Corporation Tax Act 2009 section 104

Income treated as bearing income tax

Section 104 sets out the deemed income tax rates that apply to gains from life insurance contracts included in an estate's aggregate income, depending on when the triggering event occurred.

• Gains from life insurance contracts arising from events before 6 April 2004 are treated as bearing income tax at the basic rate applicable at the time of the event.
• Gains arising from events between 6 April 2004 and 5 April 2007 are treated as bearing income tax at the lower rate applicable at the time of the event.
• Gains arising from events between 6 April 2007 and 5 April 2008 are treated as bearing income tax at the savings rate applicable at the time of the event.
• Where the lower rate or savings rate applies, the rules on identifying the income from which basic amounts are treated as paid are modified to include those rates as a separate category of income.