SCHEDULES

SCHEDULE 35 U.K. Gains on policies of life insurance etc: rate of tax

Method of charging gains from policies of life insurance etc to tax U.K.

2 (1) Section 547 of the Taxes Act 1988 is amended as follows. U.K.

(2) In subsection (5)(a) (individual to be treated as having paid income tax at the basic rate on a sum included in his income by virtue of subsection (1)(a)) for “the basic rate” substitute “ the lower rate ”.

(3) In subsection (9A)(a) (definition of “the appropriate rate” where charitable trustees are liable to income tax on a gain by virtue of subsection (9)) for “the basic rate for that year” substitute “ the lower rate ”.