Corporation Tax treatment of investment life insurance contract payouts
This tax information and impact note is about a change that clarifies when a company that is not a life insurance company can claim a partial Corporation Tax exemption on a payout from an investment life insurance contract.
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The measure confirms that the existing Corporation Tax exemption is available only when an investment life insurance contract is held for a purpose unrelated to the company’s trade.
It was announced at Budget 2026 and applies to accounting periods beginning on or after 1 January 2027.