Q&As

Does stamp duty apply to the assignment of a life insurance policy?

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Published on: 13 December 2017
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The stamp tax analysis of an assignment of a life insurance policy will depend on the mechanics of the assignment and whether the policy is a marketable security.

Stamp duty was abolished on life insurance policies by Finance Act 1989 (FA 1989), s 173 (now repealed) with effect for instruments made after 31 December 1989.

Stamp duty should only apply if any assignment or transfer falls within the general charging provisions listed below.

Subject to exemptions and reliefs, UK stamp duty applies to:

  1. •

    instruments of transfer relating to stock or marketable securities (such as stock transfer forms)

  2. •

    instruments effecting a transfer of any interest

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Stamp duty definition
What does Stamp duty mean?

A transfer tax payable on documents and instruments, rather than in respect of a transaction. It is most commonly encountered on the transfer of UK certificated shares, where the stock transfer form is the instrument that is stamped.

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