Part 4Savings and investment income

Chapter 9Gains from contracts for life insurance etc.

When chargeable events occur: general

488Disregard of some events after alterations of life insurance policy terms

1

This section applies if—

a

the terms of a policy of life insurance are altered,

b

the alteration is not itself a chargeable event, and

c

the conditions specified in section 489 are met.

2

After the alteration a chargeable event is only treated as occurring in relation to the policy if one would have been treated as occurring had the alteration not occurred.

3

If the alteration results in the policy being regarded as replaced by another, this section and section 489 apply as if they were a single policy.