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Policy protection

25 October 2011
Issue: 4327 / Categories: Forum & Feedback
A client recently died, his wife having predeceased him in 1980. The client had a life policy within a marriage settlement, which dated from 1934

A client of mine died recently. He had within a marriage settlement dated 1934 an endowment-type life policy which I suspect was probably insisted upon by his new in-laws to protect his wife who died in 1980.

My client continued to pay the premium after that date and the policy now has considerable value.

In Taxation 1 June 2006 there were replies to a query (Tax free of old) in which a correspondent enquired about the exemption from income tax and capital gains tax for a policy taken out in 1967 i.e. prior to 20 March 1968.

My question now is whether this exemption also applies to inheritance tax.

I would be very grateful for any information and advice that readers can give in this regard.

Query 17 887 –...

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