Finance Act 2001

Method of charging gain to tax

11 (1) Section 547 is amended as follows.

(2) In subsection (1) (which makes provision for charging tax in cases where under section 541, 543 or 545 a gain is treated as arising) for “or 545” substitute “, 545 or 546C”.

(3) After subsection (1) insert—

“(1A) In their application in relation to a gain which is treated as arising by virtue of section 546C(7)(b), subsection (1) above and subsections (9) to (11) below are subject to section 546C(8).”.

(4) For subsection (4) (application of section in relation to an assignment of a share only in any rights) substitute—

“(4) References in subsection (1) above to the rights conferred by a policy or contract are, in the case of an assignment or surrender of only a part of or share in any rights, references to that part or share.”.

(5) In subsection (5A) (gains treated under section 543 as arising in connection with certain life annuity contracts) after “section 543” insert “or 546C(7)(b)”.

(6) In subsection (7) (gains treated as arising under section 541 or 543 in connection with certain friendly society policies) for “or 543” substitute “, 543 or 546C(7)(b)”.