Director David Seaton says the firm is working with a life firm to develop a product that would be allowed under the revised PTA rules following the axing of tax relief on individual PTA policies in the Budget.
He says: “The wording in the Budget paper said personal contributions to a term assurance policy cannot get tax relief so trustees and employers could still contribute to schemes on behalf of the employee and get tax relief as long as it is not a personal contribution.”
But Standard Life marketing technical manager Andy Tully warns that the loophole may be closed. He says: “We decided not to take that route as we felt the Government would close it pretty quickly.”
A Treasury spokesman says: “The changes did not affect the relief employers are due when they pay for employees to have life insurance through a registered pension scheme. Tax relief remains due to the employer for these payments so long as they represent a genuine business expense.
“The Government reserves the right to take action in the future if it were to become evident that employers are changing benefit arrangements for staff in order to enable employees to retain tax relief on their personal life insurance.”