Finance Bill

House of Lords

Session 2013 - 14
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Finance Bill

Finance Bill
Schedule 9 — Qualifying insurance policies
Part 2 — Restricted relief qualifying policies
222

(18)
The following subsections apply for the purposes of this section if—
(a)
a premium (“premium A”) is payable under policy X on a day
(“day A”) which is on or after 21 March 2012 but before 6
April 2013, and
(b)
the next premium payable under policy X is payable on a day
5
(“day B”) which is—
(i)
on or after 6 April 2013, and
(ii)
more than one month after day A.
(19)
Premium A is to be treated as if, instead of being one premium
payable on day A, it were a series of premiums payable at monthly
10
intervals with the first premium in the series payable on day A.
(20)
The number of premiums in the series is equal to the number of
complete months falling within the period beginning with day A and
ending with day B.
(21)
The amount of each premium in the series is the amount of premium
15
A divided by the number of premiums in the series.
463C
Restricted relief qualifying policies: personal representatives and
trustees with deceased settlors
(1)
This section applies for the purpose of determining if personal
representatives are liable for tax charged under this Chapter as
20
provided for by section 466.
(2)
This section also applies for the purpose of determining if trustees
are liable for tax charged under this Chapter as provided for by
section 467 where—
(a)
condition B in that section is met, and
25
(b)
the person who created the trusts has died.
(3)
In relation to an event occurring on or after 6 April 2013, section 485
(disregard of certain events in relation to qualifying policies) does
not apply in relation to a policy if the policy is a restricted relief
qualifying policy (see paragraph A2 of Schedule 15 to ICTA).
30
(4)
If any personal representatives or trustees are liable for tax charged
under this Chapter as a result of subsection (3), section 463A(3) is to
apply in the case of the personal representatives or the trustees—
(a)
as if the reference to the individual were to the personal
representatives or to the trustees, and
35
(b)
as if the restricted relief qualifying policy were policy X.
(5)
For this purpose—
(a)
in section 463B(12)(a) the reference to the individual is to be
read as a reference to the deceased, and
(b)
a policy—
40
(i)
which would otherwise have ceased to be “related” to
policy X for the purposes of section 463B on the
deceased’s death, but
(ii)
which continues to run after the deceased’s death,

is to be treated as “related” to policy X after the deceased’s
45
death.

Finance Bill
Schedule 9 — Qualifying insurance policies
Part 2 — Restricted relief qualifying policies
223

(6)
A policy which is a new policy (as defined in paragraph 17 of
Schedule 15 to ICTA) in relation to a policy treated as “related” to
policy X under subsection (5)(b) or this subsection is also to be
treated as “related” to policy X if, apart from the deceased’s death, it
would meet the requirements of section 463B(12)(a) and (b) on its
5
issue.
(7)
A policy treated as “related” to policy X under subsection (5)(b) or (6)
ceases to be so treated if, apart from the deceased’s death, it would
cease to meet the requirements of section 463B(12)(a) and (b).
(8)
If section 528A also applies in the case of the personal representatives
10
or the trustees in relation to the gain, section 463A(3) is to be applied
to the gain before section 528A and, accordingly, the reduction to be
made under section 528A is to be determined by reference to the gain
as reduced by section 463A(3).
463D
Restricted relief qualifying policies: assignments and events
15
following assignments etc
(1)
This section applies if—
(a)
paragraph A1 of Schedule 15 to ICTA applies in relation to a
policy by virtue of paragraph A1(8) in consequence of an
event relating to the policy (“the relevant event”),
20
(b)
after the relevant event, the policy is not a qualifying policy
by virtue of paragraph A1(2), and
(c)
in relation to an event occurring after the relevant event—
(i)
an individual is liable for tax charged under this
Chapter on a gain from the policy, and
25
(ii)
but for the application of paragraph A1 in relation to
the policy, section 463A(3) would have applied in the
case of the individual so as to reduce the gain.
(2)
Section 463A(3) is to apply in the case of the individual in relation to
the gain as if the policy were policy X.
30
(3)
But, for this purpose, section 463B(5) has effect as if the references to
the policy X period were to the part of that period falling before the
relevant event.
(4)
If section 528 also applies in the case of the individual in relation to
the gain, section 463A(3) is to be applied to the gain before section
35
528 and, accordingly, the reduction to be made under section 528 is
to be determined by reference to the gain as reduced by section
463A(3).
463E
Transitional protection for policies issued in respect of insurances
made on or after 21 March 2012 but before 6 April 2013
40
(1)
This section applies if—
(a)
a policy (“policy Z”) is issued,
(b)
the issue of policy Z is an event falling within paragraph
A2(3) of Schedule 15 to ICTA by virtue of paragraph (e),
(c)
after its issue, policy Z is a qualifying policy but not a
45
restricted relief qualifying policy,
(d)
policy Z is varied on or after 6 April 2013 and the variation is
an event falling within paragraph A1(3) of Schedule 15,

Finance Bill
Schedule 9 — Qualifying insurance policies
Part 3 — Information powers
224

(e)
after the variation, policy Z is not a qualifying policy by
virtue of paragraph A1(2) of that Schedule,
(f)
in relation to an event occurring after the variation, an
individual is liable for tax charged under this Chapter on a
gain from policy Z, and
5
(g)
but for the application of paragraph A1 of Schedule 15 in
relation to policy Z, the individual would not have been
liable because of section 485.
(2)
The gain on which the tax is charged in the case of the individual is
reduced by the following amount—
10

where—
G is the amount of the gain (apart from this subsection),
TPV is the total amount of premiums payable under policy Z
before the variation, and
TP is the total amount of premiums payable under policy Z
15
before the chargeable event.
(3)
If section 528 also applies in the case of the individual in relation to
the gain, subsection (2) is to be applied to the gain before section 528
and, accordingly, the reduction to be made under section 528 is to be
determined by reference to the gain as reduced by subsection (2).
20
(4)
Section 463A(10) to (12) applies for the purposes of subsection (2).”
9
In section 485 (disregard of certain events in relation to qualifying policies)
after subsection (7) insert—
“(8)
This section is subject to sections 463A and 463C.”
Part 3
25
Information powers
10
After section 552ZA of ICTA insert—
“552ZB
  Regulations in relation to qualifying policies
(1)
The Commissioners for Her Majesty’s Revenue and Customs may
make regulations—
30
(a)
requiring relevant persons—
(i)
to provide prescribed information to persons who
apply for the issue of qualifying policies or who are,
or may be, required to make statements under
paragraph B3(2) of Schedule 15;
35
(ii)
to provide to an officer of Revenue and Customs
prescribed information about qualifying policies
which have been issued by them or in relation to
which they are or have been a relevant transferee;
(b)
making such provision (not falling within paragraph (a)) as
40
the Commissioners think fit for securing that an officer of
Revenue and Customs is able—

Finance Bill
Schedule 9 — Qualifying insurance policies
Part 3 — Information powers
225

(i)
to ascertain whether there has been or is likely to be
any contravention of the requirements of the
regulations or of paragraph B3(2) of Schedule 15;
(ii)
to verify any information provided to an officer of
Revenue and Customs as required by the regulations.
5
(2)
The provision that may be made by virtue of subsection (1)(b)
includes, in particular, provision requiring relevant persons to make
available books, documents and other records for inspection by or on
behalf of an officer of Revenue and Customs.
(3)
The regulations may—
10
(a)
make different provision for different cases or circumstances,
and
(b)
contain incidental, supplementary, consequential,
transitional, transitory or saving provision.
(4)
In this section—
15
“prescribed” means prescribed by the regulations,
“qualifying policy” includes a policy which would be a
qualifying policy apart from—
(a)
paragraph A1(2), B1(2), B2(2) or B3(3) of Schedule 15,
or
20
(b)
paragraph 17(2)(za) of that Schedule (including as
applied by paragraph 18), and
“relevant person” means a person—
(a)
who issues, or has issued, qualifying policies, or
(b)
who is, or has been, a relevant transferee in relation to
25
qualifying policies.
(5)
For the purposes of this section a person (“X”) is at any time a
“relevant transferee” in relation to a qualifying policy if the
obligations under the policy of its issuer are at that time the
obligations of X as a result of there having been a transfer to X of the
30
whole or any part of a business previously carried on by the issuer.”
11
In section 552B of ICTA (duties of overseas insurers’ tax representatives) in
subsection (2)—
(a)
after paragraph (b) omit “and”, and
(b)
after paragraph (c) insert “and
35
(d)
any duties imposed by regulations under section
552ZB,”.
12
In section 98 of TMA 1970 (special returns etc), in the second column of the
Table, after the entry for regulations under section 552ZA(6) of ICTA
insert—
40

“regulations under section 552ZB;”.