A company pension fund has won a landmark case against the Inland Revenue that could help prevent th...
A company pension fund has won a landmark case against the Inland Revenue that could help prevent the government clawing back £200m of tax from other funds, reports the FT.
Tax experts said the decision by the Inland Revenue Special Commissioners, which adjudicate disputes over tax, could protect more than 100 funds from claims by the government. The decision, which was published this month, relates to two buybacks of shares in 1996 by Powergen, the utility company, from the pension fund of the software group Omega.
Companies typically buy back shares as a way of returning spare cash to investors or allowing unhappy shareholders to dispose of their stakes without pushing down the share price. The commissioners said the Omega pension scheme was entitled to retain almost £100,000 of tax credits it recovered from its sales.
Equitable Life has ruled out bringing a policyholder representative on to its board until after the publication of its proposed compromise deal, now expected in mid-September, writes the FT.
The decision by the troubled life assurer, which was made in the past few days, is likely to anger policyholders, many of whom are keen to have formal representation at board level.
A loophole has emerged in proposals by the Financial Services Authority to force insurers to encourage people to shop around for the best income in retirement, writes the Daily Telegraph.
The FSA wants all people with private pension plans to be made aware of the "open market option" which allows them to shop around for the best pension, rather than accepting the one offered by their insurer. But the proposed changes still allow the less reputable insurers offering unattractive rates to conceal the information with clever marketing tactics, critics said.
The founders of Claims Direct, Colin Poole and Anthony Sullman, sealed a deal last week to buy back the company that they listed on the stock market last year for a fraction of its flotation value, notes the Times.
The pair, who floated Claims Direct last year at 180p, successfully launched a 10p-a-share hostile bid to regain control of the company earlier this month. They have now agreed to sell on their stake to Simon Ware-Lane, a major shareholder in the rival Claimline, for 16p a share.
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