UK Treasury delays proposals to tax surplus assets of life funds

UK tax payers with offshore with-profits policies can breathe a sigh of relief after the UK Treasury announced it would be delaying a planned tax penalty on 'surplus assets'. In the recent pre-budget report, the chancellor Gordon Brown said he would introduce a 30% tax on any investments that were being kept in reserve by fund managers to improve future returns in lean years. Mike Gogan, marketing communications manager at Norwich Union International, said: "The proposals would have meant lower returns for offshore with-profit holders who pay UK taxes." By increasing the amount of tax t...