IPTM3600 - Personal portfolio bonds: background: ITTOIA05/S515
The general regime for charging gains on life insurance policies, life annuity contracts and capital redemption policies, referred to as the chargeable event regime, postpones the tax on underlying economic gains until the policy or contract comes to an end.
The personal portfolio bond (PPB) rules are anti-avoidance provisions aimed at preventing the placement of personal assets within the chargeable event regime to benefit from postponement of tax. The rules apply where the property that determines the benefits under the policy or contract is personal to the holder or beneficiary under the contract in a way that goes beyond the usual choices offered, commonly described as 바카라 사이트˜managed fund바카라 사이트™, 바카라 사이트˜international fund바카라 사이트™ and similar.
One example of this is a policy where benefits are determined by reference to shares in the policyholder바카라 사이트™s private trading company, which he has transferred to the insurer.
The PPB regime applies an annual charge on the policyholder. The rules apply to a policy or contract that is a personal portfolio bond at the end of an 바카라 사이트˜insurance year바카라 사이트™, unless this is the 바카라 사이트˜final insurance year바카라 사이트™ 바카라 사이트“ these terms are explained at IPTM3505. The calculation made to determine whether a gain arises and, if so, its amount is in addition to any other calculation required under the chargeable event regime.