The Association of British Insurers (ABI) has come out against government plans to end life assurance premium tax relief on policies taken out before 1984.
The concession was removed for new policies in 1984 but according to the ABI, there are still around 1.5 million policies in existence that benefit from the 12.5% tax relief.
The Association’s head of taxation, Mark Edwards, says the change will affect hundreds of thousands of people, many of whom are retired and on low incomes.
He also believes that getting rid of the relief will lead to confusion, explaining: “People with affected policies will now have to get to grips with what this change means for them and get financial advice to understand the impact it could have on their policies and benefits.”
Story link: ABI opposes life assurance tax change
by Gill Montia