85(1)This paragraph modifies the application of—U.K.
(a)section 474(4) (foreign policies of life insurance which are not qualifying policies),
(b)section 531(6) (foreign policies of life insurance to which section 530 applies), and
(c)section 532 (relief for policies and contracts with European Area Insurers),
in relation to a policy of life insurance which meets conditions A and B.
(2)Condition A is that the policy is a foreign policy of life insurance by virtue of paragraph (a) of the definition of that term in section 476(3).
(3)Condition B is that the income of the company which issued the policy was charged to corporation tax under section 445 of ICTA for an accounting period ending on or after the day on which the policy was issued.
(4)The policy is treated as having been a qualifying policy for any part of the chargeable period when—
(a)it would have been treated as a qualifying policy apart from section 474(4), and
(b)the conditions in either sub-paragraph (3) or sub-paragraph (4) of paragraph 24 of Schedule 15 to ICTA (as it then had effect) were met.
(5)The policy meets condition B in section 531(6) if—
(a)the conditions in either sub-paragraph (3) or sub-paragraph (4) of paragraph 24 of Schedule 15 to ICTA (as it then had effect) were met throughout the chargeable period, and
(b)the conditions in sub-paragraph (3) of that paragraph are met throughout the period—
(i)beginning immediately after the end of the chargeable period, and
(ii)ending with the date on which the gains mentioned in section 531(1) arise.
(6)Despite the definition of “policy period” in section 532(5), for the purposes of determining whether conditions A to C in that section have been met in relation to the policy or contract throughout the policy period, that period is to be taken not to include—
(a)any part of the chargeable period when the conditions in either sub-paragraph (3) or sub-paragraph (4) of paragraph 24 of Schedule 15 to ICTA (as it then had effect) were met, and
(b)any subsequent period when the conditions in sub-paragraph (3) of that paragraph are met.
(7)In this paragraph “the chargeable period” means the period—
(a)beginning with the date on which the policy was issued, and
(b)ending with the last day of the last accounting period for which the company which issued the policy was liable to tax under section 445 of ICTA.