By Kira Nickerson The ABI has started talks with the Inland Revenue to discuss the basis on which ta...
By Kira Nickerson The ABI has started talks with the Inland Revenue to discuss the basis on which tax is calculated on a jointly owned life policy switching to single ownership in the event of a divorce. The Revenue views the switch on divorce as a partial encashment, whereas UK life offices view it as a full surrender. Different tax calculations are used on partial surrenders and depending on the policy's worth, the tax incurred could be substantially more than if it was calculated as a full surrender, said Anne Young, senior technical manager at Scottish Widows. Tax is usually only inc...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes