SIPPs: Where now for SIPP deposit accounts?

Crumpled question marks heapPeople using deposit accounts in their Self-Invested Personal Pension (SIPP) have had it tough for a number of years. Interest rates, which were already at record low levels following the financial crisis, fell even further when the Funding for Lending scheme was introduced, some banks and building societies have withdrawn their accounts and for much of the last few years inflation has been higher than interest rates. But SIPP deposit account savers are nothing if not a patient bunch. In our ...

Pensions: Labour to “restrict pension tax-relief”

iStock_000024336538_ExtraSmallEd Balls, Labour’s Shadow Chancellor, has announced he will look to restrict the tax-relief paid on some pension contributions should there be a change of Government in 2015. Contributions to pensions currently attract tax-relief. Basic rate tax-payers receive 20% relief, effectively turning an £80 contribution to £100; higher rate tax-payers can claim back additional amounts subject to an overall cap in contributions. Higher rate tax-relief to be abolished? However, the merits of higher rate tax-relief has been continually debated and it now seems Labour are set ...

200,000 pension investors could lose compensation

iStock_000024336538_ExtraSmallA report from MPs has revealed over 200,000 Equitable Life pension investors could miss out on compensation, because the redress scheme wasn’t publicised enough. The Commons Public Accounts Committee (PAC) has admitted some Equitable Life victims are now at greater risk of remaining untraced, as the Government has set an arbitrary deadline, for the compensation scheme to come to an end, of March 2014. The pension and investment firm, Equitable Life, failed in 2000, resulting in many investors losing significant amounts of their capital ...

Investing: ISAs get new tax-break

Minimum WageThe ever popular ISA (Individual Savings Account), received a boost yesterday as the government announced shares in smaller companies, quoted on markets such as AIM (Alternative Investment Market), will be eligible to be held in the tax-efficient wrapper from October onwards. Until now, only shares quoted on recognised stock exchanges have been eligible to be held in an ISA. However, the changes will significantly benefit investors into smaller companies, as well as people with a potential Inheritance Tax (IHT) liability....