The Treasury has extended the deadline for the processing of pipeline pension term assurance business to midnight on 31 July, following lobbying by the Association of British Insurers.
The original deadline was 6 April, but the Treasury has extended it to midnight on 31 July to allow appropriate medical evidence to be checked and an appropriate commencement date for cover to be settled.
It states: "In all cases where an application for life insurance cover has been submitted to the insurance company and receipt recorded by that insurance company by midnight on 13 December 2006 the tax relief will apply, provided that the ‘sum assured’ under the policy is no greater and the term no longer than that applied for.
"Insurers will now have until midnight on 31 July 2007 to process this business, so that appropriate medical evidence can be checked and an appropriate commencement date for cover settled."
The Treasury has also announced applications for term assurance which were sold as part of a personal pension scheme and are submitted to the insurance company before midnight on 12 April will continue to benefit from tax relief and will be unaffected by the Budget if the sum assured is no greater and the term no longer than that applied for.
Insurers have until midnight on 31 July to process this business and any variation made to such a policy will not cause it to lose tax relief if the application for the variation was fully completed and submitted before midnight on 12 April.
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