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Correspondence from readers.
POAT & insurance
I refer to the article by John Woolley entitled 'Still Uncertain' in the issue dated 19 May 2005.
I have queried the subject of pre-18 March 1986 regular premium policies with HMRC's Capital Taxes Technical Group. HMRC confirm that such a policy (commencing before 18 March 1986 but with premiums continuing subsequently) in a trust of which the settlor is a potential beneficiary is indeed within the pre-owned assets tax régime.
HMRC have stated in a letter dated 18 May 2005:
Correspondence from readers.
POAT & insurance
I refer to the article by John Woolley entitled 'Still Uncertain' in the issue dated 19 May 2005.
I have queried the subject of pre-18 March 1986 regular premium policies with HMRC's Capital Taxes Technical Group. HMRC confirm that such a policy (commencing before 18 March 1986 but with premiums continuing subsequently) in a trust of which the settlor is a potential beneficiary is indeed within the pre-owned assets tax régime.
HMRC have stated in a letter dated 18 May 2005:
'While the policy may be subject to the income tax charge as stated in my letter of 18 April it may not necessarily be the whole value of the policy. Only the proportion of the value of the policy which is attributable to post-18 March 1986 premiums will be subject to the income tax charge although that presumably will increase year...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
