Pension transfers skyrocket

Pension transfers out of the private sector final salaries boomed in 2017. There was a dramatic increase in the value of number of transfers out of defined benefit (usually final salary) pension schemes in 2017. A recent Freedom of Information (FoI) request to the Financial Conduct Authority (FCA) revealed that the £20,800 million was transferred…

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Interest rate rises prove hard to predict

Interest rate rises are increasingly difficult to predict.

The Bank of England did not raise interest rates in May, despite earlier suggestions that it would.  About four years ago a member of the Treasury Select Committee compared Mark Carney, the Governor of the Bank of England, to “an unreliable boyfriend”. The remark was prompted by Mr Carney’s record of talking future interest rate…

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Savings tax review searches for simplicity

Savings tax review aims to simplify complex regulations

The Office of Tax Simplification (OTS) is carrying out a savings tax review. The OTS is looking at the way in which savings and investment income is taxed, which can be very complicated. According to its paper, published in May 2018, “the interactions between the [tax] rates and allowances is sufficiently complex at the margins…

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Mainland Chinese shares join the MSCI index

Important changes affecting market indices for Chinese shares took effect in June, which could affect emerging market funds. On 1 June, the index provider MSCI added 233 domestic Chinese shares to its emerging market and global indices. MSCI has some of the most widely used indices for measuring the performance of emerging markets, with the…

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Could major tax changes help young people?

Baby boomers could face the brunt of proposed new tax changes

A new report has proposed major tax changes by taxing baby boomers more,  to help resolve major issues around what’s called  intergenerational fairness. The report, published by the Intergenerational Commission in May, offers ten policy recommendations which would represent a radical overhaul of the UK tax system. Examples include replacing inheritance tax with “a lifetime…

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