Skandia sees 134% MIP sales boost as pension changes bite

The firm reported a 134% increase in investment in its MIP over the past year and cites the new 50% income tax rate on earnings over £150,000 as the driving force behind the wrapper's popularity. With changes to tax relief, which cut the lifetime allowance from £1.8m to £1.5m and the annual allowance from £255,000 to £50,000, Skandia predicts increased interest in alternative ways of saving. MIPs could help clients who have already used up their ISA, pension and capital gains tax allowances, have a pension fund that may grow to exceed the lifetime allowance, or want to access retireme...