Changes proposed in the Pre-Budget Report (PBR) have prompted Fidelity FundsNetwork to develop four services it says will help those advisers keen on collective investments.
The new features include consolidated tax statements, a regular withdrawal plan and a range of trusts and guides for IHT planning using OEICs and unit trusts.
In addition, Fidelity FundsNetwork is introducing investment valuations and planning tools which “look” through the tax wrapper.
Paul Kennedy, business development director for trusts and tax planning solutions at Fidelity FundsNetwork, says: “Whilst the industry still awaits certainty of the final CGT legislation, there can be little doubt that many advisers will look to use collectives as opposed to insurance bonds in circumstances where this is advantageous to their clients, particularly higher rate taxpayers.
“There is already a spotlight on the pros and cons of collectives versus insurance bonds and our developments dismiss some of the myths being circulated about collective investments.”
Fidelity says its annual consolidated distribution summary is one document that provides “the three simple figures” that need to go on the tax return.
It says the document breaks down into dividend distributions and interest distributions and full details of all the individual distributions are included as well.
With regards to the withdrawal plan for collectives, Fidelity says the client can select a fixed regular withdrawal on a monthly, quarterly, six-monthly or annual basis. Withdrawals may be taken from one specific fund or a number of funds.
Kennedy says: “There is a lot of talk about the various features of insurance bonds versus collectives, some spurious, some valid.
“I urge advisers not to be hoodwinked into thinking collectives are an administrative or tax nightmare…they needn’t be.
“A consolidated income tax statement brings together all the information needed from each tax voucher.
“Also, don’t be led to believe that certain features familiar to bonds - such as regular withdrawals and IHT trust planning - can’t be found with collectives…they can.
“For example our own range of Trusts is designed to work with our array of collectives as well as the FundsNetwork life wrappers.”
020 7034 2636
Square Mile’s series of informal interviews
Achievements, charity work and other happy snippets
Latest news and analysis
69% of general population