IHTM14421 - Lifetime transfers: gifts with reservation (GWRs): insurance policies: introduction

In general the gift with reservation (GWR) rules given above also apply to gifts in relation to policies. However, policies present special problems, because, for example

  • the donor will normally pay premiums, and so make gifts, over a period of years
  • they are used for tax planning.

FA86 contains special provisions directed at both these problems. »Ê¹ÚÌåÓýapp following instructions deal with these provisions and also illustrate the application of the normal GWR rules to policies. You will need to consider

  • gifts on or after 18 March 1986 (IHTM14431) to which the GWR rules can apply
  • identification of the property given (IHTM14440)
  • the reservation (IHTM14451)