An IFA has written to Chancellor Gordon Brown protesting about the U-turn on pension term assurance and calling his pre-Budget announcement “morally indefensible”.
BFS Co IFA Richard Boddie says the U-turn on PTA discriminates against the ill and impaired and has written to the Chancellor, Shadow Tory Chancellor George Osborne and his local Conservative MP for Arundel and South Downs Nick Herbert to protest against the shock move.
Boddie’s letter to Brown says: “I cannot believe you were aware of the implications of your announcement but, with the greatest of respect, your ignorance can be no defence. Those in the Treasury who advised you should hold their heads in shame.”
Boddie says a PTA application submitted by a fit and healthy person within medical limits can be accepted almost immediately but for anyone suffering ill health or an impairment, GP reports need to be obtained by the life company and this takes time.
Boddie said he has clients who submitted PTA applications in September who are still awaiting acceptance terms and now they will be subject to new rules which discriminate against them.
Threesixty partner David Ingram says: “This will clearly disadvantage those clients who are affected as, in addition to the chance that they may die during the Revenue’s consultation period, if they should suffer an accident or serious illness, they could find themselves uninsurable or unable to find affordable rates.”