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Taxation of Life Assurance in Trust - Coggle Diagram
Taxation of Life Assurance in Trust
Income Tax
chargeable event may occur
and a chargeable gain arise
settlor is liable
if alive
and resides in UK
if dead or resident outside UK
the trustees are chargeable
45% (20% taxed w/in)
offshore
20% standard
45% thereafter
if trustee dead
UK beneficiary
if trustees surrender in the same tax year as settlor dies
liability on settlor
CGT
only if it is assigned for actual consideration
hardly happens
IHT
regular premium policy
value of first premium
can count as normal expenditure
single premium
transfer of value
POAT
charged
on an amount
equal to interest at the official rate
2.25%
(222,222 * 2.25% =£5000
no charge under £5000
on settlor's income
40% tax
can avoid if opt to GWR