Corporation Tax Act 2009 section 566

Introduction

Section 566 introduces transitional provisions for investment life insurance contracts that were already in existence before the new tax rules took effect from 1 April 2008.

• Sections 566 to 569 apply where a company held an investment life insurance contract immediately before the start of its first accounting period beginning on or after 1 April 2008.
• The "deemed surrender" refers to the notional surrender of all rights under the contract that the company was treated as having made under the old legislation (Schedule 13 to Finance Act 2008).
• The "first accounting period" means the company's first accounting period beginning on or after 1 April 2008, and the "old contract" means the pre-existing investment life insurance contract.
• Although these are transitional rules, they are included in the main body of the Act rather than in schedules because the majority of contracts will be affected for some time.