Seven key points IFAs should be aware of from the budget
1. VAT will increase from 17.5% to 20% with effect from 4 January 2011.
The consequences of this have already been widely discussed in the media last night and today.
VAT will become more and more of an issue for financial adviser businesses post RDR and for anyone making a transition between taking commissions and charging fees in the interim period as VAT is chargeable on fees but not on commissions. Advisers should consider how this will affect their remuneration models.

The new Chancellor George Osborne, and the Chief Secretary to the Treasury, David Laws, have made it clear this week that the need to get the budget deficit under control ‘overshadows everything’.


There are whispers from inside some of the biggest product providers around tax relief threshold for pension contributions; the chat is that the threshold could be reduced from £150k to £100k as early as next April.













