On the Value in Practice of a Life Interest, allowing for Income Tax

1904 ◽  
Vol 38 (4) ◽  
pp. 344-347
Author(s):  
George King
Keyword(s):  
Income Tax ◽  
Life Assurance ◽  
Annual Charge

When an investor buys a life interest, or an annual charge upon a life interest, the income does not reach him until tax has been deducted from the whole amount, and yet the purchaser has to pay away a material portion of the income in life assurance premiums, on which he is unable to recover the tax.

Income Tax as Affecting Life Assurance Offices

1946 ◽  
Vol 72 (1) ◽  
pp. 35-78
Author(s):  
A. H. Shrewsbury
Keyword(s):  
United Kingdom ◽  
Income Tax ◽  
Point Of View ◽  
Sickness Insurance ◽  
Life Assurance ◽  
Tax Legislation ◽  
The United Kingdom ◽  
The Subject ◽  
Insurance Business ◽  
National Defence

‘If there be one point free from obscurity in the Act of 1842 it is this, that the Legislature intended all traders, whether in groceries, annuities or other articles of commerce, to be assessed upon the same footing.’ Lord Watson in The Gresham Life Assurance Society υ. Styles.The main object is to discuss principles and therefore many points of detail will be omitted, however intrinsically interesting they may be. Satisfactory consideration of principles entails reference to all classes of business which involve an actuarial valuation (viz. life assurance and annuity business, sinking fund business and permanent sickness insurance business). Reference will be made to the National Defence Contribution and the Excess Profits Tax, which are based upon income-tax legislation. The subject in mind is the relation of such taxation to insurance business and funds of the classes mentioned, as distinct from other aspects of income tax which an insurance office encounters, and it will be considered solely from the point of view of an office established in the United Kingdom which transacts business only in the United Kingdom. In view of the paper by Messrs S. J. Rowland and F. H. Wales on ‘The Taxation of the Annuity Fund’ (March 1937, J.I.A. Vol. LXVIII), only brief reference will be made to annuity business, and it will be assumed that it is unnecessary, in describing taxation processes, to include explanations or qualifying phrases on account of annuity business.

INCOME TAX AND LIFE ASSURANCE

BMJ ◽  
1907 ◽  
Vol 1 (2418) ◽  
pp. 1094-1094 ◽  
Author(s):  
F. W. Jordan
Keyword(s):  
Income Tax ◽  
Life Assurance

Note on annuity certain contracts

1952 ◽  
Vol 11 (01) ◽  
pp. 31-37
Author(s):  
J. Hamilton-Jones
Keyword(s):  
Income Tax ◽  
Life Assurance ◽  
Life Annuity ◽  
Standard Rate

The contracts discussed in this note are annuities certain provided by Life Offices. A schedule for income-tax purposes dividing payments into capital and interest determines the variable net sum paid by the office from year to year to the payee under each contract; it is the effect of this arrangement on the office to which attention will be drawn.To comply with the Assurance Companies Acts, 1909–46, and the Finance Act, 1938, section 27, the office must pay the considerations for such contracts into a fund which is separate from the life assurance and life annuity funds, and which must not relate to business effected before 1 January 1938. This fund is taxed on an interest less expenses basis (subject to certain limitations), and the full standard rate of tax is applied. However, the office is permitted to withhold tax on the interest portion of each annuity payment from the payee, and to retain this tax provided its amount is exceeded by the tax suffered on interest credited to the fund, adjusted for the relief on expenses. Profits tax will be ignored in this note; the tax position of the office as a whole has such an intimate bearing on the problem that further discussion would be outside the intended scope of the present analysis.

The Liability of Life Assurance Companies to pay Income Tax upon Income arising from Investments in Foreign Countries

1903 ◽  
Vol 37 (4) ◽  
pp. 402-436
Keyword(s):  
Great Britain ◽  
Income Tax ◽  
Life Assurance ◽  
Foreign Countries

The point in this case was whether the Society was liable to be assessed in respect of interest, dividends, and rents, arising from investments in foreign countries.The Society had large funds invested in various forms in foreign countries, in some of which countries the Society carried on the business of Life Assurance, and in others of which it carried on no business of any kind. It was admitted that only a part of the income arising from these investments was remitted to Great Britain, the rest of such income being either reinvested or remitted direct to other foreign countries for investment, or applied in payment of establishment and other expenses in the country where the interest was earned, or remitted direct to other foreign countries for the general purposes of the Society.

The taxation of annuity funds

1950 ◽  
Vol 76 (3) ◽  
pp. 237-252
Author(s):  
G. V. Bayley
Keyword(s):  
Income Tax ◽  
Presidential Address ◽  
Present System ◽  
Life Assurance ◽  
The Subject ◽  
The Moment ◽  
Life Annuities ◽  
General Taxation

With these words Sir George Maddex, in his Presidential Address, directed our attention to the present system of taxation of annuity funds. M. E. Ogborn, on 27 October 1947, touched on the subject of uneven incidence of tax upon differing funds, and some uneasiness about the consequences was manifest in the discussion on that paper.‘Income tax is another subject on which it is difficult for me to speak freely, but I cannot refrain from noting that the general taxation position, as it now affects life assurance and pensions business, has given rise to serious anomalies: ...one has only to consider... that the terms quoted by offices for the purchase of life annuities vary to a quite remarkable extent, depending on the distribution of the company's business between various funds, as it exists at the moment, and the consequential incidence of tax;...’

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