Investment Education PLC

Life Products Taxation
Last Updated - 3 October 2008
Todays Date -
Return to CoursePrint course
Duration 1 day
Available as an in-house course


To explain the taxation of policyholder premiums from time of receipt in the funds until proceeds are paid.

To explain the taxation of life products from the corporate and personal perspective.

To give a good introduction to those who are involved in reporting taxable events. Especially applicable to companies who have to report under the new fiscal representative rules.


  • Client service staff
  • Product development executives
  • Help desk staff
  • Technical staff who need to understand  product structure and taxation
  • Accountants with no or limited knowledge
  • Internal audit and compliance staff in this area
  • IT executives involved in taxation systems for life companies

  • Content

    -Tax in life, pensions and overseas funds introduction.

    -Unit linked funds, with-profit funds and non-linked unitised with-profit funds.

    -Comparison of these to a unit trust.

    -Basic valuation points.

    -Life, Pension, Friendly Society, PHI and CICs policies.

    -Overview of a life company's allocation between the business and policyholders including bonuses, reversionary interests, terminal costs, etc.

    -Capital units and related charging structures on policies.

    -Actuarial valuation and embedded values - basic review.

    -Morbidity, mortality and related reserves.

    -Matching policy types to businesses and funds.

    -Qualifying and non-qualifying policies, exempt policies.

    -Overseas policies.

    -Chargeable events on the above including chargeable losses and Friendly Society enhancements.

    -Policy enhancements, endorsements, encashments, 5% rule, top slicing.

    -Policy assignments.

    -Personal Portfolio Bonds - the new rules and complexities.

    -Policies to back mortgages.

    -The Fiscal Representative new rules - how these apply in practice.

    -Compensating policyholders - taxation on the payments.

    -Putting a policy into trust - the practicalities.

    -Types of trust arrangements used.

    -Gifts to children - insurable interest: the tax consequences of gifting to children.

    -IHT planning: PETS and normal expenditure out of income.

    -Closure of the Lady Ingram Rule and its effect on Life Policies.

    -Life Annuities: the different types and tax rates applicable.

    -Payments to overseas policy holders.