Commentary

E1.454 Life insurance gains—personal portfolio bonds

Personal and employment tax

E1.454 Life insurance gains—personal portfolio bonds

E1.454 Life insurance gains—personal portfolio bonds

The rules described in E1.454A–E1.454E apply where a policy or contract is a personal portfolio bond ('PPB') at the end of an insurance year which is not the final insurance year1.

Such a bond enables the holder to nominate a portfolio of investments on which the interest and capital gains are deferred until the bond matures. These rules provide that income and gains are deemed to arise each year as they accrue.

The Treasury may make regulations regarding the administration of the charge to tax in respect of PPBs2.

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