Part 6Relationships treated as loan relationships etc
Chapter 11Investment life insurance contracts
Investment life assurance contracts treated as creditor relationships
562Contract to be loan relationship
1
If a relevant company is a party to an investment life insurance contract, for the purposes of Part 5 (loan relationships) the contract is, in relation to the company, a creditor relationship of the company.
2
Subsection (1) is subject to subsection (4).
3
Subsection (4) applies if—
a
the amount or value of a lump sum payable under an investment life contract by reason of death or the onset of critical illness, exceeds
b
the surrender value of the contract immediately before the time when the lump sum becomes payable.
4
If this subsection applies, that excess is not to be brought into account as a credit under Part 5 representing a profit from a related transaction arising as a result of the lump sum becoming payable.