Finance Act 2008

Definitions

1 (1) In this Schedule—

• “investment life insurance contract” means—

  (a)

  a policy of life insurance which has, or is capable of acquiring, a surrender value,

  (b)

  a contract for a purchased life annuity, or

  (c)

  a capital redemption policy,

  other than a relevant excluded contract,

• “relevant company” means a company which is not a life insurance company, and

• “relevant excluded contract” means—

  (a)

  an investment life insurance contract under, or purchased with sums or assets held for the purposes of, a registered pension scheme, or

  (b)

  (subject to sub-paragraph (3)) a policy of life insurance issued in respect of an insurance made before 14 March 1989.

(2) In sub-paragraph (1)—

• “capital redemption policy” means a contract made in the course of capital redemption business (as defined in section 431(2ZF) of ICTA),

• “life insurance company” means—

  (a)

  an insurance company (as defined in subsection (2) of section 431 of ICTA) which carries on long-term business (as defined in that subsection), or

  (b)

  a friendly society which would be such an insurance company but for the words “(other than a friendly society)” in the definition of “insurance company” in that subsection, and

• “purchased life annuity” means an annuity—

  (a)

  granted for consideration in money or money’s worth in the ordinary course of a business of granting annuities on human life, and

  (b)

  payable for a term ending at a time ascertainable only by reference to the end of a human life (whether or not it may in some circumstances end before or after the life).

(3) A policy of life insurance issued in respect of an insurance made before 14 March 1989 is to be treated for the purposes of this Schedule as issued in respect of one made on or after that date if it is varied on or after that date so as to—

(a) increase the benefits secured, or

(b) extend the term of the insurance;

and any exercise of rights conferred by the policy is to be regarded for this purpose as a variation.

(4) In this Schedule—

• “fair value accounting” has the same meaning as in Chapter 2 of Part 4 of FA 1996 (see section 103(1) of that Act),

• “non-trading credit” has the same meaning as in that Chapter (see section 82(3) of that Act),

• “registered pension scheme” has the same meaning as in Part 4 of FA 2004, and

• “related transaction” has the same meaning as in Chapter 2 of Part 4 of FA 1996 (see section 84(5) and (6) of that Act).