Qualifying WOL - chargeable event?


i'm looking at WOL plan, which meets all the conditions to be qualifying policy but is only just 9 years old. It wasn't placed in trust at outset!

If I put it into trust now:

  1. Is that a chargeable event?
  2. What is the calculation for the tax liability? (in this case, the premiums paid are £31,500 but the value is only £22,000. Obviously units have been cancelled to pay for the life cover in the meantime.

Also, as a rider question, if the premiums increase to more than £3,600 at the review next year, what is the impact on qualifying status?

Benjamin Fabi FPFS
Chartered Financial Planner



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