Life firms win tax battle

Professional Adviser
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threat of £1bn tax bill recedes with victory in test cases brought by Lloyds TSB and Nationwide

Life companies have won their battle with the Inland Revenue over the retrospective tax liabilities of high yield and guaranteed growth bonds. Victory in the two test cases, pending any appeal, means the threat of an estimated industry-wide tax bill of up to £1bn on such products has receded. As previously reported in Investment Week, the life divisions of Lloyds TSB and Nationwide had brought test cases to the special commission, an independent body appointed by the Lord Chancellor's office which adjudicates on disputed tax cases, over the Inland Revenue's proposed changes to the taxat...

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