Income Tax (Trading and Other Income) Act 2005 section 483

Exclusion of credit union group life policies

Section 483 excludes certain group life insurance policies taken out by credit unions from the income tax rules that apply to life insurance policies under this chapter.

• Group life policies held by credit unions are exempt from the income tax rules in this chapter, provided they meet a strict qualifying condition
• The policy must have the sole purpose of paying out a sum roughly equal to the outstanding loan balance owed by the insured member to the credit union, triggered by that member's death or disability
• The credit union must be registered under the Co-operative and Community Benefit Societies Act 2014 or the Credit Unions (Northern Ireland) Order 1985
• If the policy covers anything beyond repaying the member's outstanding credit union loan, it will not qualify for this exclusion