Insurance tax relief cut will hit 1.5 million - ABI

It said it appreciated the coalition's attempts to simplify the tax system but felt this was the wrong target to choose and could result in confusion for many elderly customers. People paying into qualifying life insurance policies taken out before 1984 currently get 12.5% tax relief on their income tax. In 1984 this was abolished for new customers, but the decision was taken to keep it for current customers as it would end on the death of individual policyholders. The government's proposals will now end this exemption. Mark Edwards, head of taxation at the ABI, said: "Whilst we...