IPTM3720 - Foreign policies: basic rate tax not treated as paid

Basic rate tax is not treated as paid where the policy is:

  • a 바카라 사이트˜foreign policy of life insurance바카라 사이트™, unless it is issued by the UK branch of a non-UK resident insurer
  • a 바카라 사이트˜foreign capital redemption policy바카라 사이트™
  • a life annuity issued by a provider whose annuity business does not fall within UK 바카라 사이트˜basic life and general annuity business바카라 사이트™.

In these circumstances, the insurer will not have been within the 바카라 사이트˜I minus E바카라 사이트™ system that effectively collects tax on the insurer바카라 사이트™s profits attributable to assets used to pay benefits to policyholders. As a result, basic rate tax is not treated as having been paid on any gains that arise on the policy or contract

However, if the policy or contract falls outside the definitions of 바카라 사이트˜foreign policy바카라 사이트™ or 바카라 사이트˜foreign contract바카라 사이트™ - see IPTM3330 - basic rate tax is treated as having been paid on any gains arising from the policy. See IPTM3810 regarding other policies and contracts where basic rate tax is not treated as paid on gains.