SALES OF tax-efficient individual savings accounts (ISAs) fell by 10% during 2005, despite net retail sales of funds outside the tax wrapper rising by 73% over the same period, reports The Scotsman .
According to the paper, the latest investment fund statistics report from the Investment Management Association (IMA) showed net ISA sales fell to £1.8bn last year, the lowest level since the plans were introduced in 1999, but at the same time net retail sales rose to £8.5bn, to their highest level since 2001.
A spokeswoman for the IMA said investors have continued to be nervous about getting back into equities after three years of falling stock markets.
The gradual erosion of the tax incentives within ISAs was another reason given for holding back sales.The IMA spokeswoman told the paper: "For basic rate taxpayers, the removal of the dividend tax credit means there is less incentive to invest in an ISA.”
AVIVA, BRITAIN’S biggest insurer, has signed a deal giving it access to an additional 2.2m customers in India, The Times has learnt.
Aviva Life Insurance, in which Aviva has a 26% stake, will sell life cover from 241 branches owned by the Centurion Bank of Punjab, a bank that has been set up to cater to India’s new middle class.
The deal seals Aviva’s position as India’s leading provider through the bancassurance sales channel. It has agreed 18 tie-ups with Indian banks. Aviva’s cover is now sold from 465bank branches in 353 locations.
The bank is one of a new generation of banks established to cater to the middle class, which is growing by between 15m and 20m people each year. The life insurance products sold through the bank will be similar to those available in Britain.
REVENUE AND CUSTOMS has said it "does not come as a surprise" that four out of 10 corporation tax returns contain mistakes, in a statement that will fuel business and political criticism of the increasing complexity of tax legislation, reports The Financial Times.
Hundreds of thousands of tax returns submitted by companies each year are incorrect, the Revenue's own research suggests. More than 1m returns for corporation tax on profits were submitted in 2004-05, raising about £33bn for the exchequer.
An analysis by the Revenue of a random sample of 400 returns found that only about 60% were entirely correct, with the rest understating the amount of tax due by an average of £2,700.
The research identified 60 "different main types of error", according to a report by the National Audit Office. The most common mistakes included business receipts being understated, owners' personal expenses being included in the company's accounts and loans being made to directors without being taxed.
The Revenue told the paper the results did "not come as a surprise. It is important to remember that the errors counted here will include any adjustment to tax, no matter how small (even one penny)".
But it stressed it took the tax loss from companies "very seriously" and was "looking hard at how we better target and deal with error and evasion".
THE liquidators of the Bank of Credit and Commerce International (BCCI) have paid £73m to the Bank of England in an attempt to settle the central bank's record-breaking claim for costs, the high court was told yesterday, reports The Guardian.
However, the Bank is refusing any offer of settlement of its £81m costs claim, which is being brought following the sudden abandonment of the liquidators' £850m damages suit in November.
The Bank is holding out because it wants Mr Justice Tomlinson to make a written judgment exonerating the Bank and 22 officials who were accused by the liquidators, at accountants Deloitte, of misfeasance in public office before the claim was withdrawn in November.
By the time the case "spectacularly imploded" the hearing had run for more than 255 days and taken 12 years of litigation between the collapse of BCCI in 1991 and the start of claims in 1993.
The Bank is claiming £73m to cover its legal costs during the 12-year period of litigation as well as £8m in lost interest.
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First mentioned in Cridland Report