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HMRC internal manual

Insurance Policyholder Taxation Manual

From
HM Revenue & Customs
Updated
, see all updates

Statements required from beneficiaries under a policy

ICTA88/SCH15/PARAB3

A statement is required where:

  • a policy is issued on or after 6 April 2013,
  • a policy is varied on or after 6 April 2013 and the premium period is lengthened or the premiums payable are increased,
  • a policy issued before 21 March 2012 is varied on or after 6 April 2013 such that the premium period is lengthened or shortened or the premiums payable are increased or decreased,
  • a qualifying policy is assigned to someone else on or after 6 April 2013 and the assignment is an excluded one,
  • upon inheritance following the death of a beneficiary under a policy on or after 6 April 2013.

A statement is not required in the following circumstances:

  • on the issue of a policy where the statement information has already been provided to the issuer and that information has not changed in the interim,
  • on assignment of a share in rights under a policy an existing beneficiary has previously made a statement for that policy and the information has not since changed,
  • following a deceased beneficiary event if before the event the beneficiary under the policy was already a beneficiary under that policy,
  • on assignment which is for security on a debt or on discharge of a debt,
  • on assignment as part of legally enforceable obligation relating to a divorce or dissolution of a civil partnership and the policy is to pay off an interest only mortgage,
  • on assignment to the personal representatives of a deceased individual.

A statement is only required following the first variation that makes a policy a RRQP. A statement is not required following any further variations that would otherwise require a statement. For example, if a protected policy is varied after 5 April 2013 such that premiums increase to £4,000 then a statement is required and the policy becomes RRQP from the date of change. If the policy is then varied again so that premiums increase to £5,000 then no further statement is required upon this second variation.