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HMRC internal manual

Insurance Policyholder Taxation Manual

Permitted property: cash: definition

In general, cash is property that may be selected without the policy becoming a PPB.However, if under the terms of the policy cash may be selected for speculative purposes,that is wholly or partly for the purpose of realising a gain from its disposal, then thepolicy will be a PPB.

Meaning of cash

Cash is widely defined and includes cash held in a deposit account or share accountwith a building society or in a bank account or similar account. This includes depositswith foreign institutions.

Cash does not include ‘near-cash’ or ‘cash-like’ assets such as goldand silver bullion, any type of related security or equity, gilts, permanent interestbearing shares issued by a building society and quoted Eurobonds.

Loan notes

Cash also does not include loan notes, such as medium-term loan notes. These do notfall within any of the permitted categories of property and interests in a loan note maynot be selected without making the policy a PPB, even if the return on the loan note islinked to a permitted index.

Further reference and feedback IPTM1013