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21 August 2012
To reflect insurance policyholder’s period of residence outside UK
The government is considering a reformation of rules within the chargeable event gain regime that are designed to reflect an insurance policyholder’s period of residence outside the UK.
Changes would be made through legislation to be introduced as part of Finance Bill 2013.
The proposed reforms are intended to:
- provide a greater alignment between the treatment of policies issued by insurers inside and outside the UK;
- ensure the rules on time apportionment relief provide a more appropriate reduction to gains; and
- ensure the rules operate effectively in conjunction with the new statutory definition of residence, currently the subject of a separate consultation, and the changes to the basic calculation of chargeable event gains included in the Finance Act 2012.
A consultation document sets out issues for consideration and invites comment on the scope and extent of the reform, which should be sent by email no later than 5 November.
