Budget: Life policies under HMRC tax avoidance spotlight

Budget documents on HMRC's website said people who own life insurance policies, capital redemption policies and life annuity contracts would be affected. Insurers and financial advisers with clients who own the policies or contracts would also be affected. The document explained the changes apply where there have been gains earlier in the life of the policy or contract - but the gains were not tax chargeable under the income tax rules. It said this could occur, for example, because earlier gains were attributable to a person who was not a UK resident. HMRC said the rules for calculati...