In this climate of austerity, the Government is leaving no stone unturned in its attempt to balance the books of UK PLC. As a result, we a seeing yet further change to the taxation and tax reliefs afforded to registered pension and life cover schemes.
It is another change to the lifetime allowance (LTA), coming into force from 6 April, which means employers should review their current life cover scheme rules and take action now.
Essentially, employers need to ensure that, in addressing the impact of the changes coming into force on their pension schemes, they don’t undo all their good work by ignoring employees’ life assurance benefits.
The majority of life assurance benefits provided by employers are provided through a registered scheme, but it is possible for benefits to be provided via an excepted scheme.
In this Technical Update we explain the differences between the two and our recommendation to employers to urgently review the structure of their life assurance provision.
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