Income Tax (Trading and Other Income) Act 2005 section 482

Excepted group life policies: conditions about persons intended to benefit

Section 482 sets out three conditions (A, B and C) that must be met for a group life policy to qualify as an "excepted group life policy" under section 480, focusing on who may benefit from the policy and ensuring the arrangement is not used for tax avoidance.

• Condition A requires that all sums and benefits under the policy are paid to, or applied for, individuals or charities who are beneficially entitled, either directly or through trustees acting in a fiduciary capacity.
• Condition B prevents an insured individual, or anyone connected with them, from receiving death benefits relating to another insured individual under the same group policy through a group membership right.
• Condition C requires that the main purpose, or one of the main purposes, of a person holding or being beneficially entitled under the policy must not be to secure a tax advantage for themselves or anyone else.
• "Tax advantage" takes its meaning from section 1139 of the Corporation Tax Act 2010, and "connected persons" is determined by the standard statutory test.