Life Insurance  

HMRC removes life insurance paperwork for divorcees

HMRC removes life insurance paperwork for divorcees

HM Revenue and Customs has amended the information requirements for life insurance qualifying policies to reduce the paperwork burden on beneficiaries in the event of divorce, or following the death of an original beneficiary.

Under the new rules beneficiaries will no longer have to provide a statement if the policy has no further premiums payable and beneficial ownership is transferred in certain circumstances.

These circumstances include assignment between spouses or civil partner following divorce or dissolution of a civil partnership, into or out of trust and following death of the original beneficiary under the policy.

Article continues after advert

The tax information and impact note updates the Life Insurance Qualifying Policies (Statement and Reporting Requirements) Regulations 2013.

The exception will apply to policies issued before 21 March 2012 and will impact a relatively small number of individuals, according to the government department.

The objective of the measure is to support the market by removing a legislative requirement, reducing an administrative burden on beneficiaries of policies and supporting insurers who no longer need to process statements following such events.

It noted that relevant stakeholders were informed of the proposed measure in November.

Andrea Leadsom, economic secretary to the Treasury, has read the tax information and impact note and is satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impacts of the measure.