1898.This section is based on sections 553 and 553A of ICTA. “Qualifying policy” is defined in section 832(1) of ICTA as “a policy of insurance which is a qualifying policy for the purposes of Chapter 1 of Part 7 [of ICTA]”. That is, it is in effect a policy meeting the conditions set out in Schedule 15 to ICTA.
1899.Subsection (4) takes away qualifying policy status from a policy issued by a non-UK resident insurer once it ceases to meet one of the conditions in paragraph 24(3) of Schedule 15 to ICTA (by virtue of which it was a qualifying policy). Broadly, the conditions in that paragraph are met when the policy forms part of business done through the insurer’s UK permanent establishment.
1900.Subsection (5) denies qualifying policy status to a policy which is part of the overseas life assurance business of the insurer, that is, a policy taken out by a non-UK resident policy holder with an insurer operating in the United Kingdom. The subsection applies only in relation to the chargeable event in question.