In determining the person to be charged to tax in respect of a gain arising on a chargeable event, the legislation looks at how the rights under the policy or contract are held immediately before that event (ITTOIA 2005, s. 464(1), (2)).


An individual is chargeable if he is UK resident in the tax year in which the gain arises and one of three conditions is satisfied:

(1)he is the beneficial owner of the rights under the policy/contract concerned;

(2)those rights are held by trustees of a settlement (other than a charity) of which he is the settlor; or

(3)the rights are held by another person as security for that individual’s debts

(ITTOIA 2005, s. 465(1)–(4).)

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