IPTM3100 - The charge to tax: income tax and corporation tax

Chargeable event gains are charged to income tax where, as is usually the case, the policy is for the benefit of individuals, or settled on trust by individuals.

Companies sometimes hold life investment bonds, perhaps because of the flexibility of the investment medium which can, for example, allow for the restructuring of underlying investments without an immediate charge to tax.

Companies are within the loan relationships rules in respect of most life policies, purchased life annuities and capital redemption policies that they own. The relevant legislation is in CTA09/PT6/CH11.