§ Mr. Matthew BanksTo ask the Chancellor of the Exchequer what plans he has for the taxation of life assurance policyholders. [42361]
§ Mr. JackThe Government have decided to defer the proposals for the reform of policyholder taxation, which were promised for inclusion in this year's Finance Bill, to allow a longer period for consultation with interested parties.
As a result, the system of certification of life insurance policies by the Inland Revenue, which was to be abolished with effect from 6 May 1996, will continue for the time being. It is intended that legislation to give effect to this proposal will be included in this year's Finance Bill.
The Government intend to publish next spring draft clauses and proposed secondary legislation aimed at giving effect to the proposed reform with a view to the inclusion of the clauses in a future Finance Bill. This would enable the Inland Revenue to consult interested parties on the proposed changes and allow those parties more time to assess their impact and prepare for them.