Part 4Savings and investment income

Chapter 9Gains from contracts for life insurance etc.

Part surrenders and assignments: periodic calculations and excess events

499Meaning of “insurance year” and “final insurance year”

1

In this Chapter “insurance year”, in relation to a policy or contract, means the 12 months beginning with—

a

the date on which the insurance or contract is made, or

b

any anniversary of that date.

2

Subsection (1) is subject to subsections (3) and (5).

3

An event referred to in section 484(1)(a)(i) or (iii) or (b) to (e) (surrender of all rights, final participation in profits, death, maturity, or taking a capital sum as a complete alternative to annuity payments) is treated as ending the insurance year in which it occurs.

4

In this Chapter “final insurance year” means an insurance year that is ended as a result of subsection (3).

5

But if, as a result of subsection (3), an insurance year would begin and end in the same tax year—

a

that insurance year and the previous insurance year are treated as one insurance year, and

b

final insurance year” needs to be read accordingly.