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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 assurance contribution rules will mean a reduced maximum life assurance benefit. It will also mean the end of the stand-alone life assurance benefit as any contributions under the DC tax regime will be dependent on falling within the 10% of pension contributions rule.

By setting up a personal pension contract prior to 6 April 2001 this will lock in the ability to pay larger, tax relievable, life assurance contribution.


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 […]

Mig review too late for the start of stakeholder

The pension industry believes the Government has woken up to the threat of a pension misbuying scandal but warned it may be too late for the first stakeholder clients.The Chancellor announced a review of the minimum income guarantee in Tuesday&#39s Budget.The pension industry had feared that, under current rules, saving into a stakeholder would become […]

Pensioners face future cost crunch

Workers will need to save “far more” than 10 per cent of their salaries just to get the same provision as today&#39s pensioners according to a report by the Faculty and Institute of Actuaries.Young people may have to pay as much as three time the amount paid by their parent&#39s generation.The actuaries urge pension providers […]

Carry Forward/Carry Back

Carry forward will be abolished with effect from 6 April 2001 in respect of any scheme that is subject to the new defined contribution (DC) tax regime. Although members of the DC tax regime will be able to contribute up to £3,600 per annum at any time while they are resident and ordinarily resident in […]

Industry under fire over pension freedoms

By Jamie Clark, Business Development Manager, Royal London Recent articles in the media have raised concerns about the new pension freedoms. One perceived problem is that across the industry, trustees and providers are not necessarily allowing people to take full advantage of the pension freedoms in situ. This is backed up by a recent survey by […]


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