(1)An individual is liable for tax under this Chapter if the individual is UK resident in the tax year in which the gain arises and condition A, B or C is met.
(2)Condition A is that the individual beneficially owns the rights under the policy or contract in question.
(3)Condition B is that those rights are held on non-charitable trusts which the individual created.
(4)Condition C is that those rights are held as security for the individual's debt.
(5)For the purposes of calculating the total income of an individual liable for tax under this Chapter, the amount charged is treated as income.
(6)References in this Chapter to trusts which an individual created include references to trusts arising under any of the following provisions (and references to a settlor or to a person creating trusts are to be read accordingly)—
(a)section 11 of the Married Women's Property Act 1882 (c. 75),
(b)section 2 of the Married Women's Policies of Assurance (Scotland) Act 1880 (c. 26), and
(c)section 4 of the Law Reform (Husband and Wife) Act (Northern Ireland) 1964 (c. 23 (N.I.)).
(7)For the right of an individual to recover certain amounts from the trustees of non-charitable trusts, see section 538 (recovery of tax from trustees).