Last weeks Finance Bill cleared the way for a 1% tax on Unit Linked Funds. This charge will mean a tax of €99 on an investment of €10,000. This charge could be extended to funds from banks, stockbrokers and overseas investment providers if the insurance industries lobby is successful as they feel it is unfair to exempt these groups.
The Finance Bill lifted the fee from pension contributions as the government feared it would discourage people from investing for retirement.
The levy could be more than €700 for investors contributing €250 per month over a 15 year time frame and this will be in addition to the existing charges.
Now more than ever it is vital that investors get independent advice on the type of investment plan they go for as tax and charges are a constituent part of a much larger decision making process.
- Steve Garavan
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