Budget's subtle tax change will affect millions of savers - Steve Webb

In the Budget delivered to parliament on Wednesday, Chancellor Philip Hammond announced the freezing of ‘indexation allowance' for corporation tax - a change the Treasury expects to raise more than half a billion pounds each year once it is fully implemented.  Royal London's analysis has indicated savers with products such as endowments and whole-of-life polices with insurance companies will be affected by the measure. Under current rules, when these investment products grow, tax is paid only on the ‘real' return - that is, the growth above inflation. From 1 January 2018, however, tax...