Life policies

Life policies, however, have the added advantage of allowing a policyholder to claim top-slicing relief. This reduces the tax bill for those who are in the basic or starting rate of tax where a policy gain takes them into the higher rate of tax. It works by averaging the gains out over the years that the policy has been in force, or by the years in the policy term when the policyholder was UK resident. This effectively increases the basic rate band for clients in this situation. I am not advocating that saving through life assurance is better than saving in pensions. However, each has it...