IHTM20241 - Special rule: Introduction

IHTA84/S167 provides special rules, applicable for lifetime transfers only, for the valuation of

• policies of insurance payable on a person’s death
• contracts for deferred annuities payable from a person’s death.

The rules provide a minimum value which is, broadly, the amount of the premiums paid less any sum received under the policy or contract prior to the transfer. The value produced is thus only used if it exceeds the open market value ( IHTM20083).

Exclusions to and a modification of this rule are set out in IHTM20242 - IHTM20245