Section 499 | Meaning of “insurance year” and “final insurance year”

(1)In this Chapter “insurance year”, in relation to a policy or contract, means the 12 months beginning with—

(a)the date on which the insurance or contract is made, or

(b)any anniversary of that date.

(2)Subsection (1) is subject to subsections (3) and (5).

(3)An event referred to in section 484(1)(a)(i) or (iii) or (b) to (e) (surrender of all rights, final participation in profits, death, maturity, or taking a capital sum as a complete alternative to annuity payments) is treated as ending the insurance year in which it occurs.

(4)In this Chapter “final insurance year” means an insurance year that is ended as a result of subsection (3).

(5)But if, as a result of subsection (3), an insurance year would begin and end in the same tax year—

(a)that insurance year and the previous insurance year are treated as one insurance year, and

(b)“final insurance year” needs to be read accordingly.