Association of British Insurers: Response to government change on anti-forestalling rules

Association of British Insurers: Response to government change on anti-forestalling rules

Association of British Insurers: Response to government change on anti-forestalling rules

Responding to the Government’s tabled amendment of the rules concerning pensions tax relief today, Peter Vipond, the ABI’s Director of Financial Regulation, said:

“While not a perfect solution to the annual payment issue this is progress and to be welcomed. We will continue to press for further relief for unfair cases to be dealt with through regulations, and we maintain that the changes in pensions tax announced in the Budget were a retrograde and misguided step to take.

“Today’s amendment is good news for those who have previously made their pension contributions annually, for instance the self-employed. The ABI continues to be in discussions with the Government over the proposed rules.”

The original rule meant those who did not have regular quarterly or monthly pensions contributions were to be limited to receiving full tax relief on only the first £20,000 of contributions. The amendment today changes that to the smaller of, either the average of an individuals last three years contributions or £30,000. The rule was introduced to stop abuse of the relief system ahead of the proposed reduction in pension tax relief for high earners.

Notes

1. Enquiries to:
Jonathan French 020 7216 7392 (Mobile: 07958 330 480)
Malcolm Tarling 020 7216 7410 (Mobile: 07776 147 667)
Erfan Hussain 020 7216 7411 (Mobile: 07712 841 184)
Kelly Ostler-Coyle 020 7216 7415 (Mobile: 07968 364 302)

2. The ABI is the voice of the insurance and investment industry. Its members constitute over 90 per cent of the insurance market in the UK and 20 per cent across the EU. They control assets equivalent to a quarter of the UK’s capital. They are the risk managers of the UK’s economy and society. Through the ABI their voice is heard in Government and in public debate on insurance, savings and investment matters.

3. An ISDN line is available for broadcasts.

4. More news and information from the ABI is available on our web site, www.abi.org.uk