SCHEDULES

SCHEDULE 34Policies of life insurance etc: miscellaneous amendments

Part 1Group life policies

Exception of certain group life policies from Chapter 2 of Part 13

1

1

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

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;