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Unforeseen consequences: Keiron Root finds that Gordon Brown's tinkering with pension tax relief has held back the UK stock market.(Lessons from history)

One decision that has come back to haunt Gordon Brown with a vengeance in recent weeks is the abolition of the tax credit for advance corporation tax (ACT) early in New Labour's first term, and the subsequent impact that this has had on the values of Britain's pension funds.

I am indebted to Paul Killik of stockbroker Killik and Co, who sent me a copy of a detailed analysis of the impact that the removal of ACT had on pension fund savings that he prepared a couple of years ago. In it, he argued that, although the chancellor was roundly criticised at the time ACT relief was removed, the ongoing effects have been even more significant.

As Killik says, 'The yield on the ...

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