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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

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Carry Forward/Carry Back

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Industry under fire over pension freedoms

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