Insurance policies

Accident insurance policies, chargeable events and gains

Legislation/Regulatory – SP 6/92

Additional premiums

Legislation/Regulatory – ICTA88 Sch. 15, para. 16

Annual payments

Commentary – Essential Tax Companion ¶8450

Legislation/Regulatory – FA96 s. 165(4), (5)

Appropriate percentage, meaning

Legislation/Regulatory – ICTA88 s. 268(5)

Assignment on divorce

Legislation/Regulatory – IRInt. 257

Back-to-back schemes

– see Back-to-back arrangements

Benefits

Legislation/Regulatory – ICTA88 Sch. 15, para. 1(7)

Calculation of taxable rental income

Commentary – 3.1.18

Capital gains tax

Capital sums derived from assets

Legislation/Regulatory – TCGA92 s. 22, 23, 204(2)

Disallowance of premiums as expenses

Legislation/Regulatory – TCGA92 s. 205

Gains on disposal of rights/interest in rights

Legislation/Regulatory – TCGA92 s. 210

HMRC Guidance – CG12613 ; CG69040 ; CG69041 ; CG69042 ; CG69043 ; CG69044 ; CG69050 ; CG69051 ; CG69055 ; CG69061 ; CG69062 ; CG69071 ; IPTM1560 ; IPTM2060 ; IPTM3120

Life assurance business

Legislation/Regulatory – TCGA92 s. 204(3)

Non-deferred annuities

Legislation/Regulatory – TCGA92 s. 204

Rights under

Legislation/Regulatory – TCGA92 s. 204(1)

HMRC Guidance – CG69041

Capital gains tax exemption

Commentary – Essential Tax Companion ¶15030

Capital sum

Payable on any event

Legislation/Regulatory – ICTA88 Sch. 15, para. 1(9)

Payable on death

Legislation/Regulatory – ICTA88 Sch. 15, para. 1(5)

Chargeable events

Accident insurance policies

Legislation/Regulatory – SP 6/92

Generally

Commentary – Essential Tax Companion ¶8805

Rebated or reinvested commission

Legislation/Regulatory – FA2007 s. 29(4) ; ITTOIA2005 s. 541A, 541B

Chargeable gains

– see Gains on life policies/life annuities and capital redemption policies

Claim for repayment of any excess

Legislation/Regulatory – ICTA88 s. 270(4)

Collection of tax

Legislation/Regulatory – ICTA88 s. 272

Commissions

Generally

Legislation/Regulatory – SP 4/97

Rebated or reinvested

Legislation/Regulatory – FA2007 s. 29(4) ; ITTOIA2005 s. 541A, 541B

Connected policies

Legislation/Regulatory – ICTA88 Sch. 15, para. 13, 14

Consideration for surrender of rights

Legislation/Regulatory – ICTA88 s. 271(1)

Consistency of tax treatment within EU

Case Law – Försäkringsaktiebolaget Skandia (publ) and Ola Ramstedt v Riksskatteverket (Case C-422/01). [2003] BTC 435

Deductions for payments to trade unions and police organisations

Commentary – Tax Reporter ¶115-592–Tax Reporter ¶115-596

Deemed surrender of loans

Legislation/Regulatory – ICTA88 s. 271

Due date for payment

Legislation/Regulatory – ICTA88 s. 272(2)

Early conversion

Legislation/Regulatory – ICTA88 s. 268

Employee liabilities and indemnity insurance

Legislation/Regulatory – ITEPA2003 s. 346-350, 556A

Employees liabilities and indemnity insurance

Commentary – Tax Reporter ¶457-000–Tax Reporter ¶457-100

HMRC Guidance – EIM30519

Case Law – A Guarantor v. R & C Commrs

Endowment assurances

Legislation/Regulatory – ICTA88 Sch. 15, para. 2(1)

Exceptional disability/mortality risk

Legislation/Regulatory – ICTA88 Sch. 15, para. 12

Family income policies

Legislation/Regulatory – ICTA88 Sch. 15, para. 9

Fee protection

Commentary – Tax Reporter ¶217-650

HMRC Guidance – BIM45525 ; BIM45565 ; BIM46452

Fee protection insurance, premiums

Legislation/Regulatory – IRInt. 247

Free gifts

Legislation/Regulatory – ESC C37

Friendly societies

– see Friendly societies

Gains

– see Gains from policies and contracts

Gains on

Generally

Commentary – Essential Tax Companion ¶8800

Health or employment risk, exemption from tax

Aggregation of policies where employment ends for health reasons

Legislation/Regulatory – ITTOIA2005 s. 741

Conditions to be met where policies linked

Legislation/Regulatory – ITTOIA2005 s. 740

Conditions to be met, policy providing other benefits

Legislation/Regulatory – ITTOIA2005 s. 739

Generally

Legislation/Regulatory – ITEPA2003 s. 325A, 735

Insured, meaning

Legislation/Regulatory – ITTOIA2005 s. 742

HMRC Guidance – IPTM6110

Meaning

Legislation/Regulatory – ITTOIA2005 s. 736

HMRC Guidance – IPTM6115

Pension or annuity payments

Legislation/Regulatory – ITEPA2003 s. 644A

Period for which payments may be made

Legislation/Regulatory – ITTOIA2005 s. 737

HMRC Guidance – IPTM6110 ; IPTM6115

Policies for the benefit of others who contribute to premiums

Legislation/Regulatory – ITTOIA2005 s. 743

HMRC Guidance – IPTM6120 ; IPTM6150

Risk of significant loss

Legislation/Regulatory – ITTOIA2005 s. 738

Home income plans

Commentary – Essential Tax Companion ¶3080

Immediate needs annuities, exemption from tax

Legislation/Regulatory – ITTOIA2005 s. 725, 726

Incentives

Legislation/Regulatory – ESC C37

Increased annual premiums

Legislation/Regulatory – ICTA88 s. 268(6)

Indemnity insurance

Commentary – Tax Reporter ¶457-000–Tax Reporter ¶457-100

Legislation/Regulatory – ITEPA2003 s. 346-350, 556A

HMRC Guidance – EIM30519

Case Law – A Guarantor v. R & C Commrs

Individual savings accounts, qualifying investments

Commentary – Tax Reporter ¶316-500 ; Tax Reporter ¶316-650

Industrial assurance business

Legislation/Regulatory – ICTA88 Sch. 15, para. 2(2), 7, 8

Information, duty of insurers

Legislation/Regulatory – ESC C33 ; ICTA88 s. 552, 552ZA ; SI 1997/265

Inheritance tax

Gifts subject to reservation

Commentary – Tax Reporter ¶613-950

Inheritance tax, transfer of value

Case Law – Smith & Ors v. R & C Commrs (2007) Sp C 605

Investment life insurance contracts

– see Investment life insurance contracts

Investment life insurance contracts, loan relationships

Commentary – Tax Reporter ¶718-070

Investment policies

– see Investment life insurance contracts

Key man insurance policies, corporation tax

Case Law – Beauty Consultants Ltd v HM Inspector of Taxes (2002) Sp C 321 ; Greycon Ltd v Klaentschi (HMIT) (2003) Sp C 372

Key-person insurance

Commentary – Tax Reporter ¶217-650 ; Tax Reporter ¶221-300 ; Tax Reporter ¶708-460 ; Tax Reporter ¶708-860

HMRC Guidance – BIM45525 ; BIM45565 ; BIM46452

Case Law – Greycon Ltd v Klaentschi (HMIT)

Kidnap, ransom and extortion

Commentary – 4.2.4

Liability and indemnity insurance

Commentary – Tax Reporter ¶457-000–Tax Reporter ¶457-100

HMRC Guidance – EIM30519

Case Law – A Guarantor v. R & C Commrs

Life assurance relief

– see Life insurance premium relief

Life, medical etc. (overview)

Commentary – 4.2.1 6.9.2

Lifetime gifts, risk of death within seven years

Generally

Commentary – Tax Reporter ¶612-200

Valuation

– see Valuation

Loan finance

Commentary – Tax Reporter ¶215-100

HMRC Guidance – BIM45525 ; BIM45801

Loans to holders, deemed surrender

Legislation/Regulatory – ICTA88 s. 271

Loans to policy holders

Qualifying policies

Commentary – Tax Reporter ¶343-540

Locum and fixed practice expenses

Commentary – Tax Reporter ¶217-650 ; Tax Reporter ¶221-250 ; Tax Reporter ¶708-460 ; Essential Tax Companion ¶8450

HMRC Guidance – BIM45525 ; BIM45565 ; BIM46452

Losses

Legislation/Regulatory – FA2009 s. 69 ; ITA2007 s. 152(8)

Mortgage protection policies

Legislation/Regulatory – ICTA88 Sch. 15, para. 9

Non-resident companies

Generally

Legislation/Regulatory – ICTA88 Sch. 15, para. 23

Tax representatives

Legislation/Regulatory – FA2013 Sch. 9, para. 11 ; ICTA88 s. 552A, 552B ; SI 1999/881

Non-resident policyholders

Deceased policy holder

Commentary – Essential Tax Companion ¶8810

Time-apportionment relief

Commentary – Essential Tax Companion ¶8810

Non-residents

Legislation/Regulatory – ESC C33

Option for new policy on expiration of term and right to participation in profits, qualifying policy

Case Law – Monarch Assurance plc v Inland Revenue Commissioners. [2001] BTC 467

Pension schemes

Commentary – Tax Reporter ¶376-050

Personal accident insurance

Legislation/Regulatory – ICTA88 Sch. 15, para. 11

Personal portfolio bonds

– see also Personal portfolio bonds

Generally

Commentary – Essential Tax Companion ¶8815

Personal relief, reduction

Legislation/Regulatory – ICTA88 s. 270(1)

Pre-1 April 1976

Legislation/Regulatory – ICTA88 Sch. 15, para. 1(10), 2(4)

Premiums

Fee protection insurance

Legislation/Regulatory – IRInt. 247

Paid out of sums due under previous policies

Legislation/Regulatory – ICTA88 Sch. 15, para. 15

Presumed death of missing life insured, liability to tax on extra interest payment

Case Law – Pope & Ors v Revenue and Customs Commissioners. [2012] BTC 1,643

Purchase with annuity, inheritance tax

Commentary – Essential Tax Companion ¶16155

Qualifying conditions

Assignments

Legislation/Regulatory – FA2013 Sch. 9, para. 3 ; ICTA88 Sch. 15, para. B2

HMRC Guidance – INTM255250 ; IPTM1300 ; IPTM1320 ; IPTM2020 ; IPTM2050 ; IPTM2070 ; IPTM2071 ; IPTM2072 ; IPTM2073 ; IPTM2074 ; IPTM2076 ; IPTM2080 ; IPTM2081 ; IPTM2090 ; IPTM3520 ; IPTM3525 ; IPTM3730 ; IPTM7000 ; IPTM7310 ; IPTM7340 ; IPTM7515 ; IPTM8000 ; IPTM8065 ; IPTM8075 ; IPTM8080 ; IPTM8105 ; IPTM8120 ; IPTM8125 ; IPTM8130 ; IPTM8135 ; IPTM8140 ; IPTM8160 ; IPTM8165 ; IPTM8170 ; IPTM8180 ; IPTM8185 ; IPTM8195 ; IPTM8200 ; IPTM8205 ; IPTM8405 ; IPTM8410 ; IPTM8435

Rights to be beneficially owned by individuals only

Legislation/Regulatory – FA2013 Sch. 9, para. 3 ; ICTA88 Sch. 15, para. B1

Statements required

Legislation/Regulatory – FA2013 Sch. 9, para. 3 ; ICTA88 Sch. 15, para. B3

Qualifying policies

Additional premiums

Legislation/Regulatory – ICTA88 Sch. 15, para. 16

Capital sum payable on any event

Legislation/Regulatory – ICTA88 Sch. 15, para. 1(9)

Capital sum payable on death

Legislation/Regulatory – ICTA88 Sch. 15, para. 1(5)

Certification

Legislation/Regulatory – FA2006 s. 87 ; FA95 s. 55

Connected policies

Legislation/Regulatory – ICTA88 Sch. 15, para. 13

Definitions

Legislation/Regulatory – FA2013 Sch. 9, para. 2 ; ICTA88 Sch. 15, para. A6

Determination of beneficiaries

Legislation/Regulatory – FA2013 Sch. 9, para. 2 ; ICTA88 Sch. 15, para. A5

Disability

Legislation/Regulatory – ICTA88 Sch. 15, para. 1(7), 12

Endowment assurances

Legislation/Regulatory – ICTA88 Sch. 15, para. 2

Exception to make a statement

Legislation/Regulatory – SI 2013/1820 reg. 3

Exceptional mortality/disability risk

Legislation/Regulatory – ICTA88 Sch. 15, para. 12

Family income policies

Legislation/Regulatory – ICTA88 Sch. 15, para. 9

Friendly societies

Legislation/Regulatory – ICTA88 Sch. 15, para. 3-6

Generally

Legislation/Regulatory – ICTA88 s. 267, Sch. 15, para. 1 ; IRInt. 266

Industrial assurance business

Legislation/Regulatory – ICTA88 Sch. 15, para. 2(2)

Industrial assurance policies

Legislation/Regulatory – ICTA88 Sch. 15, para. 7

Mortgage protection policies

Legislation/Regulatory – ICTA88 Sch. 15, para. 9

Non-resident companies

Legislation/Regulatory – FA95 s. 55 ; ICTA88 Sch. 15, para. 24

Non-resident policies

Legislation/Regulatory – FA2013 Sch. 9, para. 5 ; ICTA88 Sch. 15, para. 25

Personal accident insurance

Legislation/Regulatory – ICTA88 Sch. 15, para. 11

Pre-1 April 1976

Legislation/Regulatory – ICTA88 Sch. 15, para. 1(10)

Premium limit

Legislation/Regulatory – FA2013 Sch. 9, para. 2 ; ICTA88 Sch. 15, para. A1, A3

Premiums paid out of sums due under previous policies

Legislation/Regulatory – ICTA88 Sch. 15, para. 15

Premiums, term policy exceeding ten years

Legislation/Regulatory – ICTA88 Sch. 15, para. 1(3)

Protected policies

Legislation/Regulatory – FA2013 Sch. 9, para. 2 ; ICTA88 Sch. 15, para. A4

Registered friendly societies

Legislation/Regulatory – ICTA88 Sch. 15, para. 3

Regulations

Legislation/Regulatory – FA2013 Sch. 9, para. 10 ; ICTA88 s. 552ZB

Reporting requirement

Legislation/Regulatory – SI 2013/1820 reg. 5

Restrictions on relief

Legislation/Regulatory – FA2013 Sch. 9, para. 2, 8 ; ICTA88 Sch. 15, para. A2 ; ITTOIA2005 s. 463A-463E

Short-term assurances

Legislation/Regulatory – ICTA88 Sch. 15, para. 10

Statement by beneficiary

Legislation/Regulatory – SI 2013/1820 reg. 2-4

Statutory conditions

Legislation/Regulatory – ESC A41

Substitutions and variations

Legislation/Regulatory – FA2006 s. 87 ; FA2013 Sch. 9, para. 4 ; ICTA88 Sch. 15, para. 17-20

Surrender, term policy not exceeding ten years

Legislation/Regulatory – ICTA88 Sch. 15, para. 1(4)

Term assurance

Legislation/Regulatory – ICTA88 Sch. 15, para. 1

Variations and substitutions

Legislation/Regulatory – FA2006 s. 87 ; ICTA88 Sch. 15, para. 17-20

Whole life

Legislation/Regulatory – ICTA88 Sch. 15, para. 1

Rebated or reinvested commission

Legislation/Regulatory – FA2007 s. 29(4) ; ITTOIA2005 s. 541A, 541B

Receipts of commission

Legislation/Regulatory – SP 4/97

Records, insurer's duty to keep

Legislation/Regulatory – SI 1997/265

Recovery by assessment of sums not paid

Legislation/Regulatory – ICTA88 s. 272(3)

Reinstatement after non-payment of premium

Legislation/Regulatory – ICTA88 Sch. 15, para. 20ZA

Reinvested or rebated commission

Legislation/Regulatory – FA2007 s. 29(4) ; ITTOIA2005 s. 541A, 541B

Relevant premiums

Legislation/Regulatory – ICTA88 s. 270(2)

Relief for premiums

– see Life insurance premium relief

Relief, reduction for earlier years of assessment

Legislation/Regulatory – ICTA88 s. 270(3)

Returns

Legislation/Regulatory – FA2013 Sch. 9, para. 12 ; ICTA88 s. 272(1) ; TMA70 s. 98

HMRC Guidance – CG66918 ; CG66918A ; CG66919 ; CG66919A ; CG66920 ; CG66920A ; CG66924 ; CG66925 ; CG67064 ; CH81060 ; CH84960 ; CH900000 ; CISR16270 ; CISR65050 ; CITM6150 ; COG914035 ; COG914080 ; COG914240 ; COG914275 ; COG914285 ; COG915068 ; CTM21210 ; CTM35215 ; CTM35270 ; CTM81280 ; CTM90140 ; DMBM560900 ; EM4504 ; EM4506 ; EM4508 ; EM4551 ; EM4616 ; EM4901 ; EM4902 ; EM4910 ; EM4915 ; EM5183 ; EM5201 ; EM8051 ; EM8052 ; EM8321 ; ESM2043 ; ESM2190 ; INTM700200 ; INTM701000 ; IPTM4380 ; IPTM7245 ; IPTM9120 ; PAYE82002 ; TSEM3482 ; TSEM3484 ; TTM17541 ; TTM17721 ; VCM14210 ; VCM15030 ; VCM15170 ; VCM35210 ; VCM36040 ; VCM36170 ; VCM51090 ; VCM55430 ; VCM58020 ; VCM58100

Rights of insured

Commentary – Tax Reporter ¶781-655

Rights of insurer

Commentary – Tax Reporter ¶781-630

Rights under

Commentary – Tax Reporter ¶514-750

Short-term assurances

Legislation/Regulatory – ICTA88 Sch. 15, para. 10

Sickness benefits etc. paid under, exemption from tax

Commentary – Tax Reporter ¶133-150

Statutory conditions

Legislation/Regulatory – ESC A41

Substitutions and variations

Legislation/Regulatory – ICTA88 Sch. 15, para. 17-20

Sums recovered under, trading receipts

Legislation/Regulatory – CTA2009 s. 103, Sch. 2, para. 25 ; ITTOIA2005 s. 106

HMRC Guidance – BIM45525 ; GIM8310

Surrender

After four years

Legislation/Regulatory – ICTA88 s. 269, 270

Capital sum, determination

Legislation/Regulatory – ICTA88 Sch. 15, para. 1(5), (6)

Collection of sums

Legislation/Regulatory – ICTA88 s. 272

Deemed in cases of certain loans

Legislation/Regulatory – ICTA88 s. 271

Generally

Legislation/Regulatory – ICTA88 s. 268, 270

Term exceeding ten years

Legislation/Regulatory – ICTA88 Sch. 15, para. 1(3)

Term policy not exceeding ten years

Legislation/Regulatory – ICTA88 Sch. 15, para. 1(4)

Within four years

Legislation/Regulatory – ICTA88 s. 268

Surrender of second-hand policies, tax avoidance

Deficiency relief

Case Law – Mayes v Revenue and Customs Commissioners. [2009] BTC 617 ; Revenue and Customs Commissioners v Mayes. [2011] BTC 261

Exclusion of proceeds from disposal consideration

Case Law – Drummond v Revenue and Customs Commissioners. [2009] BTC 312

Generally

Case Law – Drummond v Revenue and Customs Commissioners. [2008] BTC 473 ; Drummond v. R & C Commrs (2007) Sp C 617 ; Revenue and Customs Commissioners v Collins. [2009] BTC 91

Swedish premium tax incompatible with EC Treaty

Case Law – Safir v. Skattemyndigheten i Dalarnas Län (Case C-118/96). [1998] BTC 8,028

Tax avoidance scheme, discovery assessments

Case Law – Revenue and Customs Commissioners v Charlton & Ors. [2013] BTC 1,634

Trading receipt

Commentary – Essential Tax Companion ¶21070

Trading receipts

Key-man policies

Commentary – Tax Reporter ¶221-300 ; Tax Reporter ¶708-860

Case Law – Greycon Ltd v Klaentschi (HMIT)

Locum or fixed practice expenses

Commentary – Tax Reporter ¶221-250

HMRC Guidance – BIM45565

Loss or expenses

Commentary – Tax Reporter ¶221-200 ; Tax Reporter ¶708-840

Trusts

Commentary – SDLT Reporter ¶120-245

Valuation for inheritance tax

Commentary – Essential Tax Companion ¶16370

Variation

Legislation/Regulatory – ICTA88 Sch. 15, para. 17-20

Whole life policy

Legislation/Regulatory – ICTA88 Sch. 15, para. 1(2)

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