December 22, 2006
Removal of Tax Relief on Pension Term Assurance - Hot Topics Q&A
Q. I've just heard that the government are considering removing the tax relief that you receive on life assurance with tax relief (or pension term assurance as it's often referred to). What has happened?
A. In his pre-budget report Gordon Brown announced that the governement ARE reviewing this. If you have this type of policy in place already by December 6, 2006 it's probable that you will continue to receive tax relief on the premiums for the term of the policy.
If you've recently applied for a policy that has not started most life assurance companies will continue to assess your application but will not start the plan until further announcements from the Treasury. In the event that tax relief IS removed, you may be able to switch your application to a normal term policy and you'll have to pay the gross premiums.
If you've got a question you'd like to ask us just complete the form here and we'll get back to you with an answer (if we publish it we'll keep your name anonymous).
Filed under Pensions, Protection, Q&A by Ray Prince
