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Amendment of Part 26 (life assurance companies) and Part 27 (unit trusts and offshore funds) of Principal Act
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35. (1) Chapter 6 of Part 26 of the Principal Act is amended—
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(a) in section 730J by substituting the following for paragraph (a):
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“(a) where the person is not a company—
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(i) the rate of income tax to be charged on the income represented by the payment, where the payment is not made in consideration of the disposal, in whole or in part, of the foreign life policy, shall, notwithstanding section 15, be—
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(I) subject to subparagraph (ii), in the case of a foreign life policy which is a personal portfolio life policy, at the rate of 60 per cent, and
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(II) in any other case, at the rate of 41 per cent,
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and
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(ii) in the case of a foreign life policy which is a personal portfolio life policy and the income represented by the payment is not correctly included in a return made by the person, the income shall, notwithstanding section 15, be charged to income tax at the rate of 80 per cent,”,
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and
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(b) in section 730K, in subsection (1), by substituting the following for all of the words from and including “and details of” to the end of that subsection:
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“then, notwithstanding section 594, the amount of the gain shall be treated as an amount of income chargeable to tax under Case IV of Schedule D, and where the person is not a company the rate of income tax to be charged on that income shall, notwithstanding section 15, be—
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(a) (i) subject to paragraph (b), in the case of a foreign life policy which is a personal portfolio life policy, at the rate of 60 per cent, and
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(ii) in any other case, at the rate of 41 per cent,
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and
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(b) in the case of a foreign life policy which is a personal portfolio life policy and the details of the disposal are not correctly included in a return made by the person, at the rate of 80 per cent.”.
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(2) Chapter 4 of Part 27 of the Principal Act is amended—
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(a) in section 747D by substituting the following for paragraph (a):
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“(a) where the person is not a company—
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(i) the rate of income tax to be charged on the income represented by the payment, where the payment is not made in consideration of the disposal of an interest in the offshore fund, shall, notwithstanding section 15, be—
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(I) subject to subparagraph (ii), in the case of an offshore fund which is a personal portfolio investment undertaking, at the rate of 60 per cent, and
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(II) in any other case, at the rate of 41 per cent,
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and
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(ii) in the case of an offshore fund which is a personal portfolio investment undertaking and the income represented by the payment is not correctly included in a return made by the person, the income shall, notwithstanding section 15, be charged to income tax at the rate of 80 per cent,”,
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and
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(b) in section 747E(1) by substituting the following for paragraph (b):
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“(b) where the person is not a company, the rate of income tax to be charged on that income shall, notwithstanding section 15, be—
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(i) in the case of an offshore fund which is a personal portfolio investment undertaking—
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(I) subject to clause (II), at the rate of 60 per cent, and
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(II) where the details of the disposal are not correctly included in a return made by the person, at the rate of 80 per cent,
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and
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(ii) in any other case, at the rate of 41 per cent.”.
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