Section 501 | Part surrenders: loans

(1)This section applies to a loan (and so it falls within section 500(c)) if it is made by the insurer under a policy or contract—

(a)to an individual falling within subsection (2), or^F1

(b)to trustees falling within subsection (3), or

(c)Repealed^F2

(2)An individual falls within this subsection at any time if, were a gain to arise in respect of the policy or contract at that time, the individual would be liable for tax under this Chapter as a result of section 465 (person liable: individuals).

(3)Trustees fall within this subsection at any time if, were a gain to arise in respect of the policy or contract at that time, they would be liable for tax under this Chapter as a result of section 467 (person liable: UK resident trustees).

(4)Repealed^F3

(5)For the purposes of subsection (1), a loan—

(a)is treated as made by an insurer if it is made by arrangement with it, and

(b)is treated as made to an individual, trustees or a company if it is made at the individual's, trustees' or company's direction.

(6)In this section “insurer”, in relation to a policy or contract, means the body issuing the policy or with which the contract is made.

(7)This section is subject to—

(a)section 502 (exception for loans to buy life annuities), and

(b)section 503 (exception for certain loans under qualifying policies).