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Old Mutual Wealth adds ‘scheme pays’ feature to settle annual allowance breaches

13/01/2020

Old Mutual Wealth, Quilter’s adviser platform, has added a voluntary ‘scheme pays’ feature to its personal pension, the Collective Retirement Account (CRA), allowing customers to settle annual allowance tax charges for any pension scheme.

Quilter has brought in the new feature following well-publicised issues surrounding the tapered annual allowance affecting many public sector workers.

Instead of building up large debts, clients can now use their personal pensions to pay their annual allowance tax charge where they have exceeded the limit.

Developed in collaboration with Quilter’s national advice business, but available to clients of all financial advisers, clients will only have to simply fill in one form to select this option for paying the tax charge. Once established by the client, the CRA will pay HMRC as soon as possible after a request is received, minimising the risk of any late payment penalties associated with other options in the market.

In addition, Charles Derby, part of Quilter’s national advice business, was also recently recognised by NHS employers as being able to give expert guidance and advice on pension tax issues to employees facing issues around the tapered annual allowance. 

Ian Browne, pensions expert at Quilter, said: “The issue of annual allowance breaches has truly reached the mainstream given all the problems facing doctors, judges, members of the armed forces and other public sector employees. As such providers need to come to the fore with innovative solutions that makes it easier to pay for a tax charge many are unaware they have triggered.

“This new feature will help remove the stress of paying any annual allowance tax charges, as well as minimise the risk of incurring penalties for late payment. This is also a simple and easy to use service, which only requires the information you already need for a self-assessment. As a result we think this will give clients and their advisers a wide range of options when it comes to giving pension advice and planning.”

Graham Crossley, head of development at Charles Derby Dental and Medical, added: “It has been great to collaborate across the Quilter group to deliver this new feature on the platform. As an organisation we have seen a large increase in the demand for tax planning in the wake of the issues facing doctors in the NHS pension scheme, and we believe that this solution should go a long way to alleviating some of the complexity involved in paying annual allowance tax charges.

“While we await the proposals from the government about how they plan to fix the issues with the tapered annual allowance, it must be remembered that this affects a large number of public sector employees. The demand for quality financial advice is only going to grow as a result and advisers need to have the tools at their disposal to make things as efficient and easy as possible.”

For more information contact

Gregor Davidson020 7002 716407917 522784gregor.davidson@quilter.com

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 £110.4 billion in customer investments (as at 31 December 2019).

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 Old Mutual 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 Wealth Solutions in 2020)
  • Old Mutual International (becoming Quilter International in 2020)

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.

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By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Quilter plc’s control including amongst other things, international and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing and impact of other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which Quilter plc and its affiliates operate. As a result, Quilter plc’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Quilter plc’s forward looking statements.

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