05 July 2019

"Changes on life insurance and IHT a big step forward - but government urged to go further"

4 min read

 
Meera Khanna, Consumer PR Manager

Meera Khanna

Consumer PR Manager - Protection

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In response to the Office for Tax Simplification’s Inheritance Tax Review Ian Smart, Product Architect at Royal London, said: 

“The recommendation for term insurance policies to be taken out of the inheritance tax net is a step in the right direction, we would encourage the Government to go further. While the Office for Tax Simplification believes that whole of life policies are used for a combination of protection and investment, we know this isn’t the case. Very few new whole of life policies written since the retail distribution review acquire any sort of value other than on death.  We therefore call on Government to also exclude whole of life policies that do not acquire a surrender value from inheritance tax. Clarity is also needed on terminal illness benefits, which are commonly included in both term and whole of life policies.”

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Meera Khanna, Consumer PR Manager

About Royal London:

Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £130 billion, 8.8 million policies in force and 4,046 employees. Figures quoted are as at June 2019.