Part 4Savings and investment income
C1C3C2Chapter 9Gains from contracts for life insurance etc.
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)
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)
Calculating gains: general
495Disregard of certain amounts in calculating gains under section 491
1
A retained replacement policy premium is ignored in calculating—
a
the total benefit value of a policy under section 492(1), or
b
the total allowable deductions for a policy under section 494(1).
2
In subsection (1) “retained replacement policy premium” means a sum which—
a
has been payable under a policy which is one of two or more policies treated as a single policy under section 542(1) (qualifying policies and policies replacing them), and
b
is such a sum as is mentioned in section 542(4) and meets the condition in that section.
3
For the purposes of section 492(1)(b) and (c) (total benefit value: capital sums and benefits paid or conferred before the event in question), any sum paid or benefit conferred under a policy is ignored if it is attributable to a person's disability.
4
For the purposes of section 492(1)(f) (total benefit value: assignments), a share assigned before the event is ignored if—
a
it was assigned in an insurance year (see section 499) that began on or after 6th April 2001, and
b
it was not assigned for money or money's worth.
5
The reference to the policy in subsection (3) includes any related policy.
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))