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CGT exempt assets—policies of insurance and non-deferred annuities

A gain accruing on the disposal of the rights, or an interest in the rights, conferred by a non-life policy of insurance is not a chargeable gain¹. A non-life policy includes a capital redemption policy². The exemption does not, however, apply in relation to the disposal of rights conferred by a policy of insurance against the risk of damage to, depreciation of, or loss of, assets so far as those rights relate to chargeable assets³.

A gain accruing on a disposal of the rights, or of an interest in the rights, conferred by a non-deferred annuity or an annuity granted (or deemed to be granted) under the Government Annuities Act 1929 is not a chargeable gain⁴. The exemption applies if the annuity is granted in the ordinary course of a business of granting annuities on human life, irrespective of who carries on the business.

'Interest' in relation to any rights means an interest as a co-owner