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Finance Bill

If one is a member of an occupational scheme, the contributions are subject to tax relief, and many such schemes clearly include death-in-service benefits. The Government are trying to remove the opportunity for those who are self-employed or not part of such a scheme to receive the tax relief on a stand-alone, pension term assurance policy. Another key principle that underpins the Government’s approach to pensions tax relief emphasises that point. The Red Book states that"““incentives for employer contributions are provided as it is more efficient for pensions to be provided on a collective basis through the employer””." What happens to those who are not in employment—the self-employed and temporary workers? They will not benefit from tax relief on a stand-alone policy. Indeed, other changes make it more difficult for them to get that tax relief. They will have to bite the bullet and not only pay the costs that we pay in our pension contributions and the sort of costs that the Exchequer pays into the parliamentary pension scheme, but get no tax relief. They are therefore hit by a triple whammy and in a far worse position than us as employees in the context of death-in-service benefit and how to fund it.