Income Tax (Trading and Other Income) Act 2005

Gains from contracts for life insurance etc: rights partially assigned U.K.

87 U.K. Section 505 (assignments involving co-ownership) does not have effect in relation to any transaction which—

(a) took place in relation to a policy or contract in an insurance year beginning on or before 5th April 2001, and

(b) would otherwise and by reason only of the application of that section fall to be taken into account as an assignment of a part of or a share in the rights conferred by the policy or contract in a calculation under—

(i) section 507 (periodic calculations in part surrender and assignment cases), or

(ii) section 511 (transaction-related calculations in part surrender and assignment cases).

88 (1) This paragraph applies if a calculation under section 507 or 511 in relation to a policy or contract requires account to be taken of any part of or share in the rights conferred by the policy or contract which has been assigned for money or money's worth in an insurance year beginning on or before 5th April 2001. U.K.

(2) Section 508 (the value of rights partially assigned) applies for the purposes of the valuation of each such part or share as if—

(a) in subsection (1) after “surrendered” (in both places where it occurs) there were inserted “ or assigned ”,

(b) in that subsection after “surrender” there were inserted “ or assignment ”, and

(c) subsection (4) were omitted.