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Life insurance policies held within valid ISAs

»Ê¹ÚÌåÓýapp separate insurance Individual Savings Account (ISA) was abolished on 5 April 2005.

Since 6 April 2005, provided certain conditions are met, life insurance policies can be held within the stocks and shares ISA, or, since 6 April 2017, within the Lifetime ISA. »Ê¹ÚÌåÓýappre is detailed information on ISAs in the published on gov.uk. Insurers can find the guidance useful to . »Ê¹ÚÌåÓýapp ISA Regulations themselves are contained in SI 1998/1870.

No requirement to report gains on policies held in valid ISAs

Where a policy is held within a valid ISA, chargeable event gains can still arise on, for instance, a surrender of the policy. However, under the ISA Regulations, such gains are exempt from tax.

»Ê¹ÚÌåÓýapp ISA Regulations also specifically disapply the requirement for insurers to report chargeable event gains to policyholders and HMRC where the policy is held within a valid ISA and insurers must not issue certificates for gains on a policy in these circumstances.

»Ê¹ÚÌåÓýapp exemption from tax on chargeable event gains on policies held in an ISA doesn’t apply to gains on termination events as a consequence of the ISA becoming void â€� see IPTM7220 â€� or any excess events which have arisen as a result of part surrenders of the policy before the termination event.