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HMRC internal manual

Insurance Policyholder Taxation Manual

Calculating gains: death, maturity or full surrender: disregard of trivial inducement benefits

A benefit other than a payment of money is ignored as a benefit if

  • it is provided by the insurer as an inducement to buy a policy or contract, or to enter into a later transaction related to a policy or contract, and
  • the total cost to the insurer of providing the benefit and any other such benefits at any time in connection with the policy or contract, or any contract linked with it, does not exceed £30.

One policy or contract is linked with another if their terms are substantially identical and the making of one is in contemplation when making the other.

Further reference and feedback IPTM1013