Abstract
Overview
Introduction
This report examines the proposed changes to the CGT regime in the UK
announced by the Chancellor in October 2007. It examines the likely impact on
the sale of bonds by life companies and suggests some future strategies to
consolidate their market position.
Scope
- This report examines the current and future relationship between CGT and
the investment bond market in the UK.
- Extensive secondary research and primary research with industry
representatives was undertaken to assess the current and future bond market.
- Future strategies for life companies in the UK are difficult to determine in a
time of uncertainty.
Highlights
Although future strategies are difficult to determine in an uncertain market,
Datamonitor focuses on some key ways forward for life companies, irrespective
of whether the CGT reforms go through as envisaged.
Datamonitor concludes that there are still circumstances where investment
bonds are still an appropriate choice and therefore the outcome for life
companies may not be as precarious as some have predicted.
The CGT system is one that has continuously evolved since it was first
introduced in 1965 and therefore life companies are familiar with upheaval and
have the ability to adapt to market changes.
Reasons to Purchase
- Offers in-depth insights into the how the existing CGT structure has
advantaged life companies selling investment bonds.
- Provides detailed analysis of the proposed changes announced by the
Chancellor in his PBR and their impact on life companies.
- Assists life companies operating in the market to improve their market
position if the CGT changes go ahead as announced.
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