Income Tax (Trading and Other Income) Act 2005 section 104

Certain pre-23rd February 1984 policies not foreign capital redemption policies

Section 104 provides that capital redemption policies issued under contracts made before 23rd February 1984 are excluded from being treated as foreign capital redemption policies.

• A capital redemption policy issued under a pre-23rd February 1984 contract cannot be classified as a foreign capital redemption policy.
• The definition of "foreign capital redemption policy" is found in section 476(3) of the Act, within the rules on gains from life insurance contracts and similar arrangements.
• The critical date is when the underlying contract was made, not when the policy itself may have been issued or varied.
• This exemption means that the special tax rules in Chapter 9 of Part 4 applying to foreign capital redemption policies do not apply to these older policies.