Details of the new Part A1 of Schedule 15 to ICTA
4.Sub-paragraphs (1) to (3) of new paragraph A1(1) set out the events and conditions which will make a policy a non-qualifying policy after the issue, variation or assignment of a policy on or after 6 April 2013.
5.Sub-paragraph (4) of new paragraph A1 sets out exceptions to events that would normally make a policy non-qualifying.
6.Sub-paragraph (5) of new paragraph A1 defines the ‘relevant period’ in sub-paragraph (3)(b)(ii) of new paragraph A1.
7.Sub-paragraph (6) of new paragraph A1 sets out the circumstances where a variation to a policy can be ignored.
8.Sub-paragraph (7) of new paragraph A1 provides that where a policy first fulfils the requirements of paragraph 24(3) of Schedule 15 to ICTA on or after 6 April 2013 that policy is not excluded from the events listed in sub-paragraph (3) of new paragraph A1 that make a policy non-qualifying on breach of the annual premium limit.
9.Sub-paragraph (8) of new paragraph A1 provides that the assignment of a restricted relief qualifying policy and any subsequent event (including the issue of a new policy) relating to the assigned policy is not excluded from the events listed in sub-paragraph (3) of new paragraph A1 that make a policy non-qualifying on breach of the annual premium limit.
10.Sub-paragraph (9) of new paragraph A1 provides that a variation to a ‘pure protection’ policy is only excluded where the policy is a pure protection policy before and after the variation.
11.Sub-paragraph (10) of new paragraph A1 provides that paragraph A1 only applies after all of the other provisions of Schedule 15 to ICTA relating to whether a policy is a qualifying policy.
12.Sub-paragraphs (1) to (3) of new paragraph A2 set out the events and conditions which will make a policy a restricted relief qualifying policy.
13.Sub-paragraph (4) of new paragraph A2 sets out exceptions to events that would otherwise make a policy a restricted relief qualifying policy.
14.Sub-paragraph (5) of the new paragraph A2 defines the ‘relevant period’ for the purposes of sub-paragraph (3)(f)(ii) of new paragraph A2.
15.Sub-paragraph (6) of new paragraph A2 sets out the circumstances where a variation or premium limit event can be ignored.
16.Sub-paragraph (7) of new paragraph A2 sets out the relevant date for the purposes of sub-paragraph (6) of new paragraph A2.
17.Sub-paragraph (8) of new paragraph A2 provides that a variation to a ‘pure protection’ policy is only excluded where the policy is a pure protection policy before and after the premium limit event or variation.
18.Sub-paragraphs (9) and (10) of new paragraph A2 define a premium limit event if a protected policy is varied or an option under such a policy is exercised.
19.Sub-paragraph (11) of new paragraph A2 defines a ‘relevant period’ for the purposes of sub-paragraphs (9)(b)(ii) and (10)(b)(ii) of new paragraph A2.
20.Sub-paragraph (12) of new paragraph A2 sets out the circumstances where a variation of, or an exercise of an option under, a protected policy is excluded from being a premium limit event.
21.Sub-paragraph (13) of new paragraph A2 provides that references to paragraph 24 of Schedule 15 to ICTA in sub-paragraph (3)(g) of new paragraph A2 are references to the application of paragraph 24 before 6 April 2013.
22.Sub-paragraph (14) of new paragraph A2 provides that a qualifying policy which is a new policy, in relation to a restricted relief qualifying policy will itself be a restricted relief qualifying policy.
23.Sub-paragraph (15) of new paragraph A2 provides that once a policy is designated a restricted relief qualifying policy it will remain a restricted relief qualifying policy provided it continues to meet the other qualifying policy requirements in Schedule 15 to ICTA for a qualifying policy.
24.Sub-paragraph (16) of new paragraph A2 provides that new paragraph A1 will not apply to restricted relief qualifying policies for the purposes of new sub-paragraphs (14) or (15) except where a restricted relief qualifying policy is assigned.
25.Sub-paragraph (17) of new paragraph A2 advises that further provisions concerning restricted relief qualifying policies are contained in section 463A to 463D of the Income Tax (Trading and Other Income) Act 2005 (ITTOIA).
26.Sub-paragraph (1) of new paragraph A3 defines the circumstances in which an individual is in breach of the premium limit for relevant policies.
27.Sub-paragraph (2) of new paragraph A3 sets out exceptions to the calculation of premiums payable and defines ‘relevant period’ in relation to sub-paragraph (1) of new paragraph A3.
28.Sub-paragraph (3) of new paragraph A3 sets out the maximum amount that may be left out of account where payment of the first premium is met out of sums due to the beneficiary under previous policies in accordance with paragraphs 3(4)(c) and 15 of Schedule 15 to ICTA.
29.Sub-paragraph (4) of new paragraph A3 defines a ‘relevant policy’.
30.Sub-paragraph (5) of new paragraph A3 explains that a protected policy and a pure protection policy are not relevant policies.
31.Sub-paragraphs (6) and (7) of new paragraph A3 set out how to determine to which policies new paragraph A3 is to apply where two or more of the events listed in sub-paragraph (3) of new paragraph A1 and new sub-paragraph (3) of new paragraph A2 occur at the same time.
32.Sub-paragraph (8) of new paragraph A3 deals with the situation where two or more of the events referred to in sub-paragraph (6) of new paragraph A3 occur at the same time and the policies in question are issued by the same issuer with unique identifiers. It provides that, in such a case, the policies to which new paragraph A3 apply are determined by sub-paragraph (9) of new paragraph A3.
33.Sub-paragraphs (1) to (2) of new paragraph A4 define ‘protected policies’ for the purposes of new Part A1.
34.Sub-paragraphs (3) to (4) of new paragraph A4 set out when a policy is no longer to be regarded as a ‘protected policy’.
35.Sub-paragraphs (1) to (3) of new paragraph A5 define ‘beneficiary under a policy’ for the purposes of new Part A1.
36.Sub-paragraph (4) of new paragraph A5 provides that the definition of non-charitable trust for the purposes of this paragraph follows that set out in section 545(1) of ITTOIA. It also clarifies that trusts created by an individual include those trusts set out in section 465(6) of that Act.
37.Sub-paragraph (5) of new paragraph A5 provides that an individual is a beneficiary under a policy where the rights, or any share in the rights, of a policy are held by someone else as security for a debt of that individual and the rights, or share in the rights, are not beneficially owned by any individual.
38.Sub-paragraph (1) of new paragraph A6 provides the definitions of a ‘new policy’, a variation to a policy, a ‘pure protection policy’ and a ‘relevant option’ in relation to a policy.
39.Sub-paragraph (2) of new paragraph A6 defines a ‘deceased beneficiary event’.
40.Sub-paragraph (3) of new paragraph A6 defines a ‘mortgage endowment assignment’.
41.Paragraph 3 of Schedule 9 inserts a new section at the beginning of Part 1 of Schedule 15 to ICTA entitled “Rules for qualifying policies”.
