Finance Act 2003

Section 547(1)(cc) and (d)(ia): exception for certain old policies and contracts U.K.

12 (1) Paragraph 7(1) of Schedule 14 to the Finance Act 1998 (c. 36) (exception for certain cases where the trust was created before 17th March 1998, the creator etc was an individual who died before that date and the insurance etc was made or effected before that date) has effect in relation to section 547(1)(cc) of the Taxes Act 1988 as it has effect in relation to section 547(1)(d) of that Act. U.K.

(2) Paragraph (d) of section 547(1) of the Taxes Act 1988 (trustees of a non-charitable trust) does not have effect by virtue of sub-paragraph (ia) of that paragraph in relation to the amount of a gain if the gain is treated as arising on the happening of a chargeable event in relation to a pre-commencement policy or contract.

(3) In this paragraph “pre-commencement policy or contract” means—

(a) any policy of life insurance issued in respect of an insurance made before 9th April 2003,

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

(c) any capital redemption policy where the contract was effected before that date,

but does not include any such policy or contract falling within sub-paragraph (4).

(4) A policy or contract falls within this sub-paragraph if, on or after 9th April 2003 (but before the happening of the chargeable event in question),—

(a) the policy or contract has been varied so as to increase the benefits secured or to extend the term of the insurance, annuity or capital redemption policy (any exercise of rights conferred by the policy being regarded for this purpose as a variation); or

(b) there has been an assignment (whether or not for money’s worth) of the rights, or a share in the rights, conferred by the policy or contract to trustees of a non-charitable trust, as defined in section 539(3) of the Taxes Act 1988.