Part 4Savings and investment income
C1C3C2Chapter 9Gains from contracts for life insurance etc.
Pt. 4 Ch. 9 applied (with modifications) by The Child Trust Funds Regulations 2004 (S.I. 2004/1450), reg. 38 (as amended (6.4.2010) by S.I. 2010/582, regs. 1, 18)
Pt. 4 Ch. 9: power to exclude conferred (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 61(4) (with s. 147, Sch. 17)
Personal portfolio bonds
516Meaning of “personal portfolio bond”
1
In this Chapter “personal portfolio bond” means a policy of life insurance, contract for a life annuity or capital redemption policy which meets conditions A and B.
This is subject to section 517.
2
Condition A is that, under the terms of the policy or contract, some or all of the benefits are determined by reference to—
a
fluctuations in, or in an index of, the value of property of any description, or
b
the value of, or the income from, property of any description.
3
For this purpose it does not matter whether or not the index or property is specified in the policy or contract.
4
Condition B is that the terms of the policy or contract permit the selection of the index or some or all of the property by—
a
the holder of the policy or contract,
b
a person connected with the holder,
c
the holder and such a connected person acting together,
d
a person acting on behalf of the holder,
e
a person acting on behalf of a person connected with the holder, or
f
a person acting on behalf of the holder and such a connected person acting together.
5
In subsection (4) “holder”, in the case of a policy or contract held by two or more persons, means any of them.
Pt. 4 Ch. 9 applied (with modifications) by The Individual Savings Account Regulations 1998 (S.I. 1998/1870), reg. 36 (as added by S.I. 1998/3174, reg. 12 and as amended (6.4.2008) by S.I. 2008/704, regs. 1, 17(4))