Modifications etc. (not altering text)
C1Pt. 13 Ch. 2 restricted (with effect in accordance with s. 105(1) of the affecting Act) by Finance Act 1996 (c. 8), Sch. 13 para. 3(2) (with Sch. 13 para. 16)
C2Pt. 13 Ch. 2 applied (with modifications) (6.4.1999) by The Individual Savings Account Regulations 1998 (S.I. 1998/1870), regs. 35(7), 36(3)-(7) (as amended by The Individual Savings Account (Amendment) Regulations 1998 (S.I. 1998/3174), reg. 12)
C3Pt. 13 Ch. 2 applied (with modifications) (6.4.1999 with effect in accordance with reg. 1 of the affecting S.I.) by The Personal Portfolio Bonds (Tax) Regulations 1999 (S.I. 1999/1029), reg. 6(2)-(8) (as amended (6.4.2002) by The Personal Portfolio Bonds (Tax) (Amendment) Regulations 2002 (S.I. 2002/455), regs. 1, 2)
C4Amendment to earlier amending provision S.I. 1999/1029, reg. 6(2)-(8) (with effect in accordance with reg. 1 of the amending Regulation) by The Personal Portfolio Bonds (Tax) (Amendment) Regulations 2002 (S.I. 2002/455) reg. 2
(1)A policy of life insurance which, immediately before the happening of a chargeable event or a relevant event—
(a)is an overseas policy, but
(b)is not a new non-resident policy,
shall, in relation to that event, be treated for the purposes of this Chapter as if it were a new non-resident policy.
(2)A policy of life insurance which, immediately before the happening of a relevant event—
(a)is an overseas policy, and
(b)is a new non-resident policy,
shall, in relation to that event, be taken for the purposes of this Chapter not to be a qualifying policy.
(3)Where a chargeable event happens in relation to a new non-resident policy, section 553(7) shall not have effect in relation to the gain treated as arising in connection with the policy on the happening of the chargeable event.
(4)In this section—
“new non-resident policy” means a new non-resident policy as defined in paragraph 24 of Schedule 15 (and in subsections (2) and (3) above includes a policy treated as such by virtue of subsection (1) above);
“overseas policy” means a policy of life insurance which, by virtue of section 431D(1)(a), forms part of the overseas life assurance business of an insurance company or friendly society;
“relevant event”, in relation to a policy of life insurance, means an event which would be a chargeable event in relation to that policy if the policy were assumed not to be a qualifying policy.
(5)This section applies in relation to chargeable events and relevant events happening on or after 17th March 1998 in relation to policies of life insurance issued in respect of insurances made on or after that date.
(6)A policy of life insurance issued in respect of an insurance made before 17th March 1998 shall be treated for the purposes of this section as issued in respect of one made on or after that date if it is varied on or after that date so as to increase the benefits secured or to extend the term of the insurance; and any exercise of rights conferred by the policy shall be regarded for this purpose as a variation.]
Textual Amendments
F1S. 553A inserted (31.7.1998) by Finance Act 1998 (c. 36), s. 88(1)