• About
  • Events
  • News
  • Newsletter
Adviser Home
  • CPD Centre
  • Development Solutions
    • AXA Investment Managers
    • Momentum Global Investment Management
    • BMO Global Asset Management
    • Tacit Investment Management
    • Downing Fund Managers
    • Aegon Corporate Protection
    • Tax Planning Support
    • Outsourced Investments
    • Orbis Invest Differently
    • FundsNetwork
    • Brooks Macdonald
    • T. Rowe Price - Where Better Decisions Begin
    • Centralised Retirement Propositions
    • Aegon - Supporting financial advice
    • Tax Planning Investments
  • Resources
    • Technical
      • BPR due diligence video
      • Investment Planning; November inflation numbers and more.
      • Investment planning; global dividend payments, RPI Calculation and more.
      • Financial planning considerations around Pensions, Investment Accounts and ISAs
    • Regulation
      • An honest view of ESG: Matthew Jellicoe
      • ESG Viewpoint: Coal's Uncertain Future
      • How to combat pensions scams
      • How the Pension Schemes Act will affect your clients
      • IFAs and regulators must focus on drawdown underspending
      • How Will Regulatory Changes Impact ESG?
      • What the US election result could mean for markets
      • The Money Marketing Podcast: US Election Special
      • A guide to ESG and responsible investing
      • Is ESG for the money or the morals?
      • Inducements - what's in and what's out?
      • Investment scams booklet
      • The role of stewardship in ESG
      • The performance review: We put 10 ESG UK equity funds under the microscope
      • Are DFMs meeting the ESG challenge?
      • Increases to the state pension and lifetime allowance
      • Pensions & ESG – the DWP strikes back
      • FCA focus on ‘sustainable finance’ set to increase
      • An asset class growing in popularity: What advisers need to know about peer-to-peer lending
      • A practical guide to Pension Transfers from defined benefit to defined contribution
      • How to manage your CPD
      • What do high UK government debt levels mean?
      • Next state pension age review must assess Covid-19 factor
    • Marketing
      • Navigating the new normal: how marketers can humanise and personalise the consumer experience
      • Building Customer Trust: The Stages to Leveraging Preference Management
      • Successful Strategies to Win New Business
      • How to build a digital adviser. Part 1: your website
      • How to build a digital adviser. Part 2: emails
      • How to build a digital adviser Part 4: social media
      • Your Guide to Business Development in the New Normal
      • Creating a successful digital advice model
      • A simple guide to Metadata
      • Blogging Checklist
      • Marketing Checklist
      • SEO checklist
      • Website checklist
      • Case Studies
      • Investment Guides
      • ABI Making Retirement Options Clear
      • Equity Release - Not For Me
      • PMI - New Market Opportunities
      • Social Media Training
      • Adviser PR
      • Web Review Service
      • Communication Reviews
      • Corporate Design
      • Tailored Web Development
      • E Mail Marketing and Communications
      • Unconscious beliefs ‘key’ to sticking to advice plan
      • Advisers must embrace digital tech, just like their clients
      • The Insiders' Guide on How to Grow Your Business During Lockdown
      • Trends 2021: Selective innovation and getting personal
    • Team Development
      • ISO 22222 - Increase your professional standards
      • SOLLA - Later Life Adviser Accreditation
    • Technology
      • Increase client face to face time
    • Proposition
      • Is now the right time to be adding risk?
      • Your clients’ retirement could have been hit three ways by 2020
      • How to introduce clients to protection
      • The Insiders’ Guide on How to Grow Your Business During Lockdown
      • Value vs. growth - who wins?
      • Building a Living Pension
      • Why 2021 could be the year of the Ssas
      • The New Protection Challenge
      • The best and worst performing funds of 2020
      • FTSE soars 3.1% on first trading day of 2021
      • Demand for advice set to 'grow exponentially' this year
      • Handling vulnerable clients who want equity release
      • Preparing your clients for a K shaped recovery
      • Shift in retirement journeys set to reshape the market
      • Managing risk in volatile markets
      • State pension now a whole lot more important for planners’ clients
      • Govt boosts support for self-employed during lockdown
      • Covid-19 job cuts cause over 55s to re-think retirement plans
      • Covid has changed advice needs
      • ESG for income and growth
      • Savings surge is an adviser opportunity
      • Four in five UK adults say they don’t have a ‘pension will’
      • Combining pensions and property
      • Why transfers in drawdown will be a key theme for advisers
      • Clever Adviser Technology Ltd
      • The Value of Advice - an insiders guide
      • The Value of Advice
      • Adviser Home Guide to Innovation
      • Designing your service proposition
      • Effective Cash Management
      • A managed sale, move and funding service for your retired clients
      • Private Medical Insurance
      • Portfolio Comparison
      • Cashflow Modelling App
      • Defaqto Engage Core
      • Protection advice made simple
      • Client Reports and Online Paraplanning
      • Technical Support
      • Guide to the changing face of protection cover
      • Advising on income protection
      • Business Protection
      • The future of cashflow modelling
      • Equity available in UK homes soars to £600bn
      • Battling the pension scammers
      • Billy Burrows: The way we advise clients will change
      • Why advice finally feels relevant
      • South West: Bonds we can depend on
      • Pandemic forcing a widespread rethink of retirement plans
      • Guide To Post-Covid-19 Retirement Planning
      • Global Investor Behaviours and Attitudes: A Cross Generational Overview
      • Rohan Sivajoti: The one page business plan
      • Protection conversations increasingly common for advisers
      • Generate new business with tax-efficient investments
      • Fixed income in the new normal
      • The risks that investors should prepare for in 2021
      • FTSE sinks 3% amid Covid chaos
      • Longevity: The hub of retirement planning
      • Are investors adjusting to the new normal?
      • Women urged to check pensions for underpayment
      • How to manage pitfalls of giving wealth to next generation
      • The dangers of drawing too much, too soon
    • Adviser Business In Testing Times
  • Sustainable Investments
    • Sustainable Investing - M&G
    • Sustainable Investing - Schroders
    • Sustainable Investing - Hermes
    • Sustainable Investments - Pictet
  • About
  • Events
  • News
  • Newsletter

Weekly Updates

John Lappin

Our Industry Commentator with his top news links each week.

Budget brings future tax rises and lifetime limit freeze

The Budget held few surprises, pleasant or otherwise as Chancellor Rishi Sunak’s press operation had already signalled what was going to happen. It was widely trailed that the lifetime allowance would be frozen, and it has been frozen until 2026 with fiscal drag delivering what is effectively a cut.

IHT and capital gains thresholds are frozen too.

Claire Trott head of pensions strategy at St James’s Place discusses the implications in FTAdviser,

It was also widely expected that corporation tax would rise and rise it will, though not immediately, to 25 per cent from 19 per cent, though the Government argues it is still competitive with the G7 countries.

Investors have begged to differ in the Financial Times predicting it will hurt investment. The move has been described as going against Tory values by former chief secretary David Gauke in the Telegraph.

The Institute for Fiscal Studies remains very sceptical as well.

To quote: “If they [tax rises and spending cuts] are all delivered they would get the public finances into current balance – i.e. borrowing only to invest – by 2025-26. The sad truth is that that would be a balance built on the highest sustained tax burden in UK history and yet further cuts in unprotected public service spending. That is perhaps one measure of the difficulties presented by more than a decade of paltry growth followed by the deepest recession in history.”

Of course, the Treasury argues that around 70 per cent of firms will not have to pay the corporation tax rise as profits are below £50,000, noted here by the Chartered Institute of Payroll Professionals website. There is also a taper up to profits of £250,000.

In addition, beginning in April 2021, a new super-deduction will cut companies’ tax bills by 25p for every pound they invest in new equipment, meaning they can reduce their taxable profits by 130% of the cost, as the Construction Index website reports.

Advisers might ask why updating their platform or back-office systems does not merit such relief?

This is a high tax budget for individuals, though not yet as Money Saving Expert reports. The freezing of the lower and higher rate thresholds will rise in April but then be frozen to 2026.

It arguably meets the Government’s manifesto pledge not to raise the rate of income tax, VAT and NI. You can argue whether it’s a stealth tax or not - the Chancellor acknowledged that this was specifically what he was doing in the Budget speech.

The move has been criticised for bringing more people into paying income tax gradually but steadily and likewise for those paying higher rate tax.

The Bank of England was also handed a role in the move to a zero carbon transition with an expectation it will buy green bonds in any future QE. There is still a rather heated debate about what this means in practice, however.

Unsurprisingly the shadow chancellor Anneliese Dodds argues that far more needed to be done to secure the recovery.

 Outside of the Budget news, the FCA is launching a new online invoicing portal on 12 April 2021 for advisers and others to access their invoices and arrange payment of their fees.

Blevins Franks has warned that PII will not cover business transacted in the EU, presenting potential problems for the 5,500 UK-authorised firms who, in 2016, were passporting their authorisations into Europe.

Leigh Day has begun its multimillion pound group claim for Woodford investors against the fund's administrators Link Fund Solutions as Citywire reports.

Back

Our Sponsors & Partners

Octopus Investments
Aegon
Pictet Asset Manegement
BMO Global Asset Management
Orbis
Schroders
Clear
Momentum Global Investment Management
Funds Network
Brooks Macdonald
Previous
Next

Contact Us

  • Partners
  • Contact Us
  • Terms & Conditions
  • Data / GDPR
  • Privacy Statement

Social

Follow us to stay up to date with the latest industry news

  • Twitter
  • LinkedIn

Newsletter Sign Up

Fancy getting all the latest news direct to your inbox?

Please do not fill in the above field to help us identify genuine requests.

Adviser Home

© 2021 Adviser Home

Website by Clear

Back To Top

Sign up to the Adviser Home newsletter

Please leave the above box empty.

After you register your details with us we will communicate with you by email as follows:

Each week you will receive an update bulletin “InfoMix”. You will also receive, normally weekly, a single email on a subject of relevance to your role as adviser or provider.

For providers we will also from time to time - normally 3 or four times a year, tell you about Adviser Home initiatives or opportunities for you to partner with us.

At any time you can elect to stop receiving emails by unsubscribing.

Your data will only be shared with a third party with your specific written agreement. Our full GDPR policy is found here

Please leave the above box empty.

Please leave the above box empty.