Section 531 | Exceptions to section 530

(1)Section 530 does not apply to gains from the kinds of policies and contracts specified in subsection (3), except for the purposes of calculating relief under section 535 (top slicing relief).

(2)Subsection (1) is subject to—

section 532 (relief for policies and contracts with European Economic Area insurers), and

section 534 (regulations providing for relief in other cases where foreign tax chargeable).

(3)The policies and contracts are—

(a)a policy of life insurance issued or a contract for a life annuity made by a friendly society in the course of exempt BLAGAB or eligible PHI business ,

(b)a foreign policy of life insurance that does not meet conditions A and B,

(c)a contract for a life annuity (other than one within paragraph (a)) which has at any time not formed part of any insurance company's or friendly society's basic life assurance and general annuity business the income and gains of which are subject to corporation tax, and

(d)a foreign capital redemption policy.

(4)In this section and section 532—

“basic life assurance and general annuity business” has the same meaning as in Part 2 of FA 2012 (see sections 57 and 67(5)) , and

“exempt BLAGAB or eligible PHI business” has the same meaning as in Part 3 of FA 2012 (see sections 154 and 155).

(5)Condition A is that the policy falls within paragraph (a) of the definition of “foreign policy of life insurance” in section 476(3) (policy issued by a non-UK resident company).

(6)Condition B is that the conditions in paragraph 24(3) of Schedule 15 to ICTA (conditions that are required to be met for certain policies issued by non-UK resident companies to be qualifying policies) are met throughout the period between—

(a)the date on which the policy was issued, and

(b)the date on which the gain arises.