Commentary

E1.455A Life insurance gains—income tax treated as paid

Personal and employment tax

E1.455A Life insurance gains—income tax treated as paid

E1.455A Life insurance gains—income tax treated as paid

Individuals and trustees are treated as having paid income tax at the basic rate, but that tax is not repayable1. If the amount of the gain assessed is reduced by other deductions, the tax treated as paid is correspondingly reduced2. The reason for tax being treated as paid is that the insurer will usually have paid tax on the profit giving rise to the charge. The exceptions listed below are cases where the insurer will not have paid UK tax on the profits.

Exceptions

Income tax is not treated as paid, except for the calculation of top slicing relief (see E1.455B), in respect of gains from the following policies and

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