Financial News Update we 04/03/2011

Firstly, I would like to say congratulations to all those involved – runners and organizers alike - in last weeks Tunbridge Wells half marathon. Thanks also to the many people who gave encouragement along the way too - it was a fantastic day for all I am sure!

This week we have seen a focus on the gender ban on Insurers by the European Court of Justice, the proposed changes to the tax system following publication of the Office of Tax Simplifications Report as well as more news on the funding of Long Term Care.

The ramification on annuity payments from the gender ban, with the rates paid for male and female being decreased and increased respectively to bring them more into line, is huge and there is likely to be significant changes over the next few months or even years that will affect us all in the future.

Any use of the word “simplification” tends to result in the opposite – just look at the Pension “simplification” that took place in 2006 – it may have removed layers of legislation but it is still a subject that causes confusion!

I read recently that the cost of self funders running out of money and having to turn to local authorities for financial help is costing in the region of £1bn each year which – when combined with the knowledge that only around 7000 of the 50000 self funders or so that go into care each year do not seek any advice on their options – could mean a lot of estates are being exhausted unnecessarily.

In fact they could be more appropriately structured and even preserved for the next generation as I am sure most would intend and it would also mean that the £1bn cost could be (even partially) saved by the local authorities and those resources used elsewhere or is that too “simplistic” a view?!

Anyway, I hope you have a good weekend and let me know if you have seen any interesting articles or news pieces.

This Week …

Estate Planning

Office of Tax Simplification recommends IHT and CGT review http://ow.ly/1bAYEi
IHT faces "top-down review" by OTS http://ow.ly/1bB4M0
Treasury to undertake root-and-branch review of IHT and trust taxation http://bit.ly/efYRNK
Cash-strapped Britain gifts £13.5 billion in unnecessary payments to the taxman http://bit.ly/hrJebM
Law Society launches consumer campaign calling for regulation of will writers http://bit.ly/hBM5UE

Long Term Care

Meet the care home volunteer – aged 93: http://bit.ly/eM8Q2T
Pitfalls of a trust set up to avoid care charges http://ow.ly/1bwvOG
Care policymakers need to think 'outside the box': http://bit.ly/f8peXg
Councils ignore LTC self-funders http://ow.ly/1bzRdS

Retirement

Insurance and pension costs hit by ECJ gender ruling http://bbc.in/e8Ei1k
Women's annuity rates are unlikely to improve by much: http://bit.ly/eNqdo8
What retirement? http://bit.ly/eQcEaa

Investments

'Lehman cost me £150000 and there's no compensation': http://bit.ly/eyrevf

Lastly, I cannot quite believe it but there are just 22 working days left until the end of the tax year!

Regards
Kieron