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EPP sales boom as de minimis is scrapped

Executive personal pension business boomed last month in a "buy now while stocks last" campaign run following the Government&#39s decision to scrap the de minimis limit.

The Inland Revenue gave life offices until the end of March to scrap the de minimis limit.

The limit allowed company directors to contribute up to £6,000 a year to a pension without undergoing a Revenue funding check. It has now been replaced with a 17.5 per cent annual earnings limit.

Standard Life and Commercial Union doubled their EPP business in March compared with the same month last year. Axa Sun Life boosted new business by 20 per cent and Scottish Life saw a 160 per cent rise.

CU pensions development manager Iain Oliver says: "We have seen business rise tremendously on February this year and March last year. It has not been all de minimis but a significant part can be put down to this."

EPP-holders who contributed before the end of March will have three years before being affected by the change.

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