§ Mr. Hoyleasked 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.