Income Tax (Trading and Other Income) Act 2005 section 543

Issue time of qualifying policy replacing foreign policy

Section 543 deals with the deemed issue date of a new qualifying policy that replaces an older policy originally issued by a non-UK resident insurance company.

• Applies where a policy issued by a non-UK resident company is replaced by a policy not issued by such a company, and the new policy is a qualifying policy
• The new policy is treated as having been issued on the same date as the original policy for the purposes of calculating chargeable event gains under sections 484 to 497
• This effectively backdates the start of the new policy to the original insurance date, preserving the timeline for tax purposes
• References in Schedule 2 (transitional provisions and savings) to the time an insurance was made must also be read in line with this backdating rule