The ABI has issued a comment on the announcement that insurers will now have until 31 July 2007 to process both ‘pipeline' Pension Term Assurance applications received before 13 December 2006, and life assurance bought by midnight on 12 April 2007 with a personal pension and intended to be part of the protection provided by that pension.
Stephen Haddrill, the ABI's Director General, said: “The Government's decision to remove tax relief from PTA was unnecessarily complex and bad for consumers. We are pleased that the Government has worked with the ABI to find solutions to the some of the problems the Budget statement led to. We look to it to learn from the review of the way in which it handled the PTA issue that it is currently undertaking.
“We will press politicians of all parties to raise the issue during Parliamentary debates on the Finance Bill. Politicians of all parties will want to know why it is no longer possible to get tax relief on life assurance cover bought with a personal pension.”
