PART VII GENERAL PROVISIONS RELATING TO TAXATION OF INCOME OF INDIVIDUALS
CHAPTER I PERSONAL RELIEFS
The reliefs
271 Deemed surrender in cases of certain loans.
M11
Where—
a
under section 547 a gain arising in connection with a policy F1. . . would be treated as forming part of an individual’s total income; and
b
the policy was issued in respect of an insurance made after 26th March 1974 F2. . .; and
c
then, subject to subsection (2) below, the same results shall follow under sections 268 to 270 as if at the time the sum was lent there had been a surrender of part of the rights conferred by the policy F1. . . and the sum had been paid as consideration for the surrender (and if the policy is a qualifying policy, whether or not the premiums under it are eligible for relief under section 266, those results shall follow under section 269, whether or not a gain would be treated as arising on the surrender).
2
Subsection (1) above does not apply—
a
in relation to a policy if—
i
it is a qualifying policy; and
ii
either interest at a commercial rate is payable on the sum lent or the sum is lent to a full-time employee of the body issuing the policy for the purpose of assisting him in the purchase or improvement of a dwelling used or to be used as his only or main residence; F4. . .
F4b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .