New HMRC life insurance tax relief revealed.
The HMRC have revealed new stricter limits on tax relief available on life insurance policies, which was been used to reduce the cost of life insurance policies.
The plans were announced in the budget in April, but the exact extent of the plans has only been revealed this week. From 6th April 2013, tax relief on life insurance policies will be limited to £3,600 a year, with transitional rules applying to all policies taken out between 21 March this year and 5th April 2013.
In 1968, the government introduced a scheme which would see special rules apply to life insurance policies whereby investment gains would in some cases not be subject to corporation tax.
The new rules will see an increase in the cost of life insurance policies, as life insurance providers can no longer take advantage of tax breaks in the same way. With just £3,600 worth of relief each year instead of the relief currently experienced customers face paying more as the costs to run life insurance policies increase for the companies offering life insurance.
One way to avoid paying a higher rate is to buy life insurance now whilst the cost of life insurance is still lower. Here at life insurance quotes we offer you the opportunity to compare different life insurance providers, helping you to save money, and find the best policy for you at the same time.
With a number of different life insurance policies on offer, and many different types of life insurance you can use the information on the website to help make up your mind and then buy life insurance directly online, without having to leave your sofa.
Even a saving of £10 a month can equate to a saving of thousands of pounds over the typical lifetime of a policy, money we are sure you’d rather have in your hands than in the hands of the insurance companies of the government.