The Revenue has lifted a tax threat facing Standard Life policyholders.A-Day rule changes would have meant with-profits pension clients being taxed immediately at 40 per cent on their demutualisation windfalls, even for members who are lower-rate or nil- rate taxpayers. Standard lobbied HMRC after spotting the anomaly and the Revenue has set out draft regulations bringing the proceeds under the capital gains tax regime so shareholders will only face tax when they sell. Shareholders can use their annual CGT exemption limit, which is 8,500 for this tax year. The original plan would have affected around 40 per cent of Standard’s policy- holders who qualify for windfall payments. HMRC also confirmed that stamp duty reserve tax will not apply on the transfer of unit trust assets owned by Standard upon the comp- any’s demutualisation. This is expected to save Standard up to 30m. Standard will be adop- ting one logo across its suite of retail brands in the UK before the flotation.