Unapproved group life assurance without capital gains tax


There has been a longstanding difficulty for employers wishing to arrange unapproved group life assurance. The employer can be subject to a tax charge on the “deemed gain” on the second and subsequent deaths. The Finance Act 2003 introduces some changes which mean that, if certain conditions are met, group policies should escape this charge. For existing group policies, action will need to be taken before 6 April 2004 to take advantage of the changes retrospectively to 9 April 2003.

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