Part VI Companies, oil, insurance etc.
Chapter III Insurance
F4204Policies of insurance and non-deferred annuities
1
A gain accruing on a disposal of, or of an interest in, the rights conferred by a non-life policy of insurance is not a chargeable gain (but see subsection (2)).
2
If a disposal is of, or of an interest in, the rights conferred by a non-life policy of insurance of the risk of—
a
any kind of damage to assets, or
b
the loss or depreciation of assets,
the exemption under subsection (1) does not apply so far as those rights relate to chargeable assets.
3
For this purpose “chargeable assets” means assets on the disposal of which a chargeable gain—
a
may accrue, or
b
might have accrued.
4
Nothing in subsections (1) and (2) prevents sums received under a non-life policy of insurance of the risk of—
a
any kind of damage to assets, or
b
the loss or depreciation of assets,
from being sums derived from the assets for the purposes of this Act (and, in particular, for the purposes of section 22).
5
A gain accruing on a disposal of, or of an interest in, the rights conferred by a contract for an annuity is not a chargeable gain if the annuity is—
a
a non-deferred annuity, or
b
an annuity granted (or deemed to be granted) under the Government Annuities Act 1929.
6
If any investments or other assets are, in accordance with a policy issued in the course of life assurance business carried on by an insurance company, transferred to the policy holder—
a
the policy holder's acquisition of the assets, and
b
the disposal of the assets to the policy holder,
are to be taken for the purposes of this Act to be for a consideration equal to the market value of the assets.
7
In this section “interest”, in relation to any rights, means an interest as a co-owner of the rights.
8
It does not matter—
a
whether the rights are owned jointly or in common, or
b
whether or not the interests of the co-owners are equal.
9
In this section a “non-deferred annuity” means an annuity—
a
which is not granted under a contract for a deferred annuity, and
b
which is granted in the ordinary course of a business of granting annuities on the life of any person,
and it does not matter whether the annuity includes instalments of capital.
10
In this section a “non-life policy of insurance” means—
a
b
any F3... policy of insurance which is not a policy of insurance on the life of any person.