difficulties that those raising capital for new VCTs have faced. We are well into the first year of the recovery and seeing muted signs of positive investor sentiment so the changes to the VCT tax incentives should kickstart a lacklustre sector.

I am disappointed in the lack of incentives and encouragement for retail investment and the removal of the tax credit and reducing the Isa allowance, indirectly increasing revenue for the Government.

The Government&#39s mantra is to place responsibility on the individual to make provision for their future but they are not only discouraging this,they are also essentially putting off what will be a huge issue in future years.

Recommended

Dead cert

A literary birdy has drawn the Diary&#39s attention to Tom Stoppard&#39s play, Rosencrantz and Guildenstern are Dead. It seems that the part of Polonius was originally played in the play&#39s premiere at the Edinburgh Fringe in 1966 by a thespian named Walter Merricks, curiously sharing his name with the FOS chief ombudsman. The Diary has […]

HL&#39s Fof operation breaks £100m barrier

Hargreaves Lansdown&#39s fund of funds operation has hit £100m of assets under management.The assets are spread across the operation&#39s three Fof &#45 HL&#39s ultimate managed, special situations and income & growth funds.Fund manager Lee Gardhouse says: “This gives us critical mass to both reward those managers whom have grown with us whilst ensuring that we […]

Eagle Star cuts annual bonuses

Eagle Star is scrapping the reversionary bonuses on its conventional with-profits pension policies this year, Zurich has announced.But the company will pay a reversionary bonuses of 0.25 per cent for conventional with-profits life policies. Eagle Star&#39s new annual bonus rate for its series 5 unitised with-profits fund is 1 per cent for life policies and […]

Shortfalls down from £11k to £8k

Independent insurance analyst Ned Cazalet is continuing to predict that 90 per cent of mortgage endowment policies will fall short despite the recent upturn in markets. But in his latest report on with-profits and solvency, Cazalet admits that the average shortfall has fallen to £8,000-£9,000 from £11,000 last year and total shortfalls have fallen from […]

Trusts: Easier than you think?

Protection providers often extol the benefits of placing plans in trust. The advantages for clients are widely recognised and numerous – inheritance tax mitigation, avoiding probate delay, controlling claim proceeds, and so the long, familiar list continues. Yet, dismissed as unnecessary form-filling, or simply viewed as irrelevant in the context of a mortgage sale, less […]

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