Income Tax (Trading and Other Income) Act 2005 section 516

Meaning of "personal portfolio bond"

Section 516 defines what constitutes a "personal portfolio bond" for the purposes of the special tax charge that applies to gains from such bonds.

• A personal portfolio bond is a life insurance policy, life annuity contract, or capital redemption policy where benefits are linked to the value of, or income from, specific property or a property index (the "portfolio" element)
• The bond must also allow the policyholder, someone connected to them, or someone acting on their behalf to select the property or index to which benefits are linked (the "personal" element)
• It does not matter whether the relevant index or property is explicitly named in the policy or contract itself
• Where a policy or contract is held jointly by two or more persons, any one of them counts as the "holder" for the purposes of assessing whether the personal selection condition is met