However, Tom McPhail, head of pensions research at Hargreaves Lansdown, has taken the statement, which formed part of Brown’s pre-budget speech today (December 6), as a clear indication that PTA will go.
He says: “The wording is clearly ‘this is wrong, it is going to go.'”
McPhail says the scrapping of PTA will create mass uncertainty for individuals who have already bought policies.
“Does it mean, for example, these people will have to pay higher premiums because of the loss of tax relief?'”