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Chapter IPTM7380

Document Cited in Related
Vincent
Published date19 March 2016
Record NumberIPTM7380
CourtHM Revenue & Customs
IssuerHM Revenue & Customs

Where there is an assignment of a policy or contract between spouses, civil partners orunmarried partners in a couple who have separated, similar principles apply as totransfers between divorcing spouses. It is not possible to give comprehensive advice toinsurers, as the circumstances in each case will need to be considered, but it is possibleto give some pointers. An insurer will not be penalised for failing to issue a certificateor issuing an incorrect certificate if its action was reasonable based on the informationin its possession at the time.

Separated spouses and civil partners

If a policy or contract is assigned between separated spouses or civil partners under aCourt Order then, as with transfers on divorce, the assignment will not be for money ormoney’s worth. In the absence of a Court Order, the assignment will be for money ormoney’s worth if it is on separation.

In contrast to the position under transfers on divorce, an insurer should not assume thata policy or contract has been assigned under a Court Order simply because it knows that acouple have separated. If there is no mention of divorce or formal dissolution, orevidence of a pre-nuptial agreement, the insurer should treat the assignment as givingrise to a chargeable event unless it has information to suggest that the...

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