View more on these topics

Zurich chief calls on Govt to offer IP tax rebate

Zurich UK Life chief executive Gary Shaughnessy has written to the Chancellor to push for a tax rebate to be introduced for income protection plans.

In a letter to George Osborne last week, Shaughnessy cited the insurer’s own research which suggested a £50 rebate for policyholders, payable annually for two years, would cost the Government around £300m. 

This would then be offset by higher tax revenues and reductions in welfare payments.

Shaughnessy said individuals who are kept from working due to a disability receive £190m more from insurance than they would have through benefits, resulting in a saving after costs of £185m for taxpayers.

He estimates there would be an annual potential benefit of £725m to taxpayers if the coverage of group schemes in the UK rose to the same level of coverage in America.

In his letter, Shaughnessy says: “We think a £50 a year incentive from Government, lasting for just two years, aimed purely at basic-rate taxpayers who have or take up IP, would provide a huge impetus to the market.

“Zurich’s own calculations suggest the cost of such an incentive would be around £300m in total but should be offset by the increased tax revenue and substantial reduction in welfare payments made.”

Plan Money director Peter Chadborn says: “Anything that can be done to encourage people to take control of their finances, has to be good for the individual and, in turn, good for the Government.

“The amount is not the key thing here, this is about encouraging people to protect themselves properly.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com