Pipeline PTA business was valid up to a week after the pre-Budget report shock U-turn, HM Revenue and Customs has revealed.
It says pipeline business will be unaffected by the PBR move and says applications received by insurance companies up to midnight on December 13 will receive tax relief.
Torquil Clark Life Insurance director Jason King says some distributors were immediately rebroking pipeline business to ordinary term policies following the announcement on December 6.
But in light of HMRC’s statement this week, there was still a seven-day window for these policies to be submitted, meaning some customers will have unnecessarily lost tax relief.
King says: “It is abysmal that HMRC could not have consulted with the industry before the pre-Budget announcement and we could have avoided this whole shambles in the first place.”