R.I.P. MIP

This year's Budget may be best remembered for the headline-hogging cut in the top rate of tax, but a lesser-reported change could spell the end of the once-popular MIP. The Chancellor announced that, from April next year, new qualifying policy contributions would be capped at £3,600 a year, or £300 a month. This move has seemingly wielded the axe on MIPs, with Legal & General and Transact both pulling out of the market. MIPs, products offering tax-efficient saving with an element of life cover, had their heyday in the 1980s before a regulatory clampdown saw their attractiveness fad...