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Volume 456: debated on Tuesday 6 February 2007

To ask the Chancellor of the Exchequer when he will publish draft legislation on changes to (a) pension term assurance, (b) alternatively secured pensions and (c) scheme pensions. (119432)

On 6 December 2006 the Chancellor of the Exchequer announced, as part of his pre-Budget report (PBR), changes to the tax rules governing alternatively secured pensions and that measures would be introduced to prevent other pensions options, such as scheme pensions, being used as a route to pass on tax-favoured pensions savings. Work is ongoing on these issues.

The draft legislation for the main changes to alternatively secured pensions was published, along with an explanatory note, at PBR.

It was also announced that the Government would work with the pensions industry to explore in time for the Budget how the principles underlying pensions tax relief apply to pension term assurance. These discussions are ongoing.