Grave concerns on tax advice

Dear Editor, We have grave concerns that there is a risk of inappropriate advice being given to existing bond customers and new investors following clarification of the capital gains tax changes announced in the Budget. While we understand the Chancellor's intention to simplify capital gains tax, we believe the way in which the announcement could be interpreted will be damaging to consumers, the intermediary market and the wider UK investment industry. Life funds are taxed on the "i - e" basis which can reduce the effective rate of tax on income. Gains are taxed after allowing for index...