Page 16 - F6 Slides (CGT,TT,ET AND PT)

Long-term assurance policies exclusions

• A person must disregard capital gains or capital losses determined on

the disposal of long term insurance policies as long as the policy is not

a foreign policy. A disposal includes the selling, maturing or

surrendering of a policy. In order to qualify for the exclusion, the

person receiving the proceeds must be l

the original owner or owners of the policy, or l

the spouse, nominee, dependent or the deceased estate of the original

owner, or l

the former spouse (of the original owner) who acquired the policy in terms of

a divorce order.