Part 4Savings and investment income
Chapter 9Gains from contracts for life insurance etc.
Part surrenders and assignments: periodic calculations and excess events
503Exception from section 501 for certain loans under qualifying policies
(1)
Section 501 does not apply to a loan made by the body issuing a qualifying policy if either or both of conditions A and B are met.
(2)
Condition A is that interest is payable on the loan at a commercial rate.
(3)
Condition B is that the loan was made—
(a)
before 6th April 2000,
(b)
to a full-time employee of the body issuing the policy, and
(c)
to assist the employee in purchasing or improving a dwelling to be used as the employee's only or main residence.