Part 4

Savings and investment income
Chapter 9

Gains from contracts for life insurance etc.

Person liable etc.

Person liable: individuals
465
1
An individual is liable for tax under this Chapter if the individual is UK resident for the tax year in which the gain arises and condition A, B or C is met.
1A
But if the tax year is a split year as respects the individual, the individual is not liable for tax under this Chapter in respect of gains arising in the overseas part of that year (subject to section 465B).
2
Condition A is that the individual beneficially owns the rights under the policy or contract in question.
3
Condition B is that those rights are held on non-charitable trusts which the individual created.
4
Condition C is that those rights are held as security for the individual's debt.
5
For the purposes of calculating the total income of an individual liable for tax under this Chapter, the amount charged is treated as income.
6
References in this Chapter to trusts which an individual created include references to trusts arising under any of the following provisions (and references to a settlor or to a person creating trusts are to be read accordingly)—
a
section 11 of the Married Women's Property Act 1882 (c. 75),
b
section 2 of the Married Women's Policies of Assurance (Scotland) Act 1880 (c. 26), and
c
section 4 of the Law Reform (Husband and Wife) Act (Northern Ireland) 1964 (c. 23 (N.I.)).
7
For the right of an individual to recover certain amounts from the trustees of non-charitable trusts, see section 538 (recovery of tax from trustees).
Pt. 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))
Pt. 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)
S. 465(1A) inserted (with effect in accordance with Sch. 45 para. 153(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 45 para. 84
S. 465(6) applied by 1988 c. 1, Sch. 15 Pt. A1 para. A5(4)(a) (as inserted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 9 para. 2)
Words in s. 465(1) substituted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 45 para. 150
S. 465(6) applied by 1988 c. 1, Sch. 15 Pt. 1 para. B2(4) (as inserted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 9 para. 3)
Pt. 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)