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A query was raised regarding whether the surviving holder of a unit-linked life insurance policy must pay Inheritance Tax on the policy rights. The DGT indicates that if the survivor is not entitled to receive the benefit and is not a beneficiary, they are not liable for such tax.
This clarification confirms that mere ownership or holding of a policy does not trigger inheritance tax liability unless the individual is a designated beneficiary entitled to the insurance proceeds.
The tax team reviews your specific situation.
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