View more on these topics

L&G reports new Aviva protection products over legal ‘conflicts’


Insurers including Legal & General and Royal London are disputing whether Aviva’s new business protection products are allowable within tax rules, Money Marketing can reveal.

Aviva launched two new products on the Aviva Life Protection Solutions platform last month including a “market first” relevant life insurance with the option to add critical illness cover.

Money Marketing understands several rival providers are questioning the critical illness option with L&G confirming it is to raise the issue with HMRC.

An L&G spokeswoman says: “The addition of critical illness conflicts with our current interpretation, and that of the market, of the Government legislation with regard what is allowed within a relevant life plan.

“We are currently re-examining the legislation and will be raising the issue with the HMRC to get further clarity on the situation.”

The spokeswoman adds L&G will add the option if HMRC gives assurances it meets legislative requirements.

Royal London product architect Ian Smart says: “We are looking at this closely to form our own opinion as to whether this is actually possible but have concerns that this could prompt HMRC to think again about whether the legislation around relevant life policies is working as originally intended.”

An Aviva spokeswoman says: “On our Relevant Life launch we have liaised with HMRC and taken legal advice on this from a QC who has confirmed that our product is compliant with the relevant legislation and therefore qualifies as a relevant life plan. We take great care to assess our products before putting them into the market.”

HMRC could not be reached for comment.


The small print on new IHT rules and downsizing

Last year the Government announced measures designed to tackle the growing number of estates drawn into an inheritance tax liability through house price appreciation. The residence nil-rate band will eventually allow up to £175,000 of property wealth per person to be passed on with no IHT liability. Added to the standard nil-rate band of £325,000, […]


European regulator issues ‘closet trackers’ warning

The FCA is being urged to scrutinise Ucits funds after research by an influential European regulator revealed up to 15 per cent are “closet trackers”. Research by the European Securities and Markets Authority of Ucits funds across Europe found between 5 and 15 per cent of the funds it examined are closet trackers, but charging […]


Ucits fund merger rules could raise costs by 50%, warns IA

The new rules on fund mergers under Ucits V could increase costs by up to 50 per cent for asset management firms, the Investment Association warns. Under the Ucits V draft directive asset managers must notify all existing unit holders of a potential fund merger and must do so “on paper of (where certain conditions are met) another durable […]


News and expert analysis straight to your inbox

Sign up


There are 4 comments at the moment, we would love to hear your opinion too.

  1. But even their own consultants are saying that it’s only available due to a loophole, and we know how HMRC love to fill in a loophole!! What’s the risk to the client (and the adviser) if it’s closed in future and the client claims?

  2. Come on – it wasn’t that HMRC could not be reached for comment – you just didn’t want to wait in the queue for over two hours listening to a robot……

  3. Sour grapes on behalf of L&G?

  4. L&G should not throw stones in glass houses how noble of them!! I would first look at how the product known as business protection is distributed? In my view the biggest failure is the product governance and distribution. Business protection does not belong in the consumer realms or within a consumer IDD. It’s is in fact a commercial product with both premiums and benefits being paid to and from a business. Business protection should be left with commercial insurance brokers and should have never been allowed to be distributed through consumer channels and standard protection advisors.

Leave a comment


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