102(1)Chapter 9 of Part 4 does not apply to a pre-1982 assigned policy or contract unless on a date after 23rd August 1982 it has met condition A, B or C.U.K.
(2)In sub-paragraph (1) “pre-1982 assigned policy or contract” means—
(a)a policy of life insurance issued in respect of an insurance made before 26th June 1982, or
(b)a contract for a life annuity made before that date,
the rights under which were assigned for money or money's worth before that date and are not held by the original beneficial owner.
(3)Condition A is that the rights under the policy or contract are again assigned for money or money's worth.
(4)Condition B is that a payment is made under the policy or contract by way of premium.
(5)Condition C is that a sum is lent—
(a)by, or by arrangement with, the body issuing the policy or the body with which the contract was made, and
(b)to or at the direction of an individual falling within sub-paragraph (6).
(6)An individual falls within this sub-paragraph at any time if—
(a)were a gain to arise in respect of the policy or contract at that time the individual—
(i)would be liable for tax in respect of it as a result of section 465 (person liable: individuals), or
(ii)would be so liable apart from the requirement in section 465(1) that the individual must be UK resident in the tax year in which the gain arises, or
(b)at that time the rights under the policy or contract are held on charitable trusts created by the individual.
(7)In the case of a qualifying policy, condition C is not met if—
(a)interest is payable on the loan at a commercial rate, or
(b)the loan is to a full-time employee of the body to assist the employee in purchasing or improving a dwelling to be used as the employee's only or main residence.
(8)In the case of a policy issued in respect of an insurance made before 27th March 1974 or a contract made before that date, this paragraph applies as if sub-paragraph (1) did not refer to condition C.
(9)A loan which causes condition C to be met is treated for the purposes of sections 500(c) and 501 (loans treated as part surrenders) as having been made at a time when Chapter 9 of Part 4 does apply to gains on the policy or contract.