Corporation Tax Act 2009 section 561

Meaning of "investment life insurance contract"

Section 561 defines what counts as an "investment life insurance contract" for the purposes of this chapter, and identifies the types of contract that are excluded from the definition.

• An investment life insurance contract is a life insurance policy with a surrender value, a purchased life annuity, or a capital redemption policy — provided it is not a relevant excluded contract
• Excluded contracts are those held under or purchased with assets of a registered pension scheme, and policies issued in respect of insurance taken out before 14 March 1989
• A pre-14 March 1989 policy loses its exclusion if it is varied on or after that date to increase benefits or extend the insurance term
• Any exercise of rights under a policy counts as a variation for the purpose of determining whether it has lost its pre-14 March 1989 excluded status