Norwich Union praises life insurance rethink

10 December 2004
Norwich Union has praised the Government for rethinking proposals for tax changes on with profit funds.

The insurer labelled the original proposals a "piggy bank raid" on investors, savers, and pension holders.

"This is simply a piggy bank raid on the funds which support our customers' savings policies - there is no other description for it," Gary Withers, chief executive of Norwich Union Life said of the proposals.

However, the Government has now said it will give more time for consultation on the plans and has dropped them from the new regulations before Parliament.

"We are very pleased that the Treasury has listened to our concerns by deferring these proposals," Mr Withers said.

"We look forward to getting involved in the consultation on this issue and remain committed to representing the interests of our policyholders."

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