Overview

This bill provides funding for compensation payments to individuals negatively impacted by the misregulation of Equitable Life Assurance Society before December 2001. It ensures the Treasury can make these payments and clarifies how they are treated for tax purposes.

Description

The Equitable Life (Payments) Bill authorizes the Treasury to make payments to individuals harmed by the maladministration of Equitable Life Assurance Society before December 2001. The bill allows the Treasury to pay out this compensation using money supplied by Parliament. Specific details about the payment amounts and eligibility criteria are determined by the Treasury through separate orders.

The bill further clarifies that these compensation payments can be disregarded (to a degree determined by the Treasury) when calculating tax liability, entitlement to tax credits, or obligations under other legislation. The bill requires parliamentary approval for any order outlining this disregard. It also assigns the management of these payments to the Director of Savings (as appointed by the Treasury). The bill applies to enactments from across the UK including England, Scotland, Wales, and Northern Ireland.

Government Spending

The bill allows for expenditure on compensation payments to be met from public funds. No specific figures are mentioned in the provided text regarding the total amount of government spending allocated for these payments.

Groups Affected

The main group affected are policyholders of Equitable Life Assurance Society who suffered financial losses due to regulatory failures before December 2001. This bill provides them with a mechanism for compensation. The bill also affects the Treasury, the Director of Savings and Her Majesty's Revenue and Customs (HMRC) as they are responsible for the administration and tax implications of the payments.

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