Section 532: Relief for policies and contracts with European Economic Area insurers
2094.This section and the following section are based on sections 547 and 553 of ICTA. This section sets out when the income tax allowance provided by section 530 may be available for a gain on a foreign policy or contract, despite the exception in section 531. It applies where:
a claim is made under this section;
the insurer conditions (conditions A and B) are satisfied; and
reinsurance of a particular type (see the definition of “excluded reinsurance contract” in subsection (5)) has not been made in respect of the policy or contract (condition C).
2095.In relation to “policies”, the section makes clear that the relief provided extends to foreign capital redemption policies as well as to life insurance policies.
2096.Subsection (1) sets out that a claim under this section must simply be made, rather than made to the Inland Revenue, or (as in the source legislation) to the Board of Inland Revenue. See Change 149 in Annex 1.
2097.The definition of “policy period” in subsection (5) excludes any period when the policy or contract has already been subject to UK tax on the underlying investment profit.
