IPTM3640 - Chargeable events: personal portfolio bonds: meaning: property selection
A policy or contract is not a personal portfolio bond merely because its terms permit the selection of property as described at IPTM3610 if all of the property which may be selected
- falls within the following categories - property categories
- property appropriated by the insurer to an internal linked fund
- units in an authorised unit trust, see CTM48125
- shares in an approved investment trust, see CTM47000 onwards
- shares in an open-ended investment company, see CTM48305
- a life policy, life annuity or capital redemption policy, unless excluded
- interests specified below in collective investment schemes, see CTM48060, and
- meets either the general or class property selection conditions
general condition: property meets this condition if, at the time when it may be selected, the opportunity to select property falling within the same category is available to
- all policyholders of the insurer, or
- persons acting on behalf of those policyholders
class condition: property meets this condition if, at the time when it may be selected, the opportunity to select property falling within the same category is available to
- a particular class or classes of policyholders of the insurer
- persons acting on behalf of the members of that class or those classes.
The meaning of class for this purpose is given at IPTM3630.
A life policy, life annuity or capital redemption policy is ‘excluded’ if
- the policy or contract is itself a personal portfolio bond
- the value of any benefits under the policy or contract is determinable directly or indirectly by reference to a personal portfolio bond
- a personal portfolio bond is property related to the policy or contract.
Cash includes sums in bank or building society accounts, but not cash that is acquired in order to realise a gain on its disposal.
Specified interests in collective investment schemes are in the main units in non-UK unit trusts. Interests in non-UK investment trust companies are excluded, as ‘closed-ended’.
More detailed guidance, aimed largely at insurers and practitioners, is given at IPTM7700 onwards. CT&VAT (Technical) Insurance Group will advise HMRC offices where necessary - see ‘Technical Help’ link on left hand bar.
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