Income Tax (Trading and Other Income) Act 2005

125 (1) This paragraph applies to a policy or contract if— U.K.

(a) any holder of the policy or contract on 17th March 1998 was a non-UK resident individual on that date,

(b) such a holder has become UK resident since that date, and

(c) the holder intended, on the date of the holder's arrival in the United Kingdom by virtue of which the holder became UK resident,—

(i) to become permanently UK resident, or

(ii) to stay in the United Kingdom for at least two years.

(2) The policy or contract meets condition C in the second selection condition if it has been varied as described in that condition before the later of—

(a) the end of the first insurance year in relation to the policy or contract beginning on or after 6th April 1999, and

(b) the end of the first insurance year in relation to the policy or contract beginning on or after the date mentioned in sub-paragraph (1)(c).

(3) No gain is treated as arising from the policy or contract under section 525 in relation to any insurance year which ends—

(a) on or after the date since 17th March 1998 on which the holder of the policy or contract first became UK resident, and

(b) before the insurance year in which the variation was made.