View more on these topics

HMRC says pipeline PTA business will be honoured

HMRC has clarified its position on pipeline pension term assurance business and says those customers that submitted their applications by December 6 will still receive tax relief on life policies.

The industry has been calling for guidance on the treatment of pipeline business since the pre-Budget announcement on PTA two weeks ago suggested that tax relief would be withdrawn after next year’s budget.

Norwich Union head of protection product marketing Louise Colley welcomes the announcement saying the Treasury has done the right thing for consumers in honouring pipeline applications.

The statement from HMRC released today says: “Those customers who have applied for policies on or before the 6th December will be treated in the same way as those whose policies have already been issued – they will continue to benefit from tax relief, and will be unaffected by the announcement in the pre-Budget report.”

HMRC goes on to say that it recognises there will be some customers whose application was not received by the insurance company on or before December 6 even though it had been completed by the customer and submitted to the insurance company on or after that date.

In these cases as long as the application has been has been completed on or before December 6 and receipt is recorded by the insurance company by midnight on December 13, tax relief will still apply.

Insurers will have until April 5 2007 to process this business.

Colley says: “The pre-Budget announcement created considerable confusion in the Pension term Assurance market, leaving customers, advisers and providers unsure of where they stood.

“In today’s announcement, the Treasury has done the right thing for customers, ensuring that those who applied for PTA products in good faith, before the pre-Budget report will have their applications honoured.”


Recommended

Pru ponders £9bn orphan cash move

Prudential is understood to be in the process of recruiting a policyholder advocate to start the ball rolling on reattributing the inherited estate of its with-profits funds.It has been looking at ways of accessing the surplus cash from its with-profits fund for 10 years and is under pressure to free up its £9bn orphan assets, […]

Mixed messages

Scottish Widows marketing director for protection Nick Kirwan says the industry has been delivered a heavy blow over pension term assurance and with nobody knowing what is round the corner, the wrong messages are being sent out to customers.

Stop the cold-calling

Royal London is pleased to support the petition calling for a ban on cold-calling for pension and investment products. The petition, launched by IFA Darren Cooke of Red Circle Financial Planning and hosted on the Parliamentary website, calls on the Government to ban cold-calling for pensions and investment products. A similar ban is already in force […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com