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HMRC internal manual

Capital Gains Manual

Exemptions: life assurance and deferred annuities



  • a policy of assurance, or
  • a contract for deferred annuity,

which is on the life of any person is disposed of there is no chargeable gain in the following circumstances:

For disposals on or after 9 April 2003 (see CG69050), if neither the policy or contract, nor any interest in it, has at any time been acquired for ‘actual consideration’ (as defined in CG69051)

For disposals before 9 April 2003 (see CG69055), if the disposal is made either

  • by the original beneficial owner, or
  • by a person who acquired the policy or contract other than for consideration in money or money’s worth.