I doubt many readers of this site use life assurance policies as an investment platform. But if they do, the recent Budget has removed a tax break in that Capital Gains made in the name of the insurer still had an indexation allowance.
This is reported in a sensationalist manner by the Mail.
http://www.dailymail.co.uk/news/article ... h-tax.html
Policyholders in with profit funds may see lower bonuses, although you cannot cut below zero. Those in unitised funds may see less price growth. Alternatively holders of shares in life assurers may see reduced profits.
Holders of pension policies ought not to be affected.
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Life Assurance Policies
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- Lemon Half
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Re: Life Assurance Policies
The Policy Paper itself is here:
https://www.gov.uk/government/publicati ... nuary-2018
It impacts all those with chargeable assets held within a vehicle subject to Corporation Tax. Including those, for instance, who incorporated their BTLs. At least the existing indexation remains at the freezing date and the proposed lower rate of Corporation Tax in a few years’ time should reduce the potential burden for those who have a relatively low base cost in any event.
Agreed the article makes a meal of it. It was there to see when the papers were released on Budget day.
https://www.gov.uk/government/publicati ... nuary-2018
It impacts all those with chargeable assets held within a vehicle subject to Corporation Tax. Including those, for instance, who incorporated their BTLs. At least the existing indexation remains at the freezing date and the proposed lower rate of Corporation Tax in a few years’ time should reduce the potential burden for those who have a relatively low base cost in any event.
Agreed the article makes a meal of it. It was there to see when the papers were released on Budget day.
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