As you may know the Government no longer allows new pension term assurance plans to benefit from tax relief. However, if the policy was brought into force before this change was announced, and as long as the client remains eligible, then we can continue to claim basic rate tax relief at source on the client’s behalf.

It is therefore important that we make sure that each client who applied for the Tax Efficient Life Insurance Plan (TELIP) is still eligible for the tax relief that it provides. To do this, we will shortly be sending clients a  letter  that explains the eligibility requirements to them again and contains a declaration of eligibility. We will also send them a leaflet explaining what is needed to qualify under those eligibility requirements. 

There may be a few cases where clients since taking out the policy are unable, or become unable, to meet the definitions outlined in the Declaration and are therefore not eligible for tax relief on their premiums. If their situation has changed, or changes, they must let us know as they may no longer be eligible for tax relief.

If the client’s situation has not changed, and they remain eligible for tax relief they will not need to take any action. Please note that we have recommended that clients should speak to their Financial Adviser if they have any queries on the received letter and leaflet.

Our specialist Protection sales team are only a phone call away. If you would like further information on the above, please contact us .