Income Tax (Trading and Other Income) Act 2005

Pre-3rd March 2004 policy or contract: calculation of deficiencies

117 (1) In the case of a 2004 Act excluded policy or contract, section 541(4) (calculation of deficiencies) applies with the omission of paragraph (b) and the word “and” immediately preceding it.

(2) In this paragraph “a 2004 Act excluded policy or contract” means—

(a) a policy of life insurance issued in respect of an insurance made before 3rd March 2004,

(b) a contract for a life annuity made before that date, or

(c) a capital redemption policy where the contract was made before that date,

but excluding a policy or contract within sub-paragraph (3).

(3) A policy or contract is within this sub-paragraph if on or after 3rd March 2004—

(a) it is varied so as to increase the benefits secured,

(b) there is an assignment of the rights, or a share of the rights, conferred by it, or

(c) all or part of those rights become held as security for a debt.

(4) Any exercise of rights conferred by a policy or contract counts as its variation for the purposes of sub-paragraph (3)(a).