Income Tax (Trading and Other Income) Act 2005 section 127

Meaning of "permitted property"

Section 127 defines what counts as "permitted property" in relation to a life insurance policy or contract, including which types of investments qualify and the conditions under which certain unlisted shares lose their permitted status.

• Permitted property includes assets falling within the property categories listed in section 520(2), such as authorised unit trusts and certain other standard investment vehicles.
• Shares or securities listed on a recognised stock exchange are permitted property.
• Shares or securities dealt in on the Unlisted Securities Market or the Alternative Investment Market may qualify, but only subject to two concentration limits.
• Unlisted or AIM shares lose permitted status if they represent more than 10% of the company's issued share capital or if the amount invested in them exceeds 10% of total premiums paid under the policy or contract.