Capital items that are income for tax purposes: UK life assurance gain trust office receives a chargeable event certificate
The chargeable event certificate should show the policy holders are the trustees.
If not a company, the gain is usually chargeable on the settlor. However the gain is chargeable on the trustee if either of the following apply:
- the individual who created the trust is not resident in the UK at the time of the chargeable event
- the individual who created the trust is dead at the time of the chargeable event
If the gain is chargeable on the settlor send the certificate, with a covering note, to the settlor’s tax office.
If it is chargeable on the trustees, refer to TSEM3210.