According to budget documents HMRC will introduce measures to combat tax avoidance on insurance policies, capital redemption polices and annuity contracts.
No clients, who purchased their product via Green Financial, will be affected by this.
The measures apply to so-called cluster arrangements where tax charges are confined to just one segment of life assurance bond.
Green Financial have always considered this very aggressive tax planning and subject to threat of legislation or query by the authorities.
With the 'cluster policies' an example would be a bond holder who wants access to their cash before the end of the bond who then redeems nine segments of a ten segment bond while the taxable gains are applied only to the tenth.
It is still the case that with investment bonds we recommend due care and attention should be made to how withdrawals are taken, so as not to trigger unneccesary tax - but this is not to be confused with the type of plan and action the budget has outlawed.
If you are a Green Financial client and have any questions regarding this matter or your investment, please contact us.
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