The Future for Pension Term Assurance
Posted by: Jason King
February 16th, 2007.
It is now over two months since the government threw the life insurance industry into turmoil with its dramatic U-turn on Pension Term Assurance. We were promised that the HMRC would consult with the industry in an effort to make a decision on the future by the end of January 2007 and in time for the budget in March.
Views in the market are mixed, consultation has certainly taken place but few seem to know (or be willing to divulge if they do) where PTA is headed.
I am pleased that after the initial mass confusion the situation is being handled sensibly. We have lobbied our local MP, Rob Marris, on behalf of our clients on this issue and trust that this has found its way through to Gordon Brown and his team.
I am optimistic that we will see some kind of future for Pension Term Assurance in the budget. However the mass ‘give away’ that we had for a short period of time will not return. I believe that tax relief on life insurance premiums will be obtainable but only if you are also contributing to a pension savings pot as well…time will tell.
This entry was posted on Friday, February 16th, 2007 at 11:26 am and is filed under Life Insurance.
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