Search Legislation

Finance Act 2004

Status:

This is the original version (as it was originally enacted).

140Life policies etc.: restriction of corresponding deficiency relief

(1)In Chapter 2 of Part 13 of the Taxes Act 1988 (life policies, life annuities and capital redemption policies), section 549 (certain deficiencies allowable as deductions) is amended as follows.

(2)In subsection (1) for the words from “the total amount” to the end substitute “the allowable amount”.

(3)After that subsection insert—

(1A)The allowable amount is the total of any amounts that—

(a)were treated as a gain by virtue of section 541(1)(d), 543(1)(c) or 546C(7) on the previous happenings of chargeable events, and

(b)formed part of that individual’s total income for a previous year of assessment..

(4)This section applies in relation to a deficiency occurring in connection with a policy of life insurance if—

(a)it is issued in respect of an insurance made on or after 3rd March 2004, or

(b)it is issued in respect of an insurance made before that date but on or after that date—

(i)it is varied so as to increase the benefits secured (any exercise of rights conferred by the policy being regarded for this purpose as a variation),

(ii)there is an assignment (whether or not for money or money’s worth) of the rights, or a share of the rights, conferred by the policy, or

(iii)all or part of the rights conferred by the policy become held as security for a debt.

(5)This section applies in relation to a deficiency occurring in connection with a contract for a life annuity if—

(a)it is entered into on or after 3rd March 2004, or

(b)it is entered into before that date but on or after that date—

(i)it is varied so as to increase the benefits secured (any exercise of rights conferred by the contract being regarded for this purpose as a variation),

(ii)there is an assignment (whether or not for money or money’s worth) of the rights, or a share of the rights, conferred by the contract, or

(iii)all or part of the rights conferred by the contract become held as security for a debt.

(6)This section applies in relation to a deficiency occurring in connection with a capital redemption policy if—

(a)it is effected on or after 3rd March 2004, or

(b)it is effected before that date but on or after that date—

(i)it is varied so as to increase the benefits secured (any exercise of rights conferred by the policy being regarded for this purpose as a variation),

(ii)there is an assignment (whether or not for money or money’s worth) of the rights, or a share of the rights, conferred by the policy, or

(iii)all or part of the rights conferred by the policy become held as security for a debt.

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open The Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act without Schedules as a PDF

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open the Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made):The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources