Gordon Brown's budget has confirmed the death warrant for
pension term assurance that appeared in the Pre Budget Report in 2006, unless
the insurer received the application for the policy before 14 December 2006
and the policy was taken out as part of your pension scheme before 6 April
The measure removes your entitlement to tax relief on any pension contributions
you pay that are used to fund personal term assurance policies. It does
not affect the relief available for contributions paid by employers.
Where relief remains available for contributions paid on or after 1 August
2007 (for occupational schemes) or on or after 6 April 2007 (for other
schemes), the individual will cease to be entitled to relief if the policy
to which the contribution relates is varied outside its original terms
so as to increase the sum assured or lengthen the term. However, if there
is an option under the policy which is then exercised this will not affect
the relief due.
The change to be introduced in Finance Bill 2007 will mean that individuals
will no longer get tax relief on pension contributions that are used to
pay premiums under personal term assurance policies. A term assurance
policy will be regarded as personal to the individual if it terminates
the first time an insured person dies, as with all single life policies
and most joint life policies, or if all the insured individuals are members
of the same family.
The Finance Bill legislation will also provide new powers to pass secondary
legislation which will enable the Government to act quickly to remove
relief from new products sold with a view to avoiding the new restrictions
on tax relief.
here for a complete list of low cost UK car insurance