Income Tax (Trading and Other Income) Act 2005 section 119

Pre-17th March 1998 contract or policy: conditions to be met for contract or policy not to be a personal portfolio bond

Section 119 sets out the conditions that must be satisfied for a life insurance policy or capital redemption contract entered into before 17th March 1998 to avoid being classified as a personal portfolio bond.

• A policy or contract must meet three tests to escape personal portfolio bond status under Chapter 9 of Part 4
• It must satisfy the date condition (paragraph 120) and the non-variation condition (paragraph 121)
• It must also satisfy either the first selection condition (paragraph 122) or the second selection condition (paragraph 123)
• All three conditions — date, non-variation, and one of the two selection conditions — must be met simultaneously