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Hopes grow for Treasury rethink on PTA tax relief

Aegon Scottish Equitable believes the Treasury may reconsider its position over the withdrawal of tax relief on stand-alone pension term assurance.

It is urging IFAs and providers to write to the Treasury and lobby against the U-turn by citing how PTA was helping to close the protection gap. Head of marketing, protection, Rod McKie says: “There is a strong case for keeping stand-alone PTA and therefore there is a possibility that the Treasury could reconsider its position. We are hopeful it will listen.”

McKie believes it may be possible to reach a compromise and says he is cautiously optimistic of a favourable outcome for PTA providers.

The Association of British Insurers and the Investment and Life Assurance Group are meeting with the Treasury next week to put forward issues from providers and to ask for further clarification on the implications of the withdrawal of tax relief.

Royal Liver says the industry needs to know what is going to happen and whether PTA will still be sold if it is linked to a pension.

Royal Liver IFA market manager Andy Milburn says: “The feeling is that the Treasury wants to keep PTA alongside pensions and use it as an incentive to take out pensions but it is not going to happen. What are the logistics if a customer has a pension with a different provider to the provider supplying the life policy?”


Home-reversion exam from CII

A new home-reversion plan exam unit is to be offered by the Chartered Insurance Institute to coincide with the introduction of more stringent FSA authorisation requirements to improve consumer protection.

Union to fight WH Smith over final-salary closure

WH Smith’s plans to close its final-salary pension scheme for future accrual have angered trade unions.Around 1,800 shop and office staff will be transferred into the money-purchase scheme along with 700 distribution workers at Smiths News, formerly part of WH Smith Group.The two firms have written to employees proposing the changes and pledged to honour […]

Which? warning over 125% homeloan deal

Consumer body Which? says borrowers should avoid BM Solutions’ Mortgage Plus product as it will put them in negative equity.The product was launched in November to rival Northern Rock’s similar Together product, combines a secured and unsecured loan that can add up to 125 per cent of the property value.But brokers have criticised Which?’s stance, […]

New Star ponders retail global property

New Star is investigating launching a retail version of its institutionally managed global property fund.The highly leveraged portfolio was established in April last year and has already reached $1bn in size.The fund is designed for wealthy investors and has a minimum investment of $5m, with investors subject to a seven-year lock-in.Managing director of UK retail […]

Life cover for life

Jennifer Gilchrist Proposition Lead – Design, Royal London When someone mentions whole of life plans, most people will think of a niche product that serves as an inheritance tax planning tool for high-net-worth clients. And it’s really not surprising they’ve been pigeonholed in that way because before the arrival of RDR in 2013, that’s more […]


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