The Treasury is still discussing whether to scrap plans for a tax on with-profits funds after consultation with the industry, despite hopes it would be scrapped today.
Details of Inland Revenue document REV21, as announced in the additional Budget papers, reveals the Treasury is now prepared to rework original proposals for taxation of life insurance company ‘sub-funds’ relating to with-profits funds. “Proposals about excess assets – the “inherited estate” – were included in draft regulations at PBR [December 2004],” says the document. “Since then there has been a consultation exercise with the industry to refined the proposals. The outcome of that consultation is that the Finance Bill will contain an amendment to existing regulation making powers. ...
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