Income Tax (Trading and Other Income) Act 2005 section 541B

Section 541A: further definitions

Section 541B provides supplementary definitions used in section 541A concerning the treatment of rebated or reinvested commission on life insurance policies and similar contracts.

• "Commission" is defined broadly to include any passing of value to an intermediary or connected person that can reasonably be taken to represent a reward in respect of a policy or contract.
• Commission is "reinvested" when an entitlement to it is waived, causing an increase in the total value of a relevant person's policies or contracts; it is "rebated" when value passes from an intermediary or connected person to or for the benefit of a relevant person and can reasonably be linked to the commission.
• Where commission relates to more than one premium or is not attributable to specific premiums, it must be apportioned or attributed to premiums on a just and reasonable basis.
• A "relevant person" includes policyholders, beneficial owners of policy rights, trustees where rights are held on trust, and anyone connected with any of those individuals.