Autumn Statement
After all the excitement in the first part of the year, there will be more than enough in the first half to keep us occupied if this year is anything like last year.
More change among offshore life companies?
In 2015, we saw Friends Provident International exit the UK market and Legal & General International acquire new owners.
There are also rumours that Axa Wealth International is a potential candidate for sale.
It seems that the offshore life market will soon consist of the serious long-term players.
Investment bond taxation
The names of Joost Lobler, Chandraprakash Shanthiratnam and Captain Steven Cleghorn probably do not mean that much to you, but they are the source of much concern to HMRC. They all made withdrawals from an investment bond far in excess of their 5% allowance and generated a huge excess chargeable gain, which they did not take action in time to correct.
They had, therefore, huge tax bills totally unconnected to the actual investment gain made by the bond and in the case of the unfortunate Mr Lobler, it sent him into bankruptcy.
This was much to the embarrassment of HMRC, which simply applies the letter of the law and which is now desperately seeking a way of leaving the law mostly as it is, while finding a solution to the ‘Lobler problem’.
Meetings have been held with all interested parties and a consultation will be issued this spring, with possibly a proposed solution being mooted around the time of the Autumn Statement.
Details of any legislative changes, however, are not expected to be annnounced before the Finance Bill 2017.
5% allowance
One good thing emanating from the meetings with HMRC, about the problem above, is that HMRC made it very clear that there were no proposals whatsoever to do away with the 5% allowance or reduce it.
So if that old chestnut of a rumour surfaces before the Budget next year, it can be quashed immediately.
It looks like another busy year in store for advisers. At the very least, they should consider which of their clients need to be alerted to 10-year anniversaries and the new dividend allowance.
