Method of charging gains from policies of life insurance etc to tax
2(1)Section 547 of the Taxes Act 1988 is amended as follows.
(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”.