Readers’ forum: The game is bond

A UK resident owned a non-qualifying life assurance policy when he died. The policy an investment bond was in his sole name and his was the only remaining life assured. A chargeable event gain arose calculated by reference to the surrender value immediately before death and assessable on the deceased in the period to death. The value of the plan on death being a different figure from the former value was also provided by the assurer and used for inheritance tax and probate purposes.

Under the policy terms the claim value payable to the executors was quantified when the assurer was notified of the death. In effect the “investment” was still in the market post death and the claim value exceeded the probate value. Do readers consider that the gain on the probate value realised by the executors is exempt from capital gains tax under...