Treasury extends life funds tax consultation
The Treasury has climbed down over proposals to limit the consultation timefor controversial proposals to bring in a tax on life funds.
The tax, which was unveiled in the chancellor’s pre-Budget report, aims at putting a levy on the surpluses of insurers’ life funds.
Initially, the insurance industry was given just four days to respond to the tax proposals.
However, Gordon Brown has now announced that the tax will be included in a Finance Bill due to be laid before Parliament next Spring, giving the finance industry at least another three months to lobby against the proposal.
Insurers claim the tax could cost them dear.
Legal & General claims the tax would cost the company £300m over the next 15 years.