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NU presses Government on life taxation

Norwich Union is pressing the Government not to abolish the 5 per cent withdrawal rule on life bonds in the forthcoming budget.

It says that any restriction on the rule would in isolation reduce the attractiveness of life bonds. Instead, NU is calling for a comprehensive rethink for the tax regime for all savings products and says it favours a gross roll up regime where an investment it only taxed on encashment.

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