Finance Act, 1985
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Relief in respect of certain policies of insurance. |
60.—(1) In this section— | |
“qualifying insurance policy” means a policy of insurance— | ||
(a) which is in a form approved by the Commissioners for the purposes of this section; | ||
(b) in respect of which annual premiums are paid by the insured during his life; and | ||
(c) which is expressly effected under this section for the purpose of paying relevant tax; | ||
“relevant tax” means inheritance tax payable in respect of an inheritance (excluding, in the computation of such tax, an interest in a qualifying insurance policy) taken under a disposition made by the insured, where the inheritance is taken on or after the date of death of the insured and not later than one year after that death. | ||
(2) (a) An interest in a qualifying insurance policy which is comprised in an inheritance taken under a disposition made by the insured shall, to the extent that the proceeds thereof are applied in paying relevant tax, be exempt from tax in relation to that inheritance and shall not be taken into account in computing tax. | ||
(b) An interest in a qualifying insurance policy which is comprised in an inheritance taken under a disposition made by the insured shall, to the extent that the proceeds thereof are not applied in paying relevant tax, and notwithstanding the provisions of the Principal Act, be deemed to be taken on a day immediately after— | ||
(i) the date of death of the insured; or | ||
(ii) the latest date (if any) on which an inheritance is taken in respect of which that relevant tax is payable, | ||
whichever is the later. | ||
(3) Section 143 of the Income Tax Act, 1967 , is hereby amended by the substitution, in subsection (5), of the following paragraphs for paragraph (b)— | ||
“(b) be given in respect of premiums or payments payable during the period of deferment in respect of a policy of deferred assurance; or | ||
(c) be given for the year 1985-86 and subsequent years of assessment in respect of premiums payable in respect of a qualifying insurance policy within the meaning of section 60 of the Finance Act, 1985:”. |