Income Tax (Trading and Other Income) Act 2005 section 101

Pre-25th March 1982 replacement policies: disapplication of section 542

Section 101 provides that the rules on replacement qualifying policies do not apply where the replacement policy came into existence before 25th March 1982.

• Section 542 sets out rules that apply when a qualifying life insurance policy is replaced by another policy.
• These replacement policy rules are disapplied if the replacement policy came into existence before 25th March 1982.
• This means older replacement policies are not subject to the tax charges that would otherwise arise under section 542.
• The cut-off date of 25th March 1982 preserves the tax treatment that applied to policies replaced before that date.