Many IFAs and the City of London are broadly happy with the election result. Capital gains and dividends will not now be placed on the same basis as income tax as promised in the Labour manifesto. The Conservative Party has promised not to raise a range of taxes including income tax and VAT. A budget is expected in February. It will be interesting to see how that works as the United Kingdom departs the European Union in January and moves out of alignment with many regulations at the end of next year.
Sterling jumped almost 3% to touch 1.3514 against the US dollar, a 19-month high, as markets celebrated the defeat of Jeremy Corbyn's Labour party as Professional Adviser reports. Ken Davy does not get elected as MP for Huddersfield but garners more than 15,000 votes.
The pensions industry says that the Tory government should prioritise reform of the tapered annual allowance and the net pay anomaly.
In another political story, the chief executive of IR35 specialist Qdos Contractor, Seb Maley, says the government has an opportunity to "finally deliver" for the self-employed with a review into the proposed IR35 changes.
Advisers tell New Model Adviser that the UK is a much more investable place on the basis of the Conservative Party landslide.
The FCA will bring in rules allowing in-specie transfers between platforms in the first quarter of 2020 but has delayed action against exit fees.
IFAs will probably want to see the latter applied to St James’s Place. Time will tell.
Consultant Abraham Okusanya has questioned the current situation regarding capacity for loss. This is the key quote - “The compliance camp take it to mean that investment risk should be avoided at all costs, even if there’s only a slight chance that investment loss will have a material impact on a client’s lifestyle.”
CEO Patrick Luthi and head of DC Ralph Frank give a frank interview to Corporate Adviser about Now:Pensions among other things discussing the performance lag. They say things are looking up.
