You are here: Home - Saving & Banking - News -

TISA seeks tax-free transfers

0
Written by:
22/02/2008

The Chancellor’s announcement on proposed Capital Gains Tax changes in the pre-Budget report significantly changed the attractiveness and possibly the suitability of single-premium investment bonds for current and future investors.

While the Tax Incentivised Savings Association (TISA) has played an active role in facilitating dialogue and fostering a better understanding in all quarters about how the changes might impact the market, it believes that there is a better way forward. 

Ahead of the 2008 Budget, TISA has written to ask that the Treasury consider changing the rules on investment bond transfers. Under the proposals, individuals could switch between investment bonds and providers without triggering a taxable event. 

Tax-free transfers would also bring this wrapper into line with most other tax-incentivised schemes, such as pensions, ISAs and Child Trust Funds. Transfers would promote competition in the marketplace and allow consumers to choose the best product and investments for them as their needs and appetite change or as the market develops.
 
While most of the industry is focused solely on taxation and attractiveness as compared with other forms of collective investments, TISA believes its recommended change would provide a more positive impact on the market, given the longer-term nature of single-premium investment bond holdings. It also believes that Single Premium Investment Bonds still have a place for many as a part of their wider financial planning. 

TISA director general Tony Vine-Lott said: “TISA believes that single premium investment bonds are a useful tool as part of many consumers’ long-term savings and retirement needs.

“We believe that enabling bonds to be transferred tax-free in the same way as other major savings schemes would further enhance the attractiveness and suitability of this market, while giving consumers the confidence that they can always choose the best option for their current needs.”

 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Record numbers unearthing lost accounts

Huge numbers of customers are visiting mylostaccount.org.uk to unearth old bank, building society and NS&I (National Savings and Investments) accounts.

Close