Liverpool Victoria has confirmed it has temporarily suspended sales of pension term assurance until the Treasury clarifies its position following the announcement in the pre-Budget Report.
Liv Vic says it is working with HMRC and the Association of British Insurers to establish the implications of the PBR and whether tax relief will be withdrawn from stand alone PTA policies.
The provider says it will be communicating with intermediaries to inform them of its arrangements for pipeline business in the next few days.
Liverpool Victoria head of technical services Vanessa Owen says: “The Government have stated that they will work with the industry to explore how the principles of the new pensions tax regime can be applied to PTA contracts. The industry is entering into an important period of consultation and we intend to engage vigorously in that process.
“It is perhaps ironic that the PTA comment was contained in the section of the report called ‘Building a fairer society’. The abolition of PTA would cause inequality for large sections of society. In particular those who don’t have access to tax advantaged life cover through occupational schemes.
“We believe that the value of PTA will be recognised through consultation, though perhaps we may see some form of eligibility restrictions applied.”