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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Life Policies: policy 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: special rule: exclusions from special rule

The rule set out at IHTM20241 does not apply

  • if the transfer is on death (except where the death was before 11 April 1978)
  • if the transfer of value does not result in the policy or contract ceasing to be part of the transferor’s estate (except where the transfer was before 11 April 1978)
  • to most term assurance policies - see IHTM20243.