IPTM1530 | Outline of the chargeable events regime: types of policy and contract chargeable

Life insurance policies, whether ’qualifying’ or ’non qualifying’, see IPTM2010 onwards, may be chargeable, depending on the nature of the event potentially giving rise to the charge. The insurer may be UK or foreign resident. If the insurer is UK resident, the person chargeable will usually be treated as though tax at the basic rate had been paid- see IPTM3810. The insurer may be a friendly society as well as a life insurance company.

In addition to those on life policies, gains on life annuity contracts and capital redemption policies are also within the chargeable event regime.