Section 742: Meaning of “the insured”
2830.This section gives the meaning of “the insured” for this Chapter. It is based on section 580A of ICTA.
2831.Sections 580A and 580B of ICTA refer throughout to “the insured”. During the Standing Committee debate on the Finance Bill which introduced these provisions, it was considered whether the exemption extended to cover insurance policies taken out by parents on behalf of their children. The written answer given by the Financial Secretary to the Treasury was that in such a case the child would be “the insured” to enable the exemption to apply. In practice the exemption has been treated as applying to payments under such policies. In the light of this, sub-paragraph (b) has been added to put the matter beyond doubt. See Change 124 in Annex 1.