SCHEDULES

C1C2SCHEDULE 15 QUALIFYING POLICIES

Annotations:
Modifications etc. (not altering text)

PART III POLICIES ISSUED BY NON-RESIDENT COMPANIES

24

1

M1 This paragraph applies to a policy of life insurance—

a

which is issued in respect of an insurance made after 17th November 1983; and

b

which is so issued by a company resident outside the United Kingdom;

and in the following provisions of this paragraph such a policy is referred to as “a new non-resident policy” and the company by which it is issued is referred to as “the issuing company”.

F12

Notwithstanding anything in paragraph 21—

a

a new non-resident policy shall not be certified under sub-paragraph (1)(a) of that paragraph, and

b

a new non-resident policy which conforms with such a form as is mentioned in sub-paragraph (1)(b) of that paragraph shall not be a qualifying policy,

until such time as the conditions in either sub-paragraph (3) or sub-paragraph (4) below are fulfilled with respect to it.

F12

Subject to section 55(3) of the Finance Act 1995 (transitional provision for the certification of certain policies), a new non-resident policy that falls outside sub-paragraph (2A) below shall not be a qualifying policy until such time as the conditions in sub-paragraph (3) are fulfilled with respect to it.

2A

A policy falls outside this sub-paragraph unless, at the time immediately before F2the appointed date for the purposes of section 55 of the Finance Act 1995 (removal of certification requirements), it was a qualifying policy by virtue of sub-paragraphs (2)(b) and (4) of this paragraph, as they had effect in relation to that time.

3

The conditions F3first referred to in sub-paragraph (2) above are—

a

that the issuing company is lawfully carrying on in the United Kingdom life assurance business (as defined in section 431(2)); and

b

that the premiums under the policy are payable to a branch in the United Kingdom of the issuing company, being a branch through which the issuing company carries on its life assurance business; and

c

the premiums under the policy form part of those business receipts of the issuing company which arise through that branch.

4

F4The conditions secondly referred to in sub-paragraph (2) above are—

a

that the policy holder is resident in the United Kingdom; and

b

that the income of the issuing company from the investments of its life assurance fund is, by virtue of section 445, charged to corporation tax under Case III of Schedule D;

and expressions used in paragraph (b) above have the same meaning as in section 445(1).