Can you please clarify one point. - First let me confirm that this is not an offshore policy.
OK,I confirm that my wife has no taxable income at all, so are you saying that once the deed of transfer to her is complete she could decide on full encashment (£72k....made up of initial investment of £50k plus interest of £22k) without paying any tax OR are you saying that she would have to pay tax 20% tax on the profit between her tax allowance and the £22k profit. Sorry that I have not properly understood your response. Regards.