At present, if consumers use their full annual Isa allowance of £10,200 in a property fund they have had to pay a completely unnecessary £80 a year to the taxman.
However, as the Investment Management Association (IMA) has explained, the tax code has been changed so this is no longer necessary.
Despite this, ordinary investors will not benefit from the change.
"Big investors like pension funds and charities have been able to deal with this quirk by putting their property portfolios into funds based in offshore locations like the Channel Islands, where the tax charge is not applied," the IMA said.
"But this is not necessarily an option for the ordinary investor ."
Meanwhile, Dr Ros Altmann, director general of the Saga group, has welcomed news that the National Association of Pension Funds has asked Lord John McFall to chair an independent inquiry into retirement savings .
Dr Altmann observed that the current pensions system is no longer fit for purpose.
Investors offered savings advice
Investors offered savings advice
Thu, 03 Feb 2011
Recommended links
Online sharesInvestments enquiry form
Pensions enquiry form
Savings accounts and providers
Investment options
Retirement income
Isas guide and comparison
Healthy living represents worthwhile investment
Standard Life Investments scoops prestigious award
Investment firm launches new fund
Confidence among female investors is growing, says Barclays
Asian sell-off creates opportunity for investing
| Stocks & Shares news |
|---|
| Investors happy to make own decisions but lack SIPP knowledge, survey finds - Tue, 05 Apr 2011 |
| Investors put off switching Isas by low rates and fear of mistakes - Thu, 31 Mar 2011 |
| Investors shunning banks when taking out an Isa - Tue, 22 Mar 2011 |
| More News |
