of British Insurers (ABI) says savers face confusion and uncertainty because
the government failed to make concessions to the insurance industry on the
taxation of investment bonds.
Peter Vipond, ABI’s director of taxation, said the
proposals were made without consideration of the impact on consumers who held
investment bonds and the wider consequence for savers.
Chancellor Alistair Darling has ignored ABI’s calls to change the taxation of
investment bonds. The budget report confirmed: ‘The Government does not see the
need for any change to the taxation of life insurance bonds as a result of CGT
reform’, citywire.com reports.
The industry fears the lack of compromise from the government on the issue
could hurt insurers who sold £30bn worth of bonds in 2006. There were 5m bond
policyholders in the country, 10% of whom were higher rate taxpayers.
IR35 employment status tax rules may result in workers losing part of their income, says professional body
Committee expresses concern about costs to businesses and April 2018 implementation date
Drastically fewer offices for HMRC in the hope to reduce their running costs
An 80% increase in additional revenue for HMRC coincides with a crackdown on income tax avoidance