In the letter, dated 3 May and titled ‘2017 Election Manifesto recommendations from Brewin Dolphin’, Nicol outlined a view on savings focused on “intergenerational fairness delivered through support for UK plc”.
He stressed that “wealth is concentrated in the older generation” and that “the younger generation is not putting enough money aside for retirement, leading to increased intergenerational disparity”.
Simplification
The Brewin recommendations include encouraging long-term equity investment and a pressing ahead with tax simplification.
The letter also called for a removal of the £1m ($1.29m, €1.19m) lifetime pension allowance, sticking to just the £40,000 annual allowance instead.
The wealth manager also wants a ‘Saving for Grandchildren’ tax initiative scheme that would see a gift of 10% from a grandparent’s estate reduce their IHT rate from 40% to 36%, similar to the current charitable giving scheme.
Nicol said all gifts to a grandchild’s Junior Isa, LISA or pension should be immediately free from IHT, instead of the current seven-year rule.
He also wants to see tax relief on a grandparent’s contribution to a grandchild’s personal pension and/or university tuition fees.
“Now is the right time to put long termism back into savings and investment policies,” Nicol said.
