Consultation outcome

Part surrenders and part assignments of life insurance policies

• From: HM Revenue & Customs
• Published: 20 April 2016
• Last updated: 5 December 2016 — See all updates

This consultation has concluded

Download the full outcome

Part surrenders and part assignments of life insurance policies - summary of responses

PDF, 328 KB, 16 pages

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Detail of outcome

In certain unusual circumstances life insurance policyholders can inadvertently generate taxable gains, when making a part surrender or part assignment of their policy, which are wholly disproportionate to the policy’s underlying economic gain.

At Budget 2016 the government announced its intention to introduce legislation in Finance Bill 2017 changing the current tax rules. A public consultation on possible alternatives ran from 20 April 2016 to 13 July 2016.

Following this consultation draft legislation has been published, together with this summary of consultation responses, to allow policyholders to apply to HM Revenue and Customs (HMRC) to have disproportionate gains recalculated on a just and reasonable basis.

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Original consultation

Summary

A consultation on possible alternatives to the current tax rules for part surrenders and part assignments of life insurance policies.

This consultation ran from
5pm on 20 April 2016 to 11:45pm on 13 July 2016

Consultation description

As announced at Budget 2016, the government will change the current rules for part surrenders and part assignments of life insurance policies to prevent excessive tax charges arising on these products.

This consultation invites views on possible alternatives and sets out, in detail, three options for change.

Documents

Part surrenders and part assignments of life insurance policies

PDF, 226 KB, 29 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Published 20 April 2016
Last updated 5 December 2016 + show all updates

1. 5 December 2016

   Summary of responses published.

2. 20 April 2016

   First published.