Income Tax (Trading and Other Income) Act 2005 section 463

Income charged

Section 463 establishes how gains from life insurance contracts and similar policies are charged to income tax, including when and how those gains are measured.

• Tax is charged on the amount of gains arising in the tax year, though in certain circumstances a gain may be charged in a later tax year than the one in which the chargeable event occurred
• Where two or more persons hold an interest in the same policy or contract, the gain is apportioned between them
• Detailed rules for calculating gains are set out across multiple sections of the Act, covering general calculation methods, periodic and transaction-related calculations, annual calculations, and reductions for amounts already taxed elsewhere
• The section derives from the former section 547 of the Income and Corporation Taxes Act 1988