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HMRC internal manual

Insurance Policyholder Taxation Manual

Maturity: chargeable event even if rollover option in policy is exercised

The maturity of a life insurance or capital redemption policy is now always achargeable event, except of time-served qualifying policies in the circumstances describedin IPTM7310. This is the case even if the policy contains anoption under which all the maturity proceeds may be re-invested in a new policy with thesame insurer.

There used to be a provision in the legislation whereby when such an option was exercised,the maturity was not a chargeable event. However, this provision was repealed in FA2003with effect for maturity options exercised on or after 9 April 2003.

Further reference and feedback IPTM1013