Treasury widens door to friendly society purchase

clock

The Treasury is changing the rules governing the status of friendly society investment plans so policyholders are not penalised if the business is transferred to another insurance company.

According to a note issued yesterday by HM Revenue & Customs as part of the 2006 Pre-Budget Report, friendly society policyholders can hold onto the tax-exempt status of their life or endowment policies in situations where business is “transferred” to another friendly society, but would lose that tax-exempt status if the business was transferred to an insurance company. HMRC’s PBR note 10 states: “Under current law, if such tax-exempt policies are transferred to another friendly society, they retain their tax-exempt status. However, on transfer of business to an insurance company, the b...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Looking beyond the oil shock

Looking beyond the oil shock

'A few weeks ago, there was genuine reason for optimism'

Fahad Hassan
clock 27 July 2026 • 4 min read
What does a new PM and chancellor mean for investments?

What does a new PM and chancellor mean for investments?

'What is important is what happens over the long term'

Jasper Thornton Boelman
clock 23 July 2026 • 4 min read
SJP rebrands global equity income fund and reduces charges

SJP rebrands global equity income fund and reduces charges

Appoints Acadian as investment adviser

Patrick Brusnahan
clock 22 July 2026 • 1 min read