Finance Act 2013

Special charging rules for savings and investment income

86 (1) Section 528 (reduction in amount charged under Chapter 9 of Part 4: non-UK resident policy holders) is amended as follows.

(2) The amendments made by sub-paragraphs (3) to (6) apply to section 528 as substituted by paragraph 3 of Schedule 8 to this Act, and have effect in relation to policies and contracts in relation to which that section as so substituted has effect.

(3) In subsection (1)(b), for the words from “on which” to the end substitute “that are foreign days”.

(4) After subsection (1) insert—

“(1A) Foreign days” are—

(a) days falling within any tax year for which the individual is not UK resident, and

(b) days falling within the overseas part of any tax year that is a split year as respects the individual.”

(5) In subsection (3), in the definition of “A”, for “days falling within subsection (1)(b)” substitute “foreign days”.

(6) In subsection (8), for “subsection (1)(b)” substitute “subsection (1A)(a) and (b)”.

(7) The amendments made by sub-paragraphs (8) to (10) apply to section 528 as in force immediately before the substitution mentioned in sub-paragraph (2) so far as that section as so in force continues to have effect after the substitution.

(8) In subsection (1), for the words from “the policy holder” to the end substitute “there are one or more days in the policy period that are foreign days.”

(9) After that subsection insert—

“(1A) Foreign days” are—

(a) days on which the policy holder is not UK resident, and

(b) days falling within the overseas part of any tax year that is a split year as respects the policy holder (if the policy holder is an individual).”

(10) In subsection (3), in the definition of “A”, for the words from “on which” to the end substitute “in the policy period that are foreign days, and”.