CGT change will prompt 17m policy reviews

Industry bodies, insurers and advisers have criticised Chancellor Alistair Darling after he announced the Government would not change the taxation of life insurance bonds as a result of CGT reform. Braidwoods IFA Margaret Burton says the Government “should think again” after creating an uneven playing field between bonds and collectives. “The owners of the policies are not satisfied that they were advised correctly at the time of purchase of the bonds. As with everything else these (bonds) are no longer an appropriate investment for some holders,” she says. “It is not that easy to encash...