Lack of medical evidence

In 1996 a husband and wife took out three life assurance policies coupled with three annuities with Equitable Life. They also executed three trust declarations over any 'with profits endowment assurance' to be made under the proposals with their children as beneficiaries.

The wife died in 2002 and the husband in 2003.

HMRC issued notices of determination that the issue of life assurance policies at the same time as the annuities and the vesting of those policies under the trust declarations was a transfer of value under IHTA 1984 s 263.

The appellant the beneficiaries and executor appealed saying that the purchase of the annuities and the making of the life assurance policies were not associated operations by virtue of HMRC Statement of Practice E4.

The Special Commissioner decided that the purchase of the annuity and the making of the life assurance policy were associated...