HM Revenue and Customs (HMRC) has altered the regulations concerning its approach to tax relief on personal contributions to pension term assurance contracts. With immediate effect, any pension term assurance policy will lose its tax relief if, for any reason whatsoever, either:
payments are missed; or
payments are not made by the premium due date.
For most PTAs written under a Personal Pension or Free Standing Additional Voluntary Contribution scheme (issued after 30 June 1988), a missed or late payment will result in a lapsed policy, and life cover will be lost. It will not be possible to re-instate the life cover.
The main exception to this are Retirement Annuity Contracts (issued before 1 July 1988). Whilst a late or missed payment will result in a policy lapsing, and the consequent loss of life cover, we will consider re-instating that life cover and accepting further premiums, but those premiums would not be eligible for tax relief.
Please note it will not be possible to effect a new pension term assurance policy with any of the subsidiary companies of Pearl Group Ltd should existing contracts lapse.
Pearl Assurance Limited No. 1419, London Life Limited No. 1179800, NPI Limited No. 3725037 and National Provident Life Limited No. 3641947 are authorised and regulated by the Financial Services Authority. All companies are registered in England and have their registered office at: 1 Wythall Green Way, Wythall, Birmingham, B47 6WG, Tel: 01564 204321. We may record or monitor telephone calls. Important Company Registration and Legal Information.
