Income Tax (Trading and Other Income) Act 2005

476 Special rules: foreign policies

(1) In the application of this Chapter to foreign policies of life insurance and foreign capital redemption policies, certain special rules apply.

(2) See, in particular—

• section 474(3) to (5) (certain foreign policies treated as not being qualifying policies),

• section 528 (reduction in amount charged: non-UK resident policy holders),

• sections 531 to 534 (under which foreign policies are excepted from section 530 (income tax treated as paid etc.) subject to certain reliefs), and

• section 536(6) (method of calculating top slicing relief).

(3) In this Chapter—

• “foreign policy of life insurance” means—

  (a)

  a policy of life insurance issued by a non-UK resident company, and

  (b)

  a policy of life insurance which forms part of the overseas life assurance business of an insurance company or friendly society as a result of section 431D(1)(a) of ICTA (business with a non-UK resident policy holder),

• “foreign capital redemption policy” means—

  (a)

  a capital redemption policy issued by a non-UK resident company, and

  (b)

  a capital redemption policy which forms part of the overseas life assurance business of an insurance company as a result of section 431D(1)(a) of ICTA, and

• “overseas life assurance business” has the same meaning as in Part 12 of ICTA (see section 431D of that Act).