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Press comment: Tax reliefs inquiry to review value for money


If you are covering the inquiry into the management and value for money of tax reliefs, launched yesterday by the Public Accounts Committee, please see the following commentary from Rachael Griffin, financial planning expert at Quilter:

“Tax reliefs are a critical tool used to incentivise positive behaviours, whether it be to encourage long-term saving or reward innovation. Pension tax relief, for instance, is a highly effective mechanism for incentivising people to save for the future. By providing tax relief on money paid into a pension the system offers a tax deferral mechanism. This creates a clear incentive for people to save for the future, while the income tax they pay on withdrawals from their pension means they are discouraged from withdrawing at an unsustainable rate in retirement.

“It is right that MPs scrutinise carefully the value of tax reliefs to ensure they offer good value for money. Where they are found to be failing to encourage the right behaviours they ought to be reconsidered, but we also need to exercise caution about the message this sends out and take a balanced approach. Entrepreneurs Relief is a good example of this. It was cut dramatically at the last Budget on the basis that it wasn’t deemed particularly effective at encouraging people to launch start-up companies. However, in cutting the relief Government also risked sending a negative message to the entrepreneurs of tomorrow. This may be why the Chancellor settled on a compromise solution of capping relief, rather than cutting it entirely.”

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Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £95.3 billion in customer investments (as at 31 March 2020).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Quilter International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Quilter Financial Advisers (previously Charles Derby Group)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Investment Platform)
  • Quilter International (previously Old Mutual International)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.