Income Tax (Trading and Other Income) Act 2005 section 486

Exclusion of maturity of capital redemption policies in certain circumstances

Section 486 provides an exclusion from the charge on gains from capital redemption policies when the policy matures in certain specified circumstances.

• Capital redemption policies may be excluded from the usual income tax charge on maturity if certain conditions are met.
• The exclusion applies where the proceeds from the maturing policy would otherwise be treated as annual payments chargeable to income tax.
• The relevant income tax charges are set out across several specific chapters of the Income Tax (Trading and Other Income) Act 2005, which replaced the former Schedule D charge for income tax purposes.
• For corporation tax purposes, the charge on such income continues to operate under the older Schedule D framework.