Government delays tax legislation

The Government has delayed legislation which would increase the level of tax paid on income and gains from life fund surpluses. The Association of British Insurers secured the delay in the rush to pass the finance bill of the current parliament. The plans aim to tax the surpluses of with-profits funds at a corporate, rather than a policyholder level. This would mean that where policyholders paid 20% tax on the return, assets would now be taxed at shareholder level, which carries a 30% tax rate. Groups such as Legal & General have argued that the surpluses are an integral part of the f...