On the day the Government announces next year’s Budget day as 21st March it also confirms the removal of Life Assurance Premium Relief effective from 2015. This move will raise very little extra income for the Government but could impact on the retirement plans of hundreds of thousands of retirees.
Life assurance policies effected before March 1984 receive 12.5% tax relief on the premiums and its removal will lead to higher premiums or a reduction of policy benefits, or both. A potentially confusing situation for the retired community and those planning retirement to deal with.
