Investments tax

Investments held by insurers may be taxed under the chargeable gains rules or the loan relationship rules.  For many investments it is clear which rules should be applied but there can be difficulties in practice when classifying some non-standard assets and multi-asset funds.

Whilst loan relationship assets are taxed on the basis of accounting entries which should be readily available, chargeable gains assets require specific calculations to be made solely for tax purposes.  These can be extremely complex and prone to error as taxable gains which may have accrued over many years often cannot be reconciled to the reported accounting gains.

We can calculate chargeable gains or review calculations prepared in house to identify any errors before the figures are included in the tax return.

Insurers often invest via collective investment schemes rather than directly and there are a number of additional tax rules to consider for such investment funds.