Income Tax (Trading and Other Income) Act 2005 section 105

Pre-14th March 1984 policies: disregard of amounts deducted and repaid after tax relief by deduction from premiums abolished

Section 105 deals with the treatment of certain additional premiums on life insurance policies taken out before 14th March 1984, ensuring that specific amounts are excluded from gain calculations.

• Applies only to life insurance policies issued in respect of insurances made before 14th March 1984
• Any amount treated as an additional premium under section 72(9) of the Finance Act 1984 must be ignored
• These amounts are excluded when calculating the total allowable deductions for the policy under section 494(1)
• These amounts are also excluded from the definition of "allowable payment" used in periodic gain calculations under section 507(6)