Finance Act 2003

1 (1) Section 539 of the Taxes Act 1988 (introductory) is amended as follows. U.K.

(2) In subsection (2) (policies and contracts to which the Chapter does not apply) at the end of paragraph (d) add “; or

(e) to any group life policy having as its sole object the provision, on the death or disability of any of the individuals insured under the policy, of a sum substantially the same as any amount then outstanding under a loan made by a credit union to that individual; or

(f) to any group life policy with respect to which the conditions in section 539A are satisfied (“an excepted group life policy”).”.

(3) In subsection (3) (defined expressions) insert each of the following definitions at the appropriate place—

• ““credit union” means a society registered as a credit union under the Industrial and Provident Societies Act 1965 or the Credit Unions (Northern Ireland) Order 1985;”;

““excepted group life policy” shall be construed in accordance with subsection (2)(f) above;”;

““group life policy” means a policy of life insurance whose terms provide—

(a) for the payment of benefits on the death of more than one individual; and

(b) for those benefits to be paid on the death of each of those individuals;”.