Qualifying WOL - chargeable event?

benjaminfabi

Hi,

i'm looking at WOL plan, which meets all the conditions to be qualifying policy but is only just 9 years old. It wasn't placed in trust at outset!

If I put it into trust now:

1. Is that a chargeable event?
2. What is the calculation for the tax liability? (in this case, the premiums paid are £31,500 but the value is only £22,000. Obviously units have been cancelled to pay for the life cover in the meantime.

Also, as a rider question, if the premiums increase to more than £3,600 at the review next year, what is the impact on qualifying status?

richardgough

Not a chargeable event as no consideration - assignment not for money / moneys worth.

Premiums paid > SV so no gain anyway?

SV of £22,500 is a gift from the estate (so CLT covered by NIL rate band).

benjaminfabi

Great thanks Richard.