Income Tax (Trading and Other Income) Act 2005 section 531

Pre-27th March 1974 contracts: disapplication of section 531(3)(c)

Section 531(3)(c) provides an exclusion for certain life annuity contracts from the gains charge under section 530, but paragraph 98 of Schedule 2 disapplies this exclusion for contracts made before 27th March 1974.

• Section 530 charges gains arising from certain life insurance contracts and related policies to income tax.
• Section 531(3)(c) excludes certain life annuity contracts from that charge.
• This exclusion does not apply where the contract was made before 27th March 1974.
• Contracts entered into before that date therefore remain within the scope of the section 530 gains charge, despite the general exclusion for life annuity contracts.