[F1463ETransitional protection for policies issued in respect of insurances made on or after 21 March 2012 but before 6 April 2013U.K.
(1)This section applies if—
(a)a policy (“policy Z”) is issued,
(b)the issue of policy Z is an event falling within paragraph A2(3) of Schedule 15 to ICTA by virtue of paragraph (e),
(c)after its issue, policy Z is a qualifying policy but not a restricted relief qualifying policy,
(d)policy Z is varied on or after 6 April 2013 and the variation is an event falling within paragraph A1(3) of Schedule 15,
(e)after the variation, policy Z is not a qualifying policy by virtue of paragraph A1(2) of that Schedule,
(f)in relation to an event occurring after the variation, an individual is liable for tax charged under this Chapter on a gain from policy Z, and
(g)but for the application of paragraph A1 of Schedule 15 in relation to policy Z, the individual would not have been liable because of section 485.
(2)The gain on which the tax is charged in the case of the individual is reduced by the following amount—
where—
G is the amount of the gain (apart from this subsection),
TPV is the total amount of premiums payable under policy Z before the variation, and
TP is the total amount of premiums payable under policy Z before the chargeable event.
(3)If section 528 also applies in the case of the individual in relation to the gain, subsection (2) is to be applied to the gain before section 528 and, accordingly, the reduction to be made under section 528 is to be determined by reference to the gain as reduced by subsection (2).
(4)Section 463A(10) to (12) applies for the purposes of subsection (2).]
Textual Amendments
F1Ss. 463A-463E inserted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 9 para. 8