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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 for the benefit of someone else from the start: introduction

Where a policy is effected for the benefit of someone else from the start, the effecting of the policy is a transfer of value (IHTM04024).

The claim is on the first premium and, if the deceased paid any further premiums on the policy, a claim also arises in respect of each one.

There are procedural instructions at IHTM20044.

If the policy contains an option to surrender bonuses to the transferor before the policy matures, the guidance at IHTM20252applies.