Q&As

S settled a UK investment bond on trust to be held for his adult children, A and B in equal shares absolutely. When the trust was established, S, A, B and the trustee were all resident in the UK for tax purposes. A is now non-UK resident, but the other parties all remain UK resident. What are the UK tax implications if the trustee assigns the life policies underlying the bond to A and B in equal shares, and A and B surrender those policies?

read titleRead full title
Published on LexisPSL on 04/07/2018

The following Private Client Q&A provides comprehensive and up to date legal information covering:

  • S settled a UK investment bond on trust to be held for his adult children, A and B in equal shares absolutely. When the trust was established, S, A, B and the trustee were all resident in the UK for tax purposes. A is now non-UK resident, but the other parties all remain UK resident. What are the UK tax implications if the trustee assigns the life policies underlying the bond to A and B in equal shares, and A and B surrender those policies?
  • Assignment of life policies by trustee to A and B
  • Surrender of the life policies by A and B

S settled a UK investment bond on trust to be held for his adult children, A and B in equal shares absolutely. When the trust was established, S, A, B and the trustee were all resident in the UK for tax purposes. A is now non-UK resident, but the other parties all remain UK resident. What are the UK tax implications if the trustee assigns the life policies underlying the bond to A and B in equal shares, and A and B surrender those policies?

We assume that the investment bond is a segmented life insurance policy to which Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005), Part 4, Chapter 9 applies and is not a personal

Popular documents