Income Tax (Trading and Other Income) Act 2005 section 519

The index selection conditions

Section 519 sets out the conditions that must be met for an index to qualify as one that policyholders can select, ensuring that the opportunity to choose an index is not narrowly restricted to a small or connected group of people.

• An index meets the general selection condition if the opportunity to select it is available to all policyholders of the insurance company, or to persons acting on their behalf.
• An index meets the class selection condition if the opportunity to select it is available to a particular class or classes of policyholders, or to persons acting on their behalf.
• A group of policyholders only counts as a valid "class" if membership is not limited to connected persons, the insurer determines membership, and the opportunity is clearly publicised in marketing material as available to anyone who qualifies.
• "Policy holder" includes a holder of a life annuity contract, and "holder" has the meaning given by section 516(5).

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