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The government is consulting on the withdrawal of relief for interest on loans to purchase life annuities, often referred to as home income plans, taken out by people aged 65 or over before 1999, as recommended by the Office for Tax Simplification in its review of pensioner taxation.
The government is consulting on the withdrawal of relief for interest on loans to purchase life annuities, often referred to as home income plans, taken out by people aged 65 or over before 1999, as recommended by the Office for Tax Simplification in its review of pensioner taxation.
Relief was initially given for interest on the full amount of a loan of any size, but it was later restricted and is now limited to interest on £30,000 of a loan. There were about 15,000 loans to people that qualified for the relief in February 2000. HMRC estimate that fewer than 1,000 individuals benefited in 2012/13, by around £400 a year.
The withdrawal would take effect from 6 April 2019.
Responses should be sent by email no later than 30 September.
