Posted by Nick Turpin on 20 Aug 2012
Consultation Over the Tax Treatment of Life Insurance Policies
Under present UK tax rules it is possible for holders of life insurance policies issued by foreign insurers to claim a time-apportioned reduction in the level of the taxable gains to take into account periods when they were not UK tax resident during the life of the policy. This apportionment is not currently available to holders of policies issued by UK insurers.
HM Revenue & Customs (HMRC) have announced a consultation into extending the time-apportionment reduction to UK policy holders.
The consultation will run for 12 weeks from 13 August to 5 November 2012, with HMRC inviting views from the life insurance industry and from other interested parties. In due course any views will be carefully assessed when preparing the necessary legislation which will then be published for further consultation.
HMRC’s review into this matter is welcome is it should hopefully remove the current discrimination between foreign and UK policies.
If you would like any advice regarding the above article or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or firstname.lastname@example.org
- Property Partnership Incorporation and SDLT
- Non-Resident Landlords – UK Tax Update
- Non-Resident CGT – April 2019 Changes
- Overseas Pension Changes 6 April 2017
- Top 10 Expat Tax Tips for Individuals Moving to the UK