Investment Products, Excepted Group Life Policies and Corporate Trusts

The UK has a special tax regime that applies to life insurance policies. The CMS Private Client Tax Practice has extensive experience assisting life insurance providers and their policyholders to navigate the complex tax rules governing life insurance policies marketed to high net worth individuals.

CMS expertise in life insurance providers

We have particular expertise in assisting life insurance providers with:

The tax drafting of policy documents in respect of new life insurance products
Annual tax ‘health checks’ of existing policy documents and providing advice in relation to the unique circumstances of potential policyholders. 

CMS regularly advises high net worth individuals on:

• Income tax
• Inheritance tax
• Cross-border implications of subscribing to life insurance products.

CMS expertise in excepted group life policies and corporate trusts

The CMS Private Client Tax Practice also advises insurance companies, corporate clients and corporate trustees on the tax implications of excepted group life policies (“EGLPs”) and establishing employee healthcare trusts. Both types of product have become increasingly popular in recent years and raise various tax issues which require specialist advice.

CMS’ recent experience includes:

• Advising a major professional services company on establishing a healthcare trust.
• Advising a bank on the inheritance tax issues relating to the establishment of a trust for account holders.
• Advising a major betting company on establishing a trust to satisfy regulatory requirements.
• Advising various insurance providers on the tax drafting of policy documents in respect of new life insurance products.
• Advising various insurance companies on tax issues relating to EGLPs.

CMS can also help with wider private client tax services.