Part 4Savings and investment income

Chapter 9Gains from contracts for life insurance etc.

Policies and contracts to which Chapter 9 applies

478Exclusion of mortgage repayment policies

(1)

This Chapter does not apply to a mortgage repayment policy.

(2)

In this section “mortgage repayment policy” means a policy of life insurance with the sole object of providing, on an individual's death or disability, a sum substantially the same as any amount then outstanding under a repayment mortgage—

(a)

of the individual's residence, or

(b)

of any premises occupied by the individual for the purposes of a business.

(3)

In this section “repayment mortgage” means a mortgage securing a principal amount which is repayable by instalments payable annually or at shorter regular intervals.