Latest news with #StandardLife
Telegraph
4 days ago
- Business
- Telegraph
The Australian pensions tax trap that could come to Britain
Australia's plan to double thousands of pension tax bills could be adopted in Britain, experts fear. Under new rules put forward by Australia's government, 80,000 savers would be forced to start handing a third of their investment returns to the tax office. When approached by The Telegraph, the UK Government refused to rule out bringing the policy to Britain – which would add to a series of pension raids on farmers, business owners and grieving families. Martin Willis, of consultancy Barnett Waddingham, said it would provide the Government with quick access to revenue, while Standard Life's Mike Ambery said all options were 'on the table'. The move could be seen as a replacement for the abolished lifetime allowance. The tax charge on large pensions was removed by previous chancellor Jeremy Hunt, but Deputy Prime Minister Angela Rayner called for it to be reintroduced in a memo leaked last week. Australian pension savers must pay 15pc tax on any pension investment returns once their pot exceeds $3m (£1.4m), but the country's Labor Government – led by prime minister Anthony Albanese – is now aiming to double the rate to 30pc. It would require people to pay even higher amounts of tax on 'paper returns', where they have to physically pay a bill for investment gains they have not received in cash. Any losses are offset against future years, but previous payments are not refunded. 'Quasi-inheritance tax' The country's previous Labor government tried and failed to make the change in 2023, but the plans look increasingly likely to become law after the party clinched a surprise majority with a landslide election win last month. The move, which will raise $2.7bn (£1.3bn) in its first year alone, was branded a 'quasi-inheritance tax' by Peter Dutton, the opposition's leader, before the country went to the polls. Critics have also warned that as many Australians also hold assets like farms and small business in their pension schemes, cashflow shortages might force some owners to sell if they couldn't meet their increased tax bills. In the UK, pension investment returns are currently tax-free. But the Treasury did not rule out the move and two experts said that it would be considered. Mr Willis said: 'The Government is definitely looking to Australia and what it's done with its pensions, so they'll definitely look at this. Although the UK government gets to tax pension savings on the way out, this would allow them quicker access to the additional revenue. 'With that said, there are other options that would be more dramatic to reduce tax relief on the way in. I would not be surprised in the coming years to see something done on higher rate tax relief or National Insurance. 'The Government is looking at this because they probably would like to reduce what they're spending on tax relief. It's a lot of money.' Mr Ambery also said: 'All options are on the table. The UK looks at Australia as one comparison for pension policy, but we do things our own way. It would be logical as part of a changing environment on the pension landscape to consider this as an option. 'Tax relief and wealth distribution are highly emotive, but critical considerations economically and politically.' UK pensioners already hit by Labour Savers in the UK have already been left reeling by changes made to pensions during Labour's first year in power. In her maiden Budget, Rachel Reeves introduced a £1m cap on agricultural property relief and business property relief, meaning inheritance tax will be charged at 20pc on assets over £1m from April next year. Pensions will also be considered for inheritance tax purposes from 2027, decimating some people's death planning and leaving their grieving families facing tax bills of up to 90pc. The Government has also confirmed that the upcoming Pension Schemes Bill will give pension funds the power to force funds to invest in British assets, which Conservative MPs described as a 'stealth tax' and an 'extraordinary overreach.' Experts also fear that millions of pensions could be at risk from the Government's plans to allow firms to raid their own pension funds, with one describing it as a £40bn tax grab. Last week, HMRC also released research confirming it had examined plans to raid income tax and National Insurance relief on salary sacrifice schemes, costing the average earner more than £500 a year. A Treasury spokesman said: 'As set out in the Plan for Change, the best way to strengthen public finances is by growing the economy – which is our focus. Changes to tax and spend policy are not the only ways of doing this, and recent GDP statistics show that we are doing that. 'We are committed to keeping taxes for working people as low as possible which is why, at last Autumn's Budget, we protected working people's payslips and kept our promise to not raise the basic, higher or additional rates of Income Tax, employee National Insurance or VAT.'
Edinburgh Live
4 days ago
- Health
- Edinburgh Live
Edinburgh mum given heart-breaking diagnosis just two months after 50th birthday
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info An Edinburgh woman was diagnosed with breast cancer just two months after she celebrated her 50th birthday. Gail Izat, an inspirational business leader, was guest of honour at Cancer Research UK's Race for Life, sounding the starter horn to send around 1,300 participants on the courses at Holyrood Park. The Standard Life Managing Director was diagnosed with breast cancer in August 2019. The disease then returned days before Christmas in 2022 and the mum-of-two is now in remission. She has vowed to do whatever she can do to continue spreading awareness and give others more tomorrows with their loved ones. Gail said: "I've had cancer twice but I've got through it twice thanks to life-saving science. 'When you've had cancer suddenly you realise you're not immortal and actually you have something that might kill you. At first having cancer felt like being admitted to a secret club I didn't want to belong to. I felt strongly that I didn't even want to talk to people about cancer until I found out more information about what I was actually facing, until I knew it was curable. 'But as time went on I started to believe I was going to get through the disease. And as I've recovered, I've found events like Race for Life offer a chance to meet people whose lives have also been touched by cancer. It offers a wonderful support and a sense of community.' Gail was cheered on by her colleagues and more than £201,300 was raised at Race for Life - vital funds that will enable scientists to find new ways to prevent, diagnose and treat cancer Linda Summerhayes, Cancer Research UK's spokeswoman in Scotland, said: 'We are incredibly grateful to everyone who took part in Race for Life Edinburgh. Join Edinburgh Live's Whatsapp Community here and get the latest news sent straight to your messages. 'No matter how cancer affects us, life is worth racing for. Sadly nearly 1 in 2 of us will get cancer in our lifetime** but all of us can support the research that will beat it. We're proud that Race for Life has had such a positive impact. Every pound raised supports our life-saving work, which has helped double cancer survival in the UK over the last 50 years. 'It was a fantastic day at Race for Life Edinburgh, full of emotion, courage, tears, laughter and hope as people celebrated the lives of those dear to them who have survived cancer and remembered loved ones lost to the disease. 'Now we're asking everyone who took part to return the money they're raised as soon as possible. Every donation, every pound raised will make a real difference. ' Andy Curran, Chief Executive of Standard Life, part of Phoenix Group, said: 'We are incredibly proud to continue as headline sponsor for Cancer Research UK's Race for Life, with the opportunity to encourage participation across the country. 'By working to raise funds for life-saving research, we can move towards a future where people live longer and better lives, free from the fear of cancer.'
Scotsman
4 days ago
- Health
- Scotsman
Edinburgh Race for Life in Holyrood Park raises more than £200,000 for cancer research
Cancer Research UK said the money was vital in enabling scientists to find new ways to prevent, diagnose and treat cancer, helping to bring about a world where people live longer, better lives, free from the fear of cancer. Sounding the starting horn at this year's event was inspirational business leader Gail Izat, who overcame cancer twice. Ms Izat, who is a Standard Life managing director in Edinburgh, was diagnosed with breast cancer in August 2019, just two months after celebrating her 50th birthday. It was a shock when the disease returned days before Christmas in 2022. Now in remission, the mum of two has vowed to do everything she can to help 'give others more tomorrows with their loved ones'. She said: 'I've had cancer twice but I've got through it twice thanks to life-saving science. 'When you've had cancer suddenly you realise you're not immortal and actually you have something that might kill you. At first having cancer felt like being admitted to a secret club I didn't want to belong to. I felt strongly that I didn't even want to talk to people about cancer until I found out more information about what I was actually facing, until I knew it was curable. 'But as time went on I started to believe I was going to get through the disease. And as I've recovered, I've found events like Race for Life offer a chance to meet people whose lives have also been touched by cancer. It offers a wonderful support and a sense of community.' Standard Life fielded a team of 30 staff who completed Race for Life Edinburgh. Linda Summerhayes, Cancer Research UK's spokeswoman in Scotland, said: 'We are incredibly grateful to everyone who took part in Race for Life Edinburgh. 'No matter how cancer affects us, life is worth racing for. Sadly nearly one in two of us will get cancer in our lifetime, but all of us can support the research that will beat it. We're proud that Race for Life has had such a positive impact. Every pound raised supports our life-saving work, which has helped double cancer survival in the UK over the last 50 years. 'It was a fantastic day at Race for Life Edinburgh, full of emotion, courage, tears, laughter and hope as people celebrated the lives of those dear to them who have survived cancer and remembered loved ones lost to the disease.' 1 . Gathering in the park Hundreds gathered in Holyrood Park as Race For Life Edinburgh got under way. | TSPL Photo: Rhoda Morrison Photo Sales 2 . Fun warm-up Runners taking part in a fun warm up ahead of the race | TSPL Photo: Rhoda Morrison Photo Sales 3 . Starting line Business leader Gail Izat, who has overcome cancer twice, was guest of honour at Cancer Research UK's Race for Life, sounding the starter horn to send the runners on their way. | Cancer Research UK Photo Sales 4 . 10K line-up Those taking part in the 10K event line up at the start of the race | TSPL Photo: Rhoda Morrison Photo Sales Related topics: Cancer Research UK
Leader Live
5 days ago
- Health
- Leader Live
Countdown to Wrexham Race for Life event at Alyn Waters
The annual fundraiser for Cancer Research UK will take place at Alyn Waters Country Park on Sunday, June 15. The event welcomes participants of all ages and fitness levels, who can choose to take on a 3k, 5k, or 10k challenge. In the run-up to race day, the charity has announced a special sale, offering a 30 per cent discount on entry fees for those who sign up between Tuesday, May 20, and Monday, June 2. Participants should use the code SUMMER30 when registering to benefit from the reduced fee. The funds raised by Race for Life help to support scientists in their ongoing work to find new ways to prevent, diagnose, and treat cancer, ultimately striving towards a world free from the fear of cancer. The annual initiative, in partnership with sponsor Standard Life, part of Phoenix Group, raises millions of pounds every year across the UK. Annabel Underwood, Cancer Research UK's spokesperson in Wrexham, said: "We're making a final call to people across Wrexham and Wales to join us at Race for Life, as their participation and contribution is so important. "No matter how cancer affects us, life is worth racing for. "Sadly, nearly 1 in 2 of us will get cancer in our lifetime, but all of us can support the research that will beat it. "We're proud that Race for Life has had such a positive impact. "Every pound raised supports our life-saving work, which has helped double cancer survival in the UK over the last 50 years." She reassured potential participants that the event is non-competitive, adding: "There is an event for everyone and we mean everyone. "Our events are strictly non-competitive which means everyone can have a go and love every minute. "Whether people are living with cancer, taking part in honour of or in memory of a loved one with cancer, in it for the medals, or just for the fun of fundraising, there is a place for everyone." Since its inception in 1994, Race for Life has seen more than 10 million people participate, raising millions of pounds for life-saving research. The event will also feature various activities for participants and supporters, including musical entertainment, food stalls, and a creative station where people can create colourful banners to cheer on their loved ones. READ MORE: Plans for new beer garden at Wrexham city centre Wetherspoon pub Moel Famau fly-tippers prosecuted after dumping rubbish at popular beauty spot Andy Curran, chief executive of Standard Life, said: "We are incredibly proud to continue as headline sponsor for Cancer Research UK's Race for Life, with the opportunity to encourage participation across the country. "By working to raise funds for life-saving research, we can move towards a future where people live longer and better lives, free from the fear of cancer." To join the Race for Life and contribute to this vital cause, visit to register.
Scottish Sun
5 days ago
- Business
- Scottish Sun
How to protect your pension after divorce – everything you need to know
SPLITTING UP How to protect your pension after divorce – everything you need to know DIVORCE is one of the most stressful experiences you can go through in life, not least because of the debate over how to split your finances. While the family home is often given careful consideration, pensions are a vital factor often overlooked. Advertisement But this can have severe consequences later down the line. Pension savings can be worth hundreds of thousands of pounds, yet, all too often these cash pots get ignored when it comes to divorce, and it's usually women who miss out. Their pension pots are often smaller than men's due to taking career breaks to look after children or working part-time. The oversight costs women more than £77,000 on average when it comes to retirement, according to research by provider Scottish Widows. Advertisement Yet, more than more than 60% of divorced women didn't go through pension assets during a divorce. Susan Hope from Scottish Widows, says: 'The main reason women still lose out is because they simply are not aware of the potential value and that pensions should be included in the family assets. 'Divorce can be an extremely stressful and intense time. It can be easy for pensions to sink down to the bottom of the priorities, especially if it's a DIY divorce. She added: "Some may prioritise keeping the family home or taking more cash from a sale, but without seeing the full picture.. Advertisement "This could be at the expense of a fair pension share, so it's important to have the right conversations.' Could you be eligible for Pension Credit? HOW TO DIVIDE A PENSION There are a few different ways to split a pension. It is important to note the value of the pension may be offset against other assets. For example, one person could agree to take a bigger share of the home instead of any of the other person's retirement pot. Advertisement Or the pension could be shared with an agreed percentage transferred to the former spouse. In this case, it's a clean break, according to Dean Butler of pension firm Standard Life. He adds: 'On the downside, it can be quite complicated to set up and needs an order from the court.' Another alternative is called a 'pension attachment order', which is where one person agrees to pay a portion of their pension income to the other, but only when it starts being paid. Advertisement Dean says: 'This also requires a court order and the first person retains quite a lot of control of when and how the pension is used, and payments will stop when they die.' WHAT TO DO WITH CASH After a divorce, you should always take stock of how much you'll need for retirement and whether you have enough. Rachel Vahey, head of public policy at AJ Bell, said:'You may find the income you expected to get at retirement has taken a hit. 'Whether your ex-partner kept the bigger proportion of the pension or you shared some of your retirement savings with them, now is the time to think about how to boost your pot.' Advertisement You can go through a three-step online pension check on the government's website to check if you are on the right track for a comfortable retirement. If you are falling short, look at what your employer can offer. It could be worth upping contributions through a workplace scheme, especially if your employer will match the contribution. Even increasing savings by a small amount can make a big difference in the long term. If you do receive a share of a pension pot, you'll need to think about whether it's in the right place. Advertisement You could save fees by combining it with any other pensions. Having your cash in a single and bigger pot also makes it easier to manage. CHANGE YOUR EXPRESSION OF WISHES Many people don't realise that pension assets are not usually covered by your will. And if you die before taking a private pension, your provider will then decide where the cash goes. This is usually done based on an 'expression of wishes'. This is a form you'll usually fill out when setting up the savings pot. Advertisement Crucially, if you gave your spouse's name when you set up the account, you need to remember to change this when you divorce – assuming you no longer want them to receive the benefits. Ed Monk, associate director at savings provider Fidelity International said: 'If your life circumstances change and you're seriously considering ending your marriage or civil partnership.. "It's important to change your expression of wish to reflect any change in who you want to receive your pension payments in the event of your death.' 3 We explain the best tips so you don't loose out when you go through a divorce Advertisement 'I would definitely be worse off' By Lana Clements TRACEY Ford, 51, was married for 14 years and initially didn't consider her ex-husband's pensions as part of joint assets. The celebrant from Johnstone, Renfrewshire was mainly focussed on how to take over ownership of the house, when she decided to consult a solicitor on the situation. It was only then that she was made aware that she would be due a portion of his civil service final salary pension. She says: 'I had been self-employed for 25 years so didn't have a workplace pension. 'My ex-husband's pension was a sizable asset that I had completely overlooked until the solicitor pointed it out. 'We then went through a process to set up the appropriate paperwork so I'll receive a portion in the future. 'I would definitely be worse off in retirement had I not taken the pension into account.' Nationwide £100 payout MILLIONS of Nationwide customers are to receive a £100 cash sum over the coming weeks. Around four million will receive a share of £410million as part of Nationwide's Fairer Share programme, which rewards its banking customers. 3 Millions of Nationwide customers are to receive a £100 cash sum over the coming weeks Credit: Getty You will need to have opened a current account with Nationwide before March 31. Advertisement Those with £100 in savings at that time will also see the boon if the account was used within the first three months of this year. And Nationwide mortgage borrowers with more than £100 outstanding qualify, too. The cash will be paid into Nationwide current accounts between June 18 and July 4. Chief executive Debbie Crosbie said: 'Nationwide has had an outstanding 12 months. Advertisement "We returned a record £2.8billion in value to our members and recorded our highest ever year for growth in mortgage lending and retail deposit balances, and we remain first for customer service.' It comes after Nationwide paid £50 to customers in April and May as part of its 'Big Nationwide Thank You' following the building society's Virgin Money takeover. Those who have been Nationwide members since March 31 can currently get a £200 bonus by switching to Nationwide's FlexPlus, FlexDirect or FlexAccount. An existing member is someone who has held a mortgage, savings account or current account with the company. Advertisement Cash boost for retired CHANCELLOR Rachel Reeves has announced plans to overhaul the UK pension system, aiming to increase average retiree savings by £6,000. The reforms, part of the forthcoming Pension Schemes Bill, involve consolidating smaller defined-contribution pension schemes into larger 'megafunds'. 3 Labour chancellor Rachel Reeves is set to overhaul the UK pension system Credit: Getty Assets will be pooled from the 86 separate Local Government Pension Scheme authorities into eight funds by 2030. Advertisement The Government draws inspiration from successful models in Canada and Australia, where large-scale pension funds have achieved higher returns through diversified investments. By pooling assets, the UK aims to enhance investment opportunities and stimulate economic growth. Each megafund will set specific targets for local investment, potentially securing £20billion for community development. While the reforms promise increased returns and economic benefits, experts warn that the consolidation could overlook the advantages of smaller, well-managed schemes. Advertisement The Government plans to introduce the Pension Schemes Bill next year, with further consultations to make sure the reforms meet the needs of savers and the economy. The Government says this is a significant shift in the UK's pension landscape, aiming to balance individual retirement savings with broader economic objectives.
