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Contents

Official guidance
Inheritance Tax Manual

IHTM20000 · Life Policies

  • IHTM20011 · Introduction to life policies: what is a life policy?
  • IHTM20012 · Introduction to life policies: life policies and Inheritance Tax
  • IHTM20021 · Investigating form IHT410: introduction to form IHT410
  • IHTM20022 · Investigating form IHT410: if the answer to Question 1 is Yes
  • IHTM20023 · Investigating form IHT410: if the answer to Question 3 is Yes
  • IHTM20024 · Investigating form IHT410: if the answer to Question 4 is Yes
  • IHTM20025 · Investigating form IHT410: if the answer to Question 7 is Yes
  • IHTM20026 · Investigating form IHT410: if the answer to Question 10 is yes
  • IHTM20027 · Investigating form IHT410: procedure if the answer to Question 10 is Yes
  • IHTM20028 · Investigating form IHT410: if the answer to Question 12 is Yes
  • IHTM20029 · Investigating form IHT410: if the answer to Question 14 is Yes
  • IHTM20041 · Investigating form IHT403: introduction
  • IHTM20042 · Investigating form IHT403: gift of an existing life policy
  • IHTM20043 · Investigating form IHT403: procedure for a gift of an existing life policy
  • IHTM20044 · Investigating form IHT403: payment of premiums on a life policy for the benefit of someone else
  • IHTM20045 · Investigating form IHT403: payment of premiums on a life policy for the benefit of someone else - procedure
  • IHTM20046 · Investigating form IHT403: assignment of the right to a lump sum due under an annuity contract
  • IHTM20061 · Particular situations to look out for: Foundation Insurance (Capital Redemptions) Ltd
  • IHTM20062 · Particular situations to look out for: Midland Life (or HSBC) Cluster Trusts
  • IHTM20081 · Definitions: 'assured' and 'life assured'
  • IHTM20082 · Definitions: 'premium'
  • IHTM20083 · Definitions: 'surrender value' and 'open market value'
  • IHTM20084 · Definitions: 'claim value'
  • IHTM20085 · Definitions: 'insurable interest'
  • IHTM20086 · Definitions: 'sum assured'
  • IHTM20087 · Definitions: 'back-to-back policies'
  • IHTM20088 · Definitions: 'mortgage protection policies' and 'mortgage indemnity guarantees'
  • IHTM20101 · Types of policy: whole life policy
  • IHTM20102 · Types of policy: term, term assurance or temporary policy
  • IHTM20103 · Types of policy: pure endowment policy
  • IHTM20104 · Types of policy: endowment policy or endowment assurance
  • IHTM20105 · Types of policy: with-profits policy
  • IHTM20106 · Types of policy: unit-linked policy
  • IHTM20107 · Types of policy: alternative benefits policy
  • IHTM20141 · Trusts of life policies: introduction
  • IHTM20151 · Trusts of life policies: policy settled on its own trusts: express life interest in favour of settlor
  • IHTM20152 · Trusts of life policies: policy settled on its own trusts: conditions required for policy to be comprised in a settlement
  • IHTM20153 · Trusts of life policies: policy settled on its own trusts: life interest in favour of a beneficiary other than the settlor
  • IHTM20154 · Trusts of life policies: policy settled on its own trusts: examples (England, Wales and Northern Ireland)
  • IHTM20155 · Trusts of life policies: policy settled on its own trusts: examples (Scotland)
  • IHTM20160 · Trusts of life policies: policy settled on other trusts
  • IHTM20170 · Trusts of life policies: general power over the policy proceeds
  • IHTM20181 · Married Women’s Property Act policies: introduction
  • IHTM20182 · Married Women’s Property Act policies: proper law
  • IHTM20183 · Married Women’s Property Act policies: the rule in Phipps v Ackers
  • IHTM20184 · Married Women’s Property Act policies: trustee’s remuneration
  • IHTM20185 · Married Women’s Property Act policies: no trustee appointed
  • IHTM20201 · Policy on the deceased’s life not connected with any other transaction (except a trust): introduction
  • IHTM20202 · Policy on the deceased’s life not connected with any other transaction (except a trust): contracts of life insurance in existence prior to 22 March 2006
  • IHTM20211 · Policy on the deceased’s life not connected with any other transaction (except a trust): policy unconnected with a gift or trust: introduction
  • IHTM20212 · Policy on the deceased’s life not connected with any other transaction (except a trust): policy unconnected with a gift or trust: possible discount
  • IHTM20213 · Policy on the deceased’s life not connected with any other transaction (except a trust): policy unconnected with a gift or trust:
  • IHTM20221 · Policy on the deceased’s life not connected with any other transaction (except a trust): policy effected by the deceased for their own benefit but gifted later: introduction
  • IHTM20231 · Policy on the deceased’s life not connected with any other transaction (except a trust): policy effected by the deceased for their own benefit but gifted later: value of policy: general rule
  • IHTM20241 · Policy on the deceased’s life not connected with any other transaction (except a trust): policy effected by the deceased for their own benefit but gifted later: special rule: introduction
  • IHTM20242 · Policy on the deceased’s life not connected with any other transaction (except a trust): policy effected by the deceased for their own benefit but gifted later: special rule: exclusions from special rule
  • IHTM20243 · Policy on the deceased’s life not connected with any other transaction (except a trust): policy effected by the deceased for their own benefit but gifted later: special rule: term assurance policies excluded from special rule
  • IHTM20244 · Policy on the deceased’s life not connected with any other transaction (except a trust): policy effected by the deceased for their own benefit but gifted later: special rule: modification of the special rule for unit-linked policie
  • IHTM20251 · Policy on the deceased’s life not connected with any other transaction (except a trust): policy effected for the benefit of someone else from the start: introduction
  • IHTM20252 · Policy on the deceased’s life not connected with any other transaction (except a trust): policy effected for the benefit of someone else from the start: policy contains option to surrender bonuses to the transferor
  • IHTM20300 · Joint life and joint name policies: policies in joint names
  • IHTM20301 · Joint life and joint name policies: introduction
  • IHTM20302 · Joint life and joint name policies: ascertaining the beneficial interests
  • IHTM20303 · Joint life and joint name policies: the situations that can arise and the Inheritance Tax claims that can result
  • IHTM20304 · Joint life and joint name policies: joint mortgage protection policies
  • IHTM20331 · Potentially Exempt Transfer treatment for renewal premiums: payment of premiums for policies in accumulation and maintenance or trusts for disabled persons
  • IHTM20332 · Potentially Exempt Transfer treatment for renewal premiums: payment of premiums for policies gifted to individuals
  • IHTM20351 · Policy based on the life of another not connected with any other transaction (except a trust): introduction
  • IHTM20352 · Policy based on the life of another not connected with any other transaction (except a trust): procedure
  • IHTM20371 · Life policy linked with an annuity: introduction and background
  • IHTM20372 · Life policy linked with an annuity: what to do first
  • IHTM20373 · Life policy linked with an annuity: what to do when the Actuarial Team’s advice is received
  • IHTM20374 · Life policy linked with an annuity: the current statutory position
  • IHTM20375 · Life policy linked with an annuity: the Associated Operations test
  • IHTM20376 · Life policy linked with an annuity: annuity and policy issued by different companies
  • IHTM20377 · Life policy linked with an annuity: deferred annuity contract
  • IHTM20401 · Pure Endowment policy linked with a Term Assurance policy: Introduction
  • IHTM20402 · Differences between PETA and Discounted Gift schemes
  • IHTM20410 · PETA schemes
  • IHTM20421 · Discounted Gift Schemes: introduction
  • IHTM20422 · Discounted Gift Schemes: what to do
  • IHTM20423 · Discounted Gift Schemes: list of Companies and Scheme names
  • IHTM20424 · Discounted Gift Schemes: basic scheme
  • IHTM20425 · Discounted Gift Schemes: quantifying the Inheritance Tax claim
  • IHTM20426 · Discounted Gift Schemes: factors affecting the open market value of the retained rights
  • IHTM20427 · Discounted Gift Schemes: where the transferor’s life was uninsurable at the transfer date
  • IHTM20450 · Capital Conversion or Flexible Funding plans
  • IHTM20501 · Life policy linked with a loan and inheritance trusts: introduction
  • IHTM20502 · Life policy linked with a loan and inheritance trusts: what to do
  • IHTM20503 · Life policy linked with a loan and inheritance trusts: procedure
  • IHTM20511 · Life policy linked with a loan and inheritance trusts: original scheme: how the original scheme typically worked
  • IHTM20512 · Life policy linked with a loan and inheritance trusts: original scheme: legislation designed to counteract scheme
  • IHTM20513 · Life policy linked with a loan and inheritance trusts: original scheme: revised scheme following legislative changes
  • IHTM20521 · Life policy linked with a loan and inheritance trusts: reverse loan scheme: how the reverse loan scheme typically worked
  • IHTM20522 · Reverse loan scheme: legislation designed to counteract reverse loan scheme
  • IHTM20551 · Split or Retained Interest Trusts: Introduction
  • IHTM20552 · Split or Retained Interest Trusts: single lump sum investments
  • IHTM20553 · Split or Retained Interest Trusts: single lump sum investments: further details
  • IHTM20554 · Split or retained interest trusts: single lump sum investments: what to do
  • IHTM20555 · Split or retained interest trusts: regular premium arrangements
  • IHTM20556 · Split or retained interest trusts: regular premium arrangements: further information
  • IHTM20557 · Split or retained interest trusts: regular premium arrangements: what to do
  • IHTM20561 · Flexible Reversionary Trusts: Introduction
  • IHTM20562 · Flexible Reversionary Trusts: further details
  • IHTM20563 · Flexible Reversionary Trusts:what to do
  • IHTM20601 · Countrywide (formerly Premium Life) Assurance Company policies: introduction
  • IHTM20602 · Countrywide (formerly Premium Life) Assurance Company policies: what action to take
  • IHTM20603 · Countrywide (formerly Premium Life) Assurance Company policies: how to identify the two schemes
  • IHTM20611 · Policies with Canadian insurance companies: introduction
  • IHTM20612 · Policies with Canadian insurance companies: the companies concerned
  • IHTM20613 · Policies with Canadian insurance companies: governing law
  • IHTM20631 · Annuities payable to deceased/transferor by insurance companies: introduction
  • IHTM20632 · Annuities payable to deceased/transferor by insurance companies: purchased life annuities: types and potential claims
  • IHTM20633 · Annuities payable to deceased/transferor by insurance companies: annuities ceasing on the death
  • IHTM20634 · Annuities payable to deceased/transferor by insurance companies: annuities which continue after the death
  • IHTM20635 · Annuities payable to deceased/transferor by insurance companies: annuities purchased in joint names
  • IHTM20650 · Technical note on discounted gift schemes issued on 1 May 2007: introduction
  • IHTM20651 · Technical note on discounted gift schemes issued on 1 May 2007: Background
  • IHTM20652 · Technical note on discounted gift schemes issued on 1 May 2007: Inheritance Tax treatment of discounted gift schemes.
  • IHTM20653 · Technical note on discounted gift schemes issued on 1 May 2007: valuation issues
  • IHTM20654 · Technical note on discounted gift schemes issued on 1 May 2007: position where there are joint settlors
  • IHTM20655 · Technical note on discounted gift schemes issued on 1 May 2007: underwriting approach
  • IHTM20656 · Technical note on discounted gift schemes issued on 1May 2007: HMRC’s current basis of valuation
  1. Life Policies: Contents
  2. Discounted Gift Schemes: list of Companies and Scheme names

IHTM20423 | Discounted Gift Schemes: list of Companies and Scheme names

From HM Revenue & Customs · Inheritance Tax Manual

Discounted Gift Schemes are offered by a wide variety of providers, including most of the major insurance companies. The schemes are marketed with a variety of names, such as

  • Discounted Gift Plan

  • Discounted Gift Trust

  • Discounted Trust

  • Estate Planning Bond

  • Estate Preservation Plan

  • Inheritance Tax Plan

  • Inheritance Protection Plan

  • PELF Bond

  • PETA Bond

  • Reserved Interest Trust

  • Retained Interest Trust

  • Secure Estate Plan

  • Wealth Preservation Bond

If you come across an investment with one of these names then you are probably dealing with a Discounted Gift Scheme and should follow the instructions at IHTM20422.

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