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Tax policies could change experts warn
May 7, 2010
By Mark Warner

Experts in the financial services industry have warned that there could be significant changes in tax policy following the election.

It is thought that current rules on inheritance tax and capital gains tax could be far less generous as part of the new government.

Consequently, independent financial advisors (IFAs) are being advised to review their clients’ tax ahead of any such tightening.

Heron House Financial Management financial planning expert Saran Allott-Davey said there will "almost certainly" be changes to current tax policy post-election.

"In just a few months, many people may be pleased to have taken opportunities while they had the chance," she advised.

Ms Allott-Davey added that the £10,100 capital gains tax allowance and the inheritance tax exemption after seven years could come under scrutiny as part of the new leadership.

However, Witan Investment Services marketing director James Frost said any such changes could boost individual savings accounts, as investors will be looking to avoid unnecessary taxation on their gains.

He also noted that it could be beneficial to IFAs, as clients will require "very specific" tax advice which could necessitate the development of new products for investors.

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