Modifications etc. (not altering text)
C1Pt. 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))
C2Pt. 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)
C3Pt. 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)
(1)This section sets out how to determine the extent to which premiums payable under policy X during the policy X period are allowable premiums for the purposes of section 463A(3).
(2)A premium payable under policy X is allowable if it is payable before the restricted relief date.
(3)In this section “the restricted relief date” means—
(a)6 April 2013, or
(b)if later, the date on which policy X became a restricted relief qualifying policy.
(4)Premiums payable under policy X in a relevant premium period are allowable so far as they do not exceed in total the premium limit for the period.
(5)In subsection (4) “relevant premium period” means—
(a)any period of one year which—
(i)begins with a relevant date, and
(ii)ends in the policy X period, and
(b)if it is not covered by paragraph (a), the period which—
(i)begins with the last relevant date to fall within the policy X period, and
(ii)ends at the end of the policy X period.
(6)In subsection (5) “relevant date” means—
(a)the restricted relief date, or
(b)any anniversary of the restricted relief date.
(7)For the purposes of subsection (4) “the premium limit” for a relevant premium period is determined in accordance with subsections (8) to (10).
(8)Determine the premiums payable in the relevant premium period under policies related to policy X.
(9)If the total of those premiums is £3,600 or more, the premium limit is nil (and, accordingly, no premiums payable under policy X in the relevant premium period are allowable).
(10)If the total of those premiums is less than £3,600, the premium limit is the difference between that total and £3,600.
(11)Subsection (4) does not apply if, at the time policy X became a restricted relief qualifying policy, any policy related to policy X was itself a restricted relief qualifying policy.
(12)For the purposes of this section a policy is “related” to policy X if it met the following requirements at the time policy X became a restricted relief qualifying policy—
(a)the policy is a qualifying policy under which the individual is a beneficiary (as determined in accordance with paragraph A5 of Schedule 15 to ICTA);
(b)the policy is neither a protected policy nor a pure protection policy.
(13)In subsection (12)(b)—
“protected policy” is to be read in accordance with paragraph A4 of Schedule 15 to ICTA, and
“pure protection policy” has the meaning given by paragraph A6(1)(c) of that Schedule.
(14)A policy which is a new policy in relation to a policy “related” to policy X (whether by virtue of subsection (12) or this subsection) is also “related” to policy X if it meets the requirements of subsection (12)(a) and (b) when issued.
(15)A policy ceases to be “related” to policy X if it ceases to meet those requirements.
(16)If policy X is a restricted relief qualifying policy as provided for by paragraph A2(14) of Schedule 15 to ICTA, references in this section to policy X becoming a restricted relief qualifying policy are to be read as references to the policy determined under subsection (17) becoming a restricted relief qualifying policy.
(17)The policy is—
(a)the policy (“policy Y”) in relation to which policy X was the new policy, or
(b)if policy Y was also a restricted relief qualifying policy as provided for by paragraph A2(14) of Schedule 15 to ICTA, the policy in relation to which policy Y was the new policy,
and so on.
(18)The following subsections apply for the purposes of this section if—
(a)a premium (“premium A”) is payable under policy X on a day (“day A”) which is on or after 21 March 2012 but before 6 April 2013, and
(b)the next premium payable under policy X is payable on a day (“day B”) which is—
(i)on or after 6 April 2013, and
(ii)more than one month after day A.
(19)Premium A is to be treated as if, instead of being one premium payable on day A, it were a series of premiums payable at monthly intervals with the first premium in the series payable on day A.
(20)The number of premiums in the series is equal to the number of complete months falling within the period beginning with day A and ending with day B.
(21)The amount of each premium in the series is the amount of premium A divided by the number of premiums in the series.]
Textual Amendments
F1Ss. 463A-463E inserted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 9 para. 8