Income Tax (Trading and Other Income) Act 2005 section 481

Excepted group life policies: conditions about benefits

Section 481 sets out the four conditions (A to D) that a group life policy must satisfy in relation to benefits in order to qualify as an "excepted group life policy" under section 480.

• The policy must pay a capital benefit on the death of each insured individual who dies below a specified age of no more than 75, either in all circumstances or subject to the same exclusions for every life covered (Condition A)
• The method of calculating death benefits and any cap on those benefits must be the same for every death under the policy (Condition B)
• The surrender value on any given day must not exceed the time-apportioned share of premiums paid that relates to the remaining paid-up period, and if there is no such period, there must be no surrender value at all (Condition C)
• No sums or benefits may be paid or conferred under the policy other than the death benefits under Condition A or the surrender value permitted under Condition C (Condition D)