Where there is a change of life assured on a qualifying policy, the policy before the change and the replacement policy after the change are treated as a single policy and no chargeable event arises on the change, provided that the following conditions are met
Consideration for these purposes includes any fee payable to the
insurer for administering the change and any commission paid to a
financial adviser or other person.
The policies are treated as a single policy for all purposes of the chargeable event rules, including the calculation of gains on both excess events and part surrender or assignment events - see IPTM7600 onwards.
Where there is a change in life assured in connection with the assignment of a policy under a divorce settlement ordered or ratified by the Court then no consideration in money or money’s worth is receivable in connection with the change on that account. There is more on assignments on divorce at IPTM7370 and IPTM7375.
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