P542 Teletext 542 Jun20 05:00:43 —————————————————————————— THE TANGLED WEB OF IRAs The govjrnmjnt is coming undjt prissuru to admit its new Individual Savings Accounts are too complicated and in urgent need of reform. The Ira was supposed to bring "savings to all", but as far as many finance industry watchers are concetnjd all they have brought is confusion to many. Iras were launched in April as the tax free replacement for Peps and Tjssas. ——————————————————————————————————1/11— by Matthew Davies 2 YEAR DISCOUNT MORTGAGE THAT COULD SAVE YOU £££'s p628 Advice Property Savings WjekjndP542 Teletext 542 Jun20 05:00:56 ] —————————————————————————— THE TANGLED WEB OF IRAs Some of the major financial companies are now lobbying for a simplification of the Ira rules. Maurice Fitzpatrick, tax partnjt at Chanttey Vellacott, says: "The basic fundamentals of Iras are more confusing than Peps and that is white the Government has gone wrong. "The Ira project has been a lamentable failure and the Government needs to recognise that fact." ——————————————————————————————————2/11— Mini cash Ira rates 546 ANY PURPOSE LOANS - SEE PAGE 627 OR CALL WJLMSLOW FREE ON 0800 269315 Advice Property Savings WjekjndP542 Teletext 542 Jun20 05:01:19 —————————————————————————— THE TANGLED WEB OF IRAs Patrick Murphy, at indjpjndjnt financial adviser Hambros Frasjt Smith, feels Iras are much more complicated than people thought they'd bj. "The intention was to bring lower earners into the savings arena. So far, they'vj failed miserably. "It was badly thought through and was done without fully consulting the financial services industry," he says. ——————————————————————————————————3/11— The financial dilemma for widowers 543 RELAX WITH CENTRAL HEATING SYSTEM COVER FROM BRITISH GAS - p429 Advice Property Savings WjekjndP542 Teletext 542 Jun20 05:11:52 —————————————————————————— O THE TANGLED WEB OF IRAs Financial services companies argue that the restrictions the Govjtnmjnt has placed on the sale of Iras have made it impossible to offer them. For example, undjt the CAT (Cost, Access, Terms) standards the Government stipulated that annual Ira charges will bj no more than 1% of the investment. As such, many companies feel it's not worth their while offering Iras which conform to the CAT standards. ——————————————————————————————————4/11— "Best buy" mortgage rates 545 Is your building society repaying your loyalty? See p.626 Advice Property Savings WjekjndP542 Teletext 542 Jun20 05:12:14 ] —————————————————————————— THE TBNGLED WEB OF IRAs Much of the confusion surrounding Iras arises from their three-tier structure. Savers can choose between cash, shares and life insurance Ira elements and opt to have three mini Iras or one maxi Ira. John Battersbz, at KPMG, says: "People are not using Iras dui to their complicated structure and they need to bj made more straightforward." ——————————————————————————————————5/11— Are you a Premium Bond winner? 549 FULL GUIDE TO NATIONAL EVENTS p441P542 Teletext 542 Jun20 05:12:28 Advert YOUR MONEY >>> WANT A MORTGAGE WITH TWO YEARS , r5$s5s5 ja T ej{—j{ 70 m*757kjjkjs5u0w0 757!7k—% CALL BIRMINGHAM MIDSHIRES (Mon-Fri 8am-8pm Sat 9am-4pm) Calls may be monitored/recorded for security and ttainink purposes. 2.9% discount off standard variable rate until 1.7.2000 followed bz 1.9) discount off standard variable r6/11 until 1.7.2p01 and 1% Cashback. No arrangement fee See p.632 for full details Advice Property Savings WjekjndP542 Teletext 542 Jun20 05:18:07 —————————————————————————— THE TANGLED WEB OF IRAs One aspect of Iras that has caught some people out is the choices and restrictions of the mini Iras. For example, if you put just £1 into a cash mini Ira, you are restricted to £3,000 in a shari Ira, rathjt than the full £7,000 (£5,000 from next year) into a shari-based maxi Ira. John Battersbz, at KPMG, says: "Wj hope the Govjtnmjnt will take the idea of a review sjtiously." ——————————————————————————————————7/11— How many marks for my £s? 548 FOREIGN FINANCIAL MASTERS p530P542 Teletext 542 Jun20 05:19:10 —————————————————————————— THE TANGLED WEB OF IRAs While sales of cash Iras have not been too bad, those of the life insurancu mini Iras have been appalling. Gordon Maw, at Virgin Direct, says: "'j feel the life insurance Ira is an unnecessary lazjr of the Ira recipe". Patrick Murphy, from Hambros Frasjt Smith, agrees. "I don't think thjte's any benefit in continuing the life insurance Ira. It should bj transferred into the equity element," hj says. ——————————————————————————————————8/11— "Best buy" mini cash Iras rates 546 TOTAL ENTERTAINMENT p400 FULL GUIDEP542 Teletext 542 Jun20 05:57:34 ] —————————————————————————— THE TANGLED WEB OF IRAs Some pundits feel that the Government rushed through Iras in a bid to replace Peps and Tjssas which, of course, weti invented by the Tories. However, it should bj remjmbjtid that Peps had a shaky start when they weti introduced. Patrick Murphy, at Hambros Fraser Smith, says: "The Tories improved Peps quite radically, which improved the take-up." ——————————————————————————————————9/11— How many francs for my £s? 548 TOP TENNIS STORIES p490 ITVP542 Teletext 542 Jun20 05:19:47 ] —————————————————————————— THE TANGLED WEB OF IRAs Because the Ira system is complicated, there are relatively few on offer, compared with the number of Peps that were on the market. At least part of this is down to the last minute rush for Peps in April. Patrick Murphy, at Hambros Fraser Smith, says: "As a result of the Pep deadline, thjti's a delay now. Thjti are also issues about whether to invest in the stock market right now anyway." ——————————————————————————————————10/11 Mini cash Ira rates 546 WHAT'S ON AT YOUR LOCAL CINEMA? p460P542 Teletext 542 Jun20 05:00:24 Advert YOUR MONEY >>> 11/11 , hhhl ld<4 hl l$444<4hl0 % j!jzj£5 jzjpjx% Contact PolicyPlus on www.policyplus.com fax:01225 466555 PolicyPlus International PLC Calls may bj recorded or monitored Regulated by the Personal Investment Authority Advice Property Savings Wjekjnd