Explore the week’s top stories from Money Marketing!
This week’s highlights centred on the Spring Budget, featuring the Chancellor’s announcement of the new British Isa and the abolition of stamp duty and holiday let tax breaks. Dive into the details below:
New British Isa announced by chancellor
Chancellor Jeremy Hunt introduced a new British Isa in the Spring Budget, offering an extra £5,000 tax-free allowance for UK retail investment, alongside the existing £20,000 Isa limit.
Aegon’s Steven Cameron emphasised its appeal for those maximising their Isa allowances and stressed the need for a clear definition of UK investments within the British Isa.
Stamp duty and holiday let tax breaks abolished
In the Spring Budget, the Chancellor announced the abolition of stamp duty relief and holiday let tax breaks.
Jeremy Hunt informed MPs that the stamp duty relief for multiple property purchases is being eliminated due to frequent abuse. He stated that this tax break has not demonstrated any evidence of encouraging investment in the private rented sector.
Advice ‘should cost taxpayers nothing’ says MP
At Dynamic Planner’s Scaling Success conference, Harriet Baldwin MP, Chair of the Treasury Select Committee, stressed the importance of free access to financial advice.
She noted that while conference attendees possessed valuable expertise, many constituents face financial barriers preventing them from accessing such assistance.
Tony Wickenden: Could Budget bring change to High Income Child Benefit Charge?
Tony Wickenden examines potential reforms to the High Income Child Benefit Charge (HICBC) following a paper by the Tax Law Review Committee of the Institute for Fiscal Studies.
He explains the intricacies of the HICBC and offers insights into potential planning strategies for taxpayers affected by the charge.
AJ Bell chief executive Michael Summersgill criticised the Treasury’s British Isa proposal, labelling it “ill-conceived” and unlikely to achieve its goal of boosting investment in UK companies.
Chancellor Jeremy Hunt had announced the plan during his Spring Budget speech on March 6. Summersgill said the aim of increasing investment in UK companies was commendable, but “the British Isa is simply the wrong way to achieve it”.
Ongoing advice review may lead to ‘remedial costs’ for Quilter
Quilter has acknowledged that the Financial Conduct Authority’s ongoing advice review could lead to the company incurring “remedial costs.” However, they emphasised that it is currently “too early to quantify” the potential expenses.
The regulator has contacted 20 firms, including Quilter, seeking information on ongoing servicing. The FCA expressed concerns in the letter regarding clients being charged even after advice has been provided.
State pension will be worth £13,000 if triple lock is retained
According to analysis by AJ Bell, the UK state pension could surpass £13,000 a year by 2030 if the ‘triple lock’ remains in place. The triple lock guarantees annual increases in the state pension, determined by the highest of average earnings growth, inflation or 2.5%.
Reports indicate that both Labour and the Conservatives are expected to reaffirm their commitment to this policy in their upcoming election manifestos.
FCA prioritises criminal case against WealthTek
The Financial Conduct Authority is focusing on criminal proceedings against DFM firm WealthTek and its principal partner, John Dance. The High Court granted a 12-month pause in the regulator’s civil case against Dance and the Newcastle-based IFA firm. The civil case involves serious regulatory breaches and criminal allegations of fraud and money laundering.
Aviva says ongoing advice review ‘not an issue’
Aviva’s insurance, wealth and retirement chief executive, Doug Brown, stated that the ongoing advice issue initiated by the regulator and its consequences have not impacted the firm.
Brown said that both Aviva and its subsidiary, Succession Wealth, have implemented procedures to ensure compliance with regulations, including the Consumer Duty. He expressed confidence in Succession Wealth’s robust processes for documenting and monitoring meetings.
MM Meets… Quilter CEO Steven Levin: ‘I’ve always loved solving problems’
Quilter CEO Steven Levin reflects on the company’s growth and resilience in a recent interview with Money Marketing editor Tom Browne.
Under Levin’s leadership, Quilter has achieved significant milestones, becoming the largest advised platform and introducing innovative services such as CashHub.
Looking ahead, Quilter aims to enhance its offerings while maintaining a client-centric approach, and Levin sees opportunities in evolving markets and technologies such as AI.
