1 A capital redemption policy is written for a fixed term e.g. 100 years and has no life assured. It is taxed like a non-qualifying policy: IPTM1120 https://www.gov.uk/hmrc-internal-manuals/insurance-policyholder-taxation-manual/iptm1120
2 The assignee is also entitled to top slicing relief
3 A Will executed before 6 April 2010, even if the testator is still alive, has a 21 year limit on accumulations. A living testator with capacity could execute a new will; or a simple codicil if he desires no other changes than to remove the restriction.
The Notes to the 2009 Act say:
"67 Accumulation is the process whereby, under the terms of a trust, the trustees are authorised or required to accumulate income, thereby converting it into capital. Section 13 abolishes the pre-Act rule against excessive accumulations. Because that rule was entirely statutory, the repeal of the four relevant statutory provisions necessarily abrogates it. The repeals apply only to instruments creating powers and duties to accumulate and taking effect on or after the commencement day, other than wills made before that day. Instruments taking effect before commencement of the Act are not affected.
- The removal of the statutory restrictions on accumulations does not mean that it is possible to accumulate income in perpetuity. This is because the rule against perpetuities, in effect, limits the life of a trust and so provides an upper limit on any accumulation".
Jack Harper