AVCs to offer tax-free cash in future

AVCs will be able to pay out tax-free cash under Government proposals which aim to remove the differences between these, FSAVCs, stakeholder and personal pensions. Alasdair Buchanan, communications director at Scottish Life, said the changes make AVCs and FSAVCs redundant and he sees little reason why they should continue to exist as a separate product. Still, Stewart Ritchie, pensions director at Scottish Equitable, said the changes and addition of tax-free lump sums to AVCs actually leads him to be more bullish on the future of the product. As employers also often bear the costs of o...