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)To calculate the total allowable deductions for a policy or contract for the purposes of section 491—
Step 1
Add together—
(a) the total amount of premiums paid under the policy or contract before the event, and
(b) if the event occurs at the end of the final insurance year (see section 499), the amount of any repayment or partial repayment of a loan treated under section 500(c) as a surrender of a part of the rights under the policy or contract.
Step 2
In the case of a contract for a life annuity under which any annuity payments have been made, reduce the result of step 1 by so much of those payments as is—
(a) exempt under section 717 (exemption for part of purchased life annuity payments), or
(b) determined to be the capital element in those payments under section 658 of ICTA.
(2)In the case of a capital redemption policy which has been assigned for money or money's worth before the event, the reference in paragraph (a) of step 1 in subsection (1) to the total amount of premiums paid under the policy or contract before the event is a reference to the total of—
(a)the amount or value of the consideration given for the last such assignment, and
(b)the total amount of premiums paid under the policy or contract after that assignment and before the event.
(3)References to the policy in paragraphs (a) and (b) of step 1 in subsection (1) and in subsection (2) include any related policy.
(4)Subsection (1) is subject to—
section 495 (disregard of certain amounts in calculating gains under section 491), and
section 496 (modification of this section: qualifying endowment policies held as security for company debts).