Income Tax (Trading and Other Income) Act 2005

Contracts in accounting periods beginning before 1st January 1992: disapplication of sections 530 and 539(3)

109 (1) This paragraph applies to a contract for a life annuity made—

(a) after 26th March 1974, but

(b) in an accounting period of the insurance company or friendly society beginning before 1st January 1992.

(2) Section 530 (income tax treated as paid etc.) does not apply to gains from such a contract, except for the purposes of calculating relief under section 535 (top slicing relief).

(3) Sub-paragraph (2) is subject to—

(a) section 532 (relief for policies and contracts with European Economic Area insurers), and

(b) section 534 (regulations providing for relief in other cases where foreign tax chargeable).

(4) Section 539(3) (relief for deficiencies: application of section 539(1) only for determining individual’s extra liability) does not apply where the deficiency arises from such a contract.

(5) In sub-paragraph (1) “accounting period” is to be read in accordance with section 12 of ICTA.