Budget: PTA is dead

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The government has confirmed it will no longer provide tax relief on individuals' contributions which are used to fund pension term assurance policies.

In the Budget report, the government says it has become clear providing a meaningful link between term assurance contracts and pension saving is neither practical nor commercially-viable because of the additional administrative burdens this would impose. It says the conclusion is consistent with the experience pre-A-Day, where rules for members of personal pension schemes requiring term assurance premiums to be no more than 10% of pension contributions made the products not commercially viable. It states: “Therefore, in line with the principle that pensions tax relief is provided to p...

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