Life Assurance Print
In April 2006 the pension changes meant that, in common with all pension contracts, the limits on contributions towards life insurance via a pension contract were removed. It was anticipated that many people would take advantage of life assurance with income tax relief on the premiums. It therefore came as a shock in December 2006 when the chancellor announced that he was going to consult with the pensions industry with a view to removing tax relief on the premiums for all policies proposed after 13 December 2006. These changes were implemented in the 2007 Budget. Existing contracts retain the tax relief, but great care must be taken if existing policies are altered in any way.