The ABI said it was pleased by the Chancellor's decision to freeze insurance premium tax in the Budget, although it called for reductions to be made in the future.
ABI director general Mary Francis said: “IPT is generating substantial levels of revenue every year, and it would have been perverse for the Chancellor to raise the rate.
“We are pleased that he has kept the existing rate, but agree with the growing number of calls for a reduction in future.”
Commenting on other changes, Francis said: “The good news on saving is that the Chancellor has confirmed the government's plans to simplify the complex and unwieldy tax regime governing pensions. The new system will be better for savers and for the pensions industry.”
