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ABI goes direct in last-ditch parallel plea

The ABI has embarked upon a last-ditch stakeholder campaign by trying to

amend the Chancellor&#39s Budget legislation.

Having failed to convince the Inland Revenue, the DSS and the Treasury in

arguments on parallel pension holdings, life insurance proposals andtax

relief on advice, the ABIhas taken the radical step of directly lobbying

MPs on the Finance Bill committee.

The committee analyses the Finance Bill on a clause-by-clause basis before

it becomes law. It is currently discussing clause 60 which relates to

stakeholder.

The ABI has written to committee members, urging them to amend the bill

to allow parallel holding of occupational and personal pensions and

reconsider proposals on life insurance and tax relief for advice under

stakeholder.

In the letter, the ABI says: “The association is concerned that if the

position on life insurance remains unchanged, it is unlikely that insurers

will be able to offer life insurance as part of a pensions package.

“It would also represent that unless the definition of allowable

contribution for tax purposes is changed, individuals will pay a higher

charge than necessary for important additional services such as advice.”

But committee members suggest such a move is unwise and could make the

Government more determined to push through the legislation.

Scottish Life head of communications Alasdair Buchanan says: “We support

the ABI in raising this issue again. The Government must be made aware of

the problems its proposals are likely to cause through increased

complexity.”

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