Protection policies must be removed from Finance Bill

Ahead of the Finance Bill standing committee’s meeting tomorrow, Stephen Haddrill, director general of the ABI, argues the government’s amendments on life insurance taxation do not go far enough and believes protection policies should be removed from the scope of the proposals. Before the Finance Bill was introduced people could put life assurance policies under trust to ensure they were outside their individual estate and did not attract a potential tax charge of 40%. But Chancellor Gordon Brown announced in his budget he would change the rules so people would not necessarily save 40% ...