Insurers warn Aviva's new protection product breaches HMRC rules

Rival Legal & General (L&G) has confirmed it is examining the legislation of what constitutes a CI plan and is intending to raise the issue with the Treasury. A spokesperson for L&G warned that the policy, launched by Aviva last week, conflicts with legislation laid down by the Income Tax (Earnings and Pensions) Act 2003 and the Income Tax (Trading and Other Income) Act 2005. She said: "We are currently re-examining the legislation and will be raising the issue with the HMRC to get further clarity on the situation." Relevant life plans are a tax efficient way for an employer to arr...