vertical privity. 1  The legal relationship between links in a productâs distribution chain. 2  The privity between a person who signs a contract containing a restrictive clause and the person acquiring the property that is so restricted.
The taxation of life insurance proceeds or endowment policy proceeds payable during the insured`s lifetime is governed by Code 72, the same section that governs the taxation of the payments received under annuity contracts.here the proceeds of an endowment or surrendered policy are paid during life in a lump sum, any excess of such proceeds over the cost of the policy is taxable income [I.R.C. 72(e); Reg. 1.72-11(d)]. The gain is considered ordinary income and not capital gain.
Most forms of investment carry a tax liability on any gains. By educating yourself on your options you can reduce that liability. Some of the main ways to reduce the tax you pay on savings and investments include: 1  Using any allowances that may be available to reduce tax liability.2  Using tax advantaged investment structures â the most obvious being a pension. 3  Taking full advantage of your annual capital gains tax allowance.rish government bonds are exempt from capital gains tax in the hands of individuals. For this asset class, income, rather than capital gains, tends to be the main source of investment return in most periods.