Income Tax (Trading and Other Income) Act 2005 section 116

Pre-9th April 2003 policy: excepted group life policies

Section 116 provides transitional rules for group life insurance policies issued before 9th April 2003, ensuring they can qualify as excepted group life policies under the new legislation without losing their previous compliant status.

• Policies issued before 9th April 2003 that were already benefiting from transitional compliance rules under Schedule 34 to FA 2003 are treated as having met the conditions for excepted group life policy status throughout the relevant compliance period
• Where two policies were already being treated as a single policy under the FA 2003 transitional rules before 6th April 2005, they continue to be treated as a single policy under the new ITTOIA 2005 provisions
• This single-policy treatment applies for the purposes of the rules on gains from life insurance contracts, the related transitional provisions, and the deemed compliance rules in this section
• Where two policies are treated as one, the compliance period is determined by reference to the earlier policy's insurance date, as provided by the original FA 2003 transitional rules

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