E1.440 Life insurance gains—introduction

Personal and employment tax

E1.440 Life insurance gains—introduction

Life insurance gains

E1.440 Life insurance gains—introduction

A life insurance policy provides cover against risk of dying, but in addition may be a vehicle for investment, where the amount payable at death or redemption represents accumulated interest on the premiums paid. The provisions described here impose a charge to income tax in specified circumstances (called a chargeable event—see E1.451) where the person holding the rights under a life insurance policy receives an amount in excess of premiums paid.

A similar charge can arise:


    •     where a contract for a life annuity is surrendered or assigned for a capital sum, and

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial