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These instructions refer to gains on foreign

• life assurance policies
• life annuities
• capital redemption policies

If the rights of a policy are held in trust, any gain resulting from a chargeable event, is usually chargeable on the settlor. However the gain is chargeable on the trustee if any of the following apply.

• the individual who created the trust is not resident in the UK at the time of the chargeable event
• the individual who created the trust is dead at the time of the chargeable event - but see IPTM3240 where the event occurs in the tax year in which the settlor died. 
• a company or other entity created the trust, and is not resident in the UK at the time of the chargeable event
• a company or other entity created the trust, and has come to an end at the time of the chargeable event.

Gain deemed to be income

Any such gains of a bare or simple trust are treated as income of the beneficiary.

Gains that are deemed to be trustees� income are chargeable at the trust rate

Gains to be excluded from Return

A gain is not deemed to be income of trustees, and is not entered on the Trust and Estate Tax Return if

• the policy or life annuity was made before 17 March 1998; and
• the policy or life annuity has not been enhanced after 16 March 1998 by paying further non-contractual premiums or in any other way; and
• an individual created the trust before 17 March 1998.

Help sheet has more information.