Income Tax (Trading and Other Income) Act 2005 section 103

Certain pre-18th November 1983 policies not foreign policies of life insurance

Section 103 explains when a life insurance policy issued before 18th November 1983 is excluded from being treated as a "foreign policy of life insurance" for the purposes of the rules on gains from life insurance contracts, and the circumstances in which that exclusion is lost.

• A life insurance policy issued in respect of an insurance made before 18th November 1983 is not treated as a foreign policy of life insurance.
• The exclusion is lost if the policy is varied on or after 18th November 1983 to increase the benefits secured or to extend the term of the insurance.
• Where such a variation occurs, the policy is treated as if it had been issued in respect of an insurance made on or after 18th November 1983.
• Exercising an option within the policy to substitute another policy or to change any of its terms counts as a variation for these purposes.