In the news
UK investors return to funds
Following the highest ever monthly outflow from retail funds in March, UK savers invested more in the second quarter of 2020 than they did for the whole of last year. Figures show that £11.2bn was invested for the quarter, compared to £9.8bn in 20191. In June, global shares were the best-selling geographic region, with net retail sales of £930m.
CGT overhaul on the cards?
Over the summer, the Chancellor, Rishi Sunak commissioned a review of Capital Gains Tax, to determine whether the current system is fit for purpose and to identify simplification opportunities.
The Office of Tax Simplification (OTS) has published an online survey and call for evidence. They will explore the applicable rates, reliefs, exemptions, allowances and overall scope of the tax, in addition to its role in respect of the position of estates in administration, potential distortions to taxpayers’ investment decisions and the selling or winding up of unincorporated businesses.
The OTS commented in their call for evidence, there have been ‘several changes to CGT’ over the last 10 years and that it ‘may be helpful to consider the tax again in the current climate.’ We will keep you up to date on any developments
Private pension age rise confirmed
In September, the government confirmed the private pension age will increase from 55 to 57 in 2028, meaning those retiring in future will have to wait longer to access their pension.
1The Investment Association, 2020
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.