MPs 'misled' over Budget stealth tax, claims Steve Webb

‘Still time for scrutiny’

Julian Marr
clock • 2 min read

A letter being issued by the Treasury concerning a new tax introduced in the Autumn Budget has revealed MPs have not been told the full story about the change, according to Royal London director of policy Steve Webb.

Prior to the 2017 Budget, individuals with money invested through insurance companies benefited from a tax break that meant any investment growth that simply kept pace with inflation was not subject to tax. Last November, however, Chancellor Philip Hammond announced this ‘indexation allowance' would no longer apply from January 2018. In papers published on the day and still displayed on the gov.uk website, the government claimed: "This measure has no impact on individuals or households as it only affects companies." When the measure was announced, Royal London argued more than three mill...

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