The government intends to abolish the tax relief on life assurance premiums and life assurance premiums paid by employers under employer-financed retirement benefit schemes after 2012 in future finance bills or other legislative vehicles, with a final date set out after consultations.
Based on the recommendations of the Office of Tax Simplification’s (OTS) review of tax reliefs, and continuing work from HM Revenue and Customs, the government intends to abolish 43 tax reliefs overall.
According to Chancellor George Osborne, this will help to reduce complexity, be efficient and support growth.
The OTS published its final report on 3 March 2011 in which it recommended 40 reliefs should be abolished. The government will consider the other areas raised in the report within a wider programme of work for the OTS.
Read more articles on the budget’s impact on benefits