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Failure to give tax relief on PMI rued by industry

The Chancellor&#39s decision to freeze insurance premium tax has been warmly welcomed by health insurers and intermediaries.

IPT has been described by the industry as adding no value to the policy but making easy money for the Chancellor.

Product providers had feared the Chancellor would increase the tax, set at

5 per cent, to around 7 per cent on Budget day.

Insurers are also welcoming the extra £2bn funding for the NHS but feel an opportunity has been missed to establish a healthier relationship between the public and private sectors through tax relief.

Legal & General Healthcare managing director John Castagno says: &#34The freeze on IPT is good news for the sector as it will make private medical insurance available to more people.&#34

Association of Medical Insurance Intermediaries chairman Bill Poynton says: &#34If the promised £2bn injection for the NHS is genuine new money, then it is great news. I would have liked to have seen tax relief implemented to foster a better relationship between the public and private sectors though.&#34

Prime Health managing director Mike Hall says: &#34The stronger the NHS, the better for the private sector but there is a long-term need for a public-private partnership in healthcare that is not being addressed.&#34


Quicker rewards from enterprise

Venture capital trusts and enterprise investment schemes have been given a boost in a bid to make them more attractive to investors by cutting the minimum holding period.Tax reliefs available via VCTs and EISs are on condition that the investor remains the beneficial owner of the shares for five years.But the minimum holding period to […]

Life Cover

Life assurance contributions under the new DC tax regime are to be restricted to 10% of the pension contributions paid under that tax regime. Clients with personal pension contracts set up prior to 6 April 2001 will, however, retain the existing 5% of net relevant earnings limit. For most individuals the change to the life […]

Abolition of ACT gives “its” a boost

Deutsche Bank says that the abolition of Advance Corporation Tax and the on going &#39its&#39 campaign have provided an opportunity for investors. It forecasts benefits from deregulation of European stock markets and greater harmonisation of tax in the EU.On-line internet dealing will revolutionise the sector for private investors and retail investors will own 55 per […]

North South housing divide may be closing

The latest survey by the Royal Institution of Chartered Surveyors shows the first signs the North-South gap in house prices may be starting to close.Over the last month there has been a sharp upturn in the property market in the North West and Yorkshire & Humberside, with further strengthening in the Midlands and Wales. Even […]


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