Income Tax (Trading and Other Income) Act 2005 section 461

Charge to tax under Chapter 9

Section 461 establishes the income tax charge on gains that are treated as arising from certain life insurance policies and related contracts.

• Income tax is charged on gains treated as arising from life insurance policies, life annuity contracts and capital redemption policies covered by Chapter 9
• The specific types of policies and contracts within scope are defined in sections 473 to 483, and include life insurance policies, life annuity contracts and capital redemption policies, but exclude certain categories such as credit union group life policies
• Provisions on tax treated as paid on gains and available reliefs are set out in sections 530 to 538, and exemptions may apply, for example for policies held within individual investment plans
• Where a company also has an interest in a policy or contract, section 544 explains how the Chapter applies alongside the corresponding corporation tax rules