Schedule 27 - Life polices, life annuities and capital redemption policies
Finance Bill
11:00 am
Miss Melanie Johnson (Economic Secretary, HM Treasury; Welwyn Hatfield, Labour)
The amendment would not have any effect, as existing legislation has the desired result. As the hon. Gentleman said, the measure relates to the application of the complex principles of property law to life insurance policyholders. Some whole assignments will be deemed to be assignments of a part for tax purposes. It covers assignments and insurance contracts where, economically, only part of the contract is transferred. It is not necessary to deem something to be a part assignment when it is already a part assignment in law.
The amendment deals with the transfer of an insurance contract by tenants in common when not all the tenants dispose of their interest in law. This is an assignment of a precise part of the contract by each tenant to reduce his own interest in the contract. It does not therefore need to be deemed to be a part assignment for tax purposes. The amendment is unnecessary and I urge the Committee to reject it.
Mr. Burnett rose—