Part 4Savings and investment income
Chapter 9Gains from contracts for life insurance etc.
Reductions from gains
C1528Reduction in amount charged: non-UK resident policy holders
1
The gain from a foreign policy of life insurance or foreign capital redemption policy is reduced for the purposes of this Chapter if the policy holder was not UK resident throughout the policy period.
2
The amount of the reduction is the appropriate fraction of the gain.
3
The appropriate fraction is—
where—
A is the number of days on which the policy holder was not UK resident in the policy period, and
B is the number of days in that period.
4
In this section and section 529 (exceptions from this section), “the policy period” means the period for which the policy has run before the chargeable event occurs.
5
If the gain is from a policy of life insurance which is a new policy in relation to another policy, for the purposes of subsection (4) the new policy is taken to have run—
a
from the issue of the other policy, or
b
if it also was a new policy in relation to an earlier policy, from the issue of the earlier policy,
and so on.
6
In subsection (5) “new policy” has the meaning given in paragraph 17 of Schedule 15 to ICTA.
7
This section is subject to section 529.