The Treasury will not axe tax relief on compensation for certain previous pension mis-selling cases as previously planned.
However, in the light of consultation responses the Treasury has decided not to levy income or capital gains tax on compensation payments, it was announced in a government response today.
It was not known at the time of the proposal how many people had yet to come forward and claim compensation for pension mis-selling in the period.
However, new evidence to the consultation, which closed in August, suggested up to 25,000 investors are still owed money.
The original suggestion had been to impose a 2017 deadline for all claims for compensation, but due to the number of policy holders still left, the policy has been abandoned.
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