Income Tax (Trading and Other Income) Act 2005 section 115

Pre-9th April 2003 policy or contract: loans to trustees

Section 115 deals with how the rules on part surrenders and loans under section 501 apply to older life insurance policies, life annuity contracts, and capital redemption policies that were taken out before 9th April 2003, and restricts the scope of those rules where loans were also made before that date.

• Section 501 (part surrenders and loans) applies to life insurance policies, life annuity contracts, and capital redemption policies made before 9th April 2003
• Where a loan was made before 9th April 2003, the provisions extending section 501 to loans made to trustees are switched off
• Specifically, the subsections that bring trustees within scope — subsections (1)(b) and (3) — are removed for pre-9th April 2003 loans
• References to "trustees" and "trustees'" in subsection (5)(b) are also removed for those earlier loans