PTA tax removal 'benefits consumers' - HMRC

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The removal of tax relief on pension term assurance policies removes the risk of people taking out life insurance policies which are unsuitable for their needs, claims HMRC.

HMRC has published a regulatory impact assessment on its decision to remove tax relief on new PTA policies, which claims the measure gives rise to benefits for consumers, improves market efficiency and protects the taxpayer. It states: “The measure will benefit consumers in that it mitigates the risk of people taking out life insurance policies that may not be suitable for their needs and which, apart from the relief, are generally more expensive.” HMRC claims the measure will ensure consumers take decisions about life insurance on the basis of their personal needs and not on the basis ...

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