HC Deb 11 May 1987 vol 116 c92W
Mr. Hoyle

asked the Chancellor of the Exchequer what effect he estimates the raising of capital gains will have on (a) life insurance policies and (b) mortgages linked to house policies; and what amount he estimates will be lost in basic payments.

Mr. Norman Lamont

[pursuant to his reply, 6 May 1987]: The new arrangements proposed for the taxation of companies' capital gains should generally have only a relatively marginal effect on post-tax profits reserved for holders of life assurance policies, including those with endowment-linked mortgages. The level of benefits and bonuses allocated to policyholders is however entirely a matter for life assurance companies themselves to determine.