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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Life Policies: Contents

Introduction to life policies
  1. IHTM20011
    Introduction to life policies: What is a life policy?
  2. IHTM20012
    Introduction to life policies: Life policies and Inheritance Tax
Investigating Form IHT410
  1. IHTM20021
    Investigating Form IHT410: Introduction to form IHT410
  2. IHTM20022
    Investigating Form IHT410: If the answer to Question 1 is Yes
  3. IHTM20023
    Investigating Form IHT410: If the answer to Question 3 is Yes
  4. IHTM20024
    Investigating Form IHT410: If the answer to Question 4 is Yes
  5. IHTM20025
    Investigating Form IHT410: If the answer to Question 7 is Yes
  6. IHTM20026
    Investigating Form IHT410: If the answer to Question 10 is Yes
  7. IHTM20027
    Investigating Form IHT410: Procedure if the answer to Question 10 is Yes
  8. IHTM20028
    Investigating Form IHT410: If the answer to Question 12 is Yes
  9. IHTM20029
    Investigating Form IHT410: If the answer to Question 14 is Yes
Investigating Form IHT403
  1. IHTM20041
    Investigating Form IHT403: Introduction
  2. IHTM20042
    Investigating Form IHT403: Gift of an existing life policy
  3. IHTM20043
    Investigating Form IHT403: Procedure for a gift of an existing life policy
  4. IHTM20044
    Investigating Form IHT403: Payment of premiums on a life policy for the benefit of someone else
  5. IHTM20045
    Investigating Form IHT403: Payment of premiums on a life policy for the benefit of someone else - procedure
  6. IHTM20046
    Investigating Form IHT403: Assignment of the right to a lump sum due under an annuity contract
Particular situations to look out for
  1. IHTM20061
    Particular situations to look out for: Foundation Insurance (Capital Redemptions) Ltd
  2. IHTM20062
    Particular situations to look out for: Midland Life (or HSBC) Cluster Trusts
Definitions
  1. IHTM20081
    Definitions: 'Assured' and 'life assured'
  2. IHTM20082
    Definitions: 'Premium'
  3. IHTM20083
    Definitions: 'Surrender value' and 'open market value'
  4. IHTM20084
    Definitions: 'Claim value'
  5. IHTM20085
    Definitions: 'Insurable interest'
  6. IHTM20086
    Definitions: 'Sum assured'
  7. IHTM20087
    Definitions: 'Back-to-back' policies
  8. IHTM20088
    Definitions: 'Mortgage protection policies' and 'mortgage indemnity guarantees'
Types of policy
  1. IHTM20101
    Types of policy: Whole life policy
  2. IHTM20102
    Types of policy: Term, term assurance or temporary policy
  3. IHTM20103
    Types of policy: Pure endowment policy
  4. IHTM20104
    Types of policy: Endowment policy or endowment assurance
  5. IHTM20105
    Types of policy: With-profits policy
  6. IHTM20106
    Types of policy: Unit-linked policy
  7. IHTM20107
    Types of policy: Alternative benefits policy
Trusts of life policies
  1. IHTM20141
    Trusts of life policies: Introduction
Trusts of life policies: Policy settled on its own trusts
  1. IHTM20151
    Trusts of life policies: Policy settled on its own trusts: Express life interest in favour of settlor
  2. IHTM20152
    Trusts of life policies: Policy settled on its own trusts: Conditions required for policy to be comprised in a settlement
  3. IHTM20153
    Trusts of life policies: Policy settled on its own trusts: Life interest in favour of a beneficiary other than the settlor
  4. IHTM20154
    Trusts of life policies: Policy settled on its own trusts: Examples - England, Wales and Northern Ireland
  5. IHTM20155
    Trusts of life policies: Policy settled on its own trusts: Examples - Scotland
Trusts of life policies: Policy settled on other trusts
  1. IHTM20160
    Trusts of life policies: Policy settled on other trusts
Trusts of life policies: General power over policy proceeds
  1. IHTM20170
    Trusts of life policies: General power over policy proceeds
Trusts of life policies: Married Women's Property Act policies
  1. IHTM20181
    Trusts of life policies: Married Women's Property Act policies: Introduction
  2. IHTM20182
    Trusts of life policies: Married Women's Property Act policies: Proper law
  3. IHTM20183
    Trusts of life policies: Married Women's Property Act policies: The rule in Phipps v Ackers
  4. IHTM20184
    Trusts of life policies: Married Women's Property Act policies: Trustees' remuneration
  5. IHTM20185
    Trusts of life policies: Married Women's Property Act policies: No trustee appointed
Policies on the deceased's life not connected with any other transaction (except a trust)
  1. IHTM20201
    Policies on the deceased's life not connected with any other transaction (except a trust): Introduction
  2. IHTM20202
    Policies on the deceased's life not connected with any other transaction (except a trust): Contracts of life insurance in existence prior to 22 March 2006
Policies on the deceased's life not connected with any other transaction (except a trust): Policy unconnected with a gift or trust
  1. IHTM20211
    Policies on the deceased's life not connected with any other transaction (except a trust): Policy unconnected with a gift or trust: Introduction
  2. IHTM20212
    Policies on the deceased's life not connected with any other transaction (except a trust): Policy unconnected with a gift or trust: Possible discount
  3. IHTM20213
    Policies on the deceased's life not connected with any other transaction (except a trust): Policy unconnected with a gift or trust: Policies with Independent Order of Foresters, Homeowners Friendly Society, Family Assurance Friendly Society and simil
Policies on the deceased's life not connected with any other transaction (except a trust): Policy effected by the deceased for their own benefit but gifted later
  1. IHTM20221
    Policies on the deceased's life not connected with any other transaction (except a trust): Policy effected by the deceased for their own benefit but gifted later: Introduction
  2. IHTM20231
    Policies on the deceased's life not connected with any other transaction (except a trust): Policy effected by the deceased for their own benefit but gifted later: Value of policy - general rule
  3. IHTM20241
    Policies on the deceased's life not connected with any other transaction (except a trust): Policy effected by the deceased for their own benefit but gifted later: Value of policy - special rule - introduction
  4. IHTM20242
    Policies on the deceased's life not connected with any other transaction (except a trust): Policy effected by the deceased for their own benefit but gifted later: Value of policy - special rule - exclusions from special rule
  5. IHTM20243
    Policies on the deceased's life not connected with any other transaction (except a trust): Policy effected by the deceased for their own benefit but gifted later: Value of policy - special rule - term assurance policies excluded from special rule
  6. IHTM20244
    Policies on the deceased's life not connected with any other transaction (except a trust): Policy effected by the deceased for their own benefit but gifted later: Value of policy - special rule - modification of special rule for unit-linked policies
Policies on the deceased's life not connected with any other transaction (except a trust): Policy effected for the benefit of someone else from the start
  1. IHTM20251
    Policies on the deceased's life not connected with any other transaction (except a trust): Policy effected for the benefit of someone else from the start: Introduction
  2. IHTM20252
    Policies on the deceased's life not connected with any other transaction (except a trust): Policy effected for the benefit of someone else from the start: Policy contains option to surrender bonuses to the transferor
Joint life and joint name policies
  1. IHTM20300
    Joint life and joint name policies: Policies in joint names
  2. IHTM20301
    Joint life and joint name policies: Introduction
  3. IHTM20302
    Joint life and joint name policies: Ascertaining the beneficial interests
  4. IHTM20303
    Joint life and joint name policies: The situations that can arise and the Inheritance Tax claims that can result
  5. IHTM20304
    Joint life and joint name policies: Joint mortgage protection policies
Potentially Exempt Transfer treatment for renewal premiums
  1. IHTM20331
    Potentially Exempt Transfer treatment for renewal premiums: Payment of premiums for policies in accumulation and maintenance or trusts for disabled persons
  2. IHTM20332
    Potentially Exempt Transfer treatment for renewal premiums: Payment of premiums for policies gifted to individuals
Policies based on the life of another not connected with any other transaction (except a trust)
  1. IHTM20351
    Policies based on the life of another not connected with any other transaction (except a trust): Introduction
  2. IHTM20352
    Policies based on the life of another not connected with any other transaction (except a trust): Procedure
Life policy linked with an annuity
  1. IHTM20371
    Life policy linked with an annuity: Introduction and background
  2. IHTM20372
    Life policy linked with an annuity: What to do first
  3. IHTM20373
    Life policy linked with an annuity: What to do when the Actuarial Team's advice is received
  4. IHTM20374
    Life policy linked with an annuity: The current statutory position
  5. IHTM20375
    Life policy linked with an annuity: The Associated Operations test
  6. IHTM20376
    Life policy linked with an annuity: Annuity and policy issued by different companies
  7. IHTM20377
    Life policy linked with an annuity: Deferred annuity contract
Pure Endowment policy linked with a Term Assurance policy
  1. IHTM20401
    Pure Endowment policy linked with a Term Assurance policy: Introduction
  2. IHTM20402
    Pure Endowment policy linked with a Term Assurance policy: Differences between PETA and Discounted Gift schemes
  3. IHTM20410
    Pure Endowment policy linked with a Term Assurance policy: PETA schemes
Pure Endowment policy linked with a Term Assurance policy: Discounted Gift Schemes
  1. IHTM20421
    Pure Endowment policy linked with a Term Assurance policy: Discounted Gift Schemes: Introduction
  2. IHTM20422
    Pure Endowment policy linked with a Term Assurance policy: Discounted Gift Schemes: What to do
  3. IHTM20423
    Pure Endowment policy linked with a Term Assurance policy: Discounted Gift Schemes: List of Companies and Scheme names
  4. IHTM20424
    Pure Endowment policy linked with a Term Assurance policy: Discounted Gift Schemes: Basic scheme
  5. IHTM20425
    Pure Endowment policy linked with a Term Assurance policy: Discounted Gift Schemes: Quantifying the Inheritance Tax claim
  6. IHTM20426
    Pure Endowment policy linked with a Term Assurance policy: Discounted Gift Schemes: Factors affecting the open market value of the retained rights
  7. IHTM20427
    Pure Endowment policy linked with a Term Assurance policy: Discounted Gift Schemes: Where the transferor’s life was uninsurable at the transfer date
Pure Endowment policy linked with a Term Assurance policy: Capital Conversion or Flexible Funding plans
  1. IHTM20450
    Pure Endowment policy linked with a Term Assurance policy: Capital Conversion or Flexible Funding plans
Life Policy linked with a loan and Inheritance Trusts
  1. IHTM20501
    Life Policy linked with a loan and Inheritance Trusts: Introduction
  2. IHTM20502
    Life Policy linked with a loan and Inheritance Trusts: What to do
  3. IHTM20503
    Life Policy linked with a loan and Inheritance Trusts: Procedure
Life Policy linked with a loan and Inheritance Trusts: Original scheme
  1. IHTM20511
    Life Policy linked with a loan and Inheritance Trusts: Original scheme: How the original scheme typically worked
  2. IHTM20512
    Life Policy linked with a loan and Inheritance Trusts: Original scheme: Legislation designed to counteract scheme
  3. IHTM20513
    Life Policy linked with a loan and Inheritance Trusts: Original scheme: Revised scheme following legislative changes
Life Policy linked with a loan and Inheritance Trusts: Reverse Loan scheme
  1. IHTM20521
    Life Policy linked with a loan and Inheritance Trusts: Reverse Loan scheme: How the reverse loan scheme typically worked
  2. IHTM20522
    Life Policy linked with a loan and Inheritance Trusts: Reverse Loan scheme: Legislation designed to counteract reverse loan scheme
Policies with Countrywide (formerly Premium Life) Assurance Company
  1. IHTM20601
    Policies with Countrywide (formerly Premium Life) Assurance Company: Introduction
  2. IHTM20602
    Policies with Countrywide (formerly Premium Life) Assurance Company: What action to take
  3. IHTM20603
    Policies with Countrywide (formerly Premium Life) Assurance Company: How to identify the two schemes
Policies with Canadian insurance companies
  1. IHTM20611
    Policies with Canadian insurance companies: Introduction
  2. IHTM20612
    Policies with Canadian insurance companies: The companies concerned
  3. IHTM20613
    Policies with Canadian insurance companies: Governing law
Annuities payable to deceased/transferor by insurance companies
  1. IHTM20631
    Annuities payable to deceased/transferor by insurance companies: Introduction
  2. IHTM20632
    Annuities payable to deceased/transferor by insurance companies: Purchased life annuities - types and potential claims
  3. IHTM20633
    Annuities payable to deceased/transferor by insurance companies: Annuities ceasing on the death
  4. IHTM20634
    Annuities payable to deceased/transferor by insurance companies: Annuities which continue after the death
  5. IHTM20635
    Annuities payable to deceased/transferor by insurance companies: Annuities purchased in joint names
Technical note on discounted gift schemes issued on 1 May 2007
  1. IHTM20650
    Technical note on discounted gift schemes issued on 1 May 2007: Introduction
  2. IHTM20651
    Technical note on discounted gift schemes issued on 1 May 2007: Background
  3. IHTM20652
    Technical note on discounted gift schemes issued on 1 May 2007: Inheritance Tax treatment
  4. IHTM20653
    Technical note on discounted gift schemes issued on 1 May 2007: Valuation issues
  5. IHTM20654
    Technical note on discounted gift schemes issued on 1 May 2007: Position where there are joint settlors
  6. IHTM20655
    Technical note on discounted gift schemes issued on 1 May 2007: Underwriting approach
  7. IHTM20656
    Technical note on discounted gift schemes issued on 1 May 2007: HMRC's current basis of valuation