Commentary

E1.447 Life insurance gains—personal representatives

Personal and employment tax

E1.447 Life insurance gains—personal representatives

E1.447 Life insurance gains—personal representatives

There are two possible treatments of a gain where the rights under the contract are held by personal representatives of a deceased person's estate.

If an individual was liable for tax on a gain under the contract but would not be treated as having paid tax at the basic rate (see E1.455A), the gain realised by the personal representatives is chargeable on them as savings or investment income1.

Otherwise, the gain is treated as part of the aggregate income of the estate (see Division I4.5)2.

Note that if the policy is a restricted relief qualifying policy the disregards

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