Government agrees to consult on with-profits tax

A statement just issued by the Association of British Insurers says the government is now going to allow more time for consultation on plans to tax with-profits policyholders. Instead of pushing through new regulations – requiring surplus assets of with-profits funds be taxed by 30% instead of the previous average of 10% - before Parliament the issues will be debated with the industry and brought back to the table later in 2005 as part of next year’s Finance Bill. This change to the tax treatment of with-profits funds emerged as a little-known detail of the pre-Budget report, delivere...