"With-profits tax" could still hit policyholder returns

Specific details of the Finance Bill 2005, published yesterday, reveal the government is implementing powers which gives itself the right to alter life assurance tax rules. This allows the Treasury to press ahead with proposals to place a 30% tax on life insurance company 'sub-funds' surplus assets were first announced in the pre-Budget report last December, although the industry is still said to be in consultation on the matter. New "with-profits" tax rules are intended to replace a previous, albeit more complex, tax arrangement which charged an average 10% - amounting to an average ...