Market leading insight for tax experts
View online issue

Captain S Cleghorn v HMRC

In Captain S Cleghorn v HMRC (TC01335 – 18 August) an individual (C) had invested £66 000 in an Isle of Man life insurance policy in March 2002.

During 2002/03 he withdrew £24 300 and he made further withdrawals in the next two years.

HMRC subsequently issued assessments under ITTOIA 2005 s 498.

The First-tier Tribunal upheld the assessments and dismissed C’s appeal.

Read the decision

Why it matters: ITTOIA 2005 s 498 provides for ‘periodic calculations’ where there is a partial surrender of a life insurance policy.

The Tribunal upheld an assessment issued in accordance with this provision.

Anyone contemplating such a part surrender should consider the tax consequences.

If you or your firm subscribes to, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.