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HMRC internal manual

Insurance Policyholder Taxation Manual

From
HM Revenue & Customs
Updated
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Death events

Death is a chargeable event if it gives rise to benefits

The death of an individual who is insured under a life insurance policy is a chargeable event if it gives rise to benefits under the policy. Where the death does not give rise to benefits then it is not a chargeable event. This might happen for instance where a policy insures two or more individuals but only pays benefits on the final death, a ‘last to die’ policy.

Where a capital sum is paid on death under a life annuity contract made on or after 10 December 1974 that is also a chargeable event. By definition, no death events will arise on capital redemption policies.