OpenLegislation

Section 552 Information: duty of insurers.F1

United Kingdom

(1)

Where a chargeable event F2. . . has happened in relation to any policy or contract, the body by or with whom the policy or contract was issued, entered into or effected shall—

(a)

unless satisfied that no gain is to be treated as arising by reason of the event, deliver to the appropriate policy holder before the end of the relevant three month period a certificate specifying the information described in subsection (5) below; and

(b)

if the condition in paragraph (a) or (b) of subsection (2) below is satisfied, deliver to the inspector before the end of the relevant three month period a certificate specifying the information described in subsection (5) below together with the name and address of the appropriate policy holder.

(2)

For the purposes of this section—

(a)

the condition in this paragraph is that the event is an assignment for money or money’s worth of the whole of the rights conferred by the policy or contract; or

(b)

the condition in this paragraph is that the amount of the gain, or the aggregate amount of the gain and any gains connected with it, exceeds one half of the basic rate limit for the relevant year of assessment.

(3)

If, in the case of every certificate which a body delivers under subsection (1)(a) above which relates to a gain attributable to a year of assessment F3. . . , the body also delivers to the inspector—

(a)

before the end of the relevant three month period for the purposes of subsection (1)(b) above,

(b)

by a means prescribed by the Board for the purposes of this subsection under section 552ZA(5), and

(c)

in a form so prescribed in the case of that means,

a certificate specifying the same information as the certificate under subsection (1)(a) together with the name and address of the appropriate policy holder, the body shall be taken to have complied with the requirements of subsection (1)(b) above in relation to that year of assessment F4. . . so far as relating to the chargeable events to which the certificates relate.

(4)

Where a certificate is not required to be delivered under subsection (1)(b) above in the case of any chargeable event—

(a)

the inspector may by notice require the body to deliver to him a copy of any certificate that the body was required to deliver under subsection (1)(a) above which relates to the chargeable event; and

(b)

it shall be the duty of the body to deliver such a copy within 30 days of receipt of the notice.

(5)

The information to be given to the appropriate policy holder pursuant to subsection (1)(a) above or the inspector pursuant to subsection (1)(b) above is—

(a)

any unique identifying designation given to the policy or contract;

(b)

the nature of the chargeable event and—

(i)

the date on which it happened; and

(ii)

if it is a chargeable event by virtue of F5. . . F6section 514(1) of ITTOIA 2005 (chargeable events where transaction-related calculations show gains), the date on which F7the insurance year ends;

(c)

if the event is the assignment of all the rights conferred by the policy or contract, such of the following as may be required for computing the amount of the gain to be treated as arising by virtue of F8. . . F9Chapter 9 of Part 4 of ITTOIA 2005—

(i)

F10. . . F11the amount or value of any capital sums of a kind referred to in section 492(1)(b) to (e) of ITTOIA 2005;

(ii)

the amounts previously paid under the policy or contract by way of premiums or otherwise by way of consideration for an annuity;

(iii)

F12. . . F13the amount of so much of any payment previously made on account of an annuity as is exempt under section 717 of ITTOIA 2005;

(iv)

the value of any previously assigned parts of or shares in the rights conferred by the policy or contract;

(v)

F14. . . F15the total of the amounts of gains treated as arising on previous chargeable events within section 509(1) or 514(1) of ITTOIA 2005;

(d)

except where paragraph (c) above applies, the amount of the gain treated as arising by reason of the event;

(F16e)

the number of years relevant for computing the annual equivalent of the amount of the gain for the purposes of subsection (1) of section 536 of ITTOIA 2005 (top slicing relieved liability: one chargeable event), apart from subsections (6) and (8) of that section;

(F17f)

on the assumption that section 465 of ITTOIA 2005 (person liable: individuals) has effect in relation to the gain —

(i)

whether an individual would fall to be treated as having paid income tax at the F18basic rate on the amount of the gain in accordance with section 530 of that Act; and

(ii)

if so, except in a case where paragraph (c) above applies, the amount of such tax that would fall to be so treated as paid.

C1(6)

For the purposes of subsection (1)(a) above, the relevant three month period is whichever of the following periods ends the latest—

(a)

the period of three months following the happening of the chargeable event;

(b)

if the event is a surrender or assignment which is a chargeable event by virtue of F19. . . F20section 514(1) of ITTOIA 2005 F21. . . , the period of three months following the end of F22the insurance year in which the event happens;

(c)

if the event is a death or an assignment of the whole of the rights or a surrender or assignment which is a chargeable event by virtue of F23. . . F24section 514(1) of ITTOIA 2005 . . . , the period of three months beginning with receipt of written notification of the event.

(7)

For the purposes of subsection (1)(b) above, the relevant three month period is whichever of the following periods ends the latest—

(a)

the period of three months following the end of the year of assessment F25. . . in which the event happened;

(b)

if the event is a surrender or assignment which is a chargeable event by virtue of F26section 514(1) of ITTOIA 2005, the period of three months following the end of the insurance year in which the event happens;

(c)

if the event is a death or an assignment, the period of three months beginning with receipt of written notification of the event;

(d)

if a certificate under subsection (1)(b) above would not be required in respect of the event apart from the happening of another event, and that other event is one of those mentioned in paragraph (c) above, the period of three months beginning with receipt of written notification of that other event.

(8)

For the purposes of this section the cases where a gain is connected with another gain are those cases where—

(a)

both gains arise in connection with policies or contracts containing obligations which, immediately before the chargeable event, were obligations of the same body;

(b)

the policy holder of those policies or contracts is the same;

(c)

both gains are attributable to the same year of assessment F27. . . ;

(d)

the terms of the policies or contracts are the same, apart from any difference in their maturity dates; and

(e)

the policies or contracts were issued in respect of insurances made, or were entered into or effected, on the same date.

(9)

For the purposes of this section, the year of assessment F28. . . to which a gain is attributable is—

(a)

in the case of a gain treated as arising by virtue of F29subsection (1) of section 514 of ITTOIA 2005, the year of assessment which includes the end of the insurance year mentioned in subsection (3) and (4) of that section; or

(b)

in any other case, the year of assessment F30. . . in which happens the chargeable event by reason of which the gain is treated as arising.

(10)

In this section—

  • “amount”, in relation to any gain, means the amount of the gain apart from F31. . . F32section 528 of ITTOIA 2005;

  • “appropriate policy holder” means—

    1. (a)

      in relation to an assignment of part of or a share in the rights conferred by a policy or contract, any person who is both—

      1. (i)

        the policy holder, or one of the policy holders, immediately before the assignment; and

      2. (ii)

        the assignor or one of the assignors; and

    2. (b)

      in relation to any other chargeable event, the person who is the policy holder immediately before the happening of the event;

  • F33“chargeable event” means an event which is a chargeable event within the meaning of F34. . . Chapter 9 of Part 4 of ITTOIA 2005;

  • F35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • F36“insurance year” has the same meaning as in Chapter 9 of Part 4 of ITTOIA 2005 (see section 499 of that Act);

  • “the relevant year of assessment”, in the case of any gain, means—

    1. (a)

      the year of assessment to which the gain is attributable, F37. . .

    2. (b)

      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • F38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11)

F39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12)

This section is supplemented by section 552ZA.

(F40F4113)

For the purposes of this section—

(a)

section 491(2) of ITTOIA 2005 is taken to have effect as if, in the definition of “PG”, the words from “but” to the end were omitted, and

(b)

no account is to be taken of the effect of F42section 465B or 541A of that Act.

(F4314)

For the purposes of this section no account is to be taken of the effect of sections 528 and 528A of ITTOIA 2005.

Annotations

Textual amendments

F1

Ss. 552, 552ZA substituted for s. 552 (with effect in accordance with s. 83(3) of the amending Act) by Finance Act 2001 (c. 9), Sch. 28 para. 18

F2

Words in s. 552(1) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 222(2), Sch. 3 (with Sch. 2)

F3

Words in s. 552(3) omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(2)(a)

F4

Words in s. 552(3) omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(2)(b)

F5

Words in s. 552(5)(b)(ii) omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(3)(a)(i)

F6

Words in s. 552(5)(b)(ii) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 222(3)(a) (with Sch. 2)

F7

Words in s. 552(5)(b)(ii) substituted (with effect in accordance with Sch. 14 para. 18 of the amending Act) by Finance Act 2008 (c. 9), Sch. 14 para. 4(3)(a)(ii)

F8

Words in s. 552(5)(c) omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(3)(b)(i)

F9

Words in s. 552(5)(c) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 222(3)(b)(i) (with Sch. 2)

F10

Words in s. 552(5)(c)(i) omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(3)(b)(ii)

F11

Words in s. 552(5)(c)(i) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 222(3)(b)(ii) (with Sch. 2)

F12

Words in s. 552(5)(c)(iii) omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(3)(b)(iii)

F13

Words in s. 552(5)(c)(iii) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 222(3)(b)(iii) (with Sch. 2)

F14

Words in s. 552(5)(c)(v) omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(3)(b)(iv)

F15

Words in s. 552(5)(c)(v) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 222(3)(b)(iv) (with Sch. 2)

F16

S. 552(5)(e) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 222(3)(c) (with Sch. 2)

F17

S. 552(5)(f) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 222(3)(d) (with Sch. 2)

F18

Words in s. 552(5)(f)(i) substituted (with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 43

F19

Words in s. 552(6)(b) omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(4)(a)(i)

F20

Words in s. 552(6)(b) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 222(4)(a)(i) (with Sch. 2)

F21

Closing bracket in s. 552(6)(b) omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(4)(a)(ii)

F22

Words in s. 552(6)(b) substituted (with effect in accordance with Sch. 14 para. 18 of the amending Act) by Finance Act 2008 (c. 9), Sch. 14 para. 4(4)(a)(iii)

F23

Words and closing bracket in s. 552(6)(c) omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(4)(b)

F24

Words in s. 552(6)(c) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 222(4)(b) (with Sch. 2)

F25

Words in s. 552(7)(a) omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(5)(a)

F26

Words in s. 552(7)(b) substituted (with effect in accordance with Sch. 14 para. 18 of the amending Act) by Finance Act 2008 (c. 9), Sch. 14 para. 4(5)(b)

F27

Words in s. 552(8)(c) omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(6)

F28

Words in s. 552(9) omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(7)(a)

F29

Words in s. 552(9)(a) substituted (with effect in accordance with Sch. 14 para. 18 of the amending Act) by Finance Act 2008 (c. 9), Sch. 14 para. 4(7)(b)

F30

Words in s. 552(9)(b) omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(7)(c)

F31

S. 552(10): words in definition of "amount" omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(8)(a)

F32

S. 552(10): words in definition of "amount" inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 222(7)(a) (with Sch. 2)

F33

S. 552(10): definition of "chargeable event" inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 222(7)(b) (with Sch. 2)

F34

S. 552(10): words in definition of "chargeable event" omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(8)(b)

F35

S. 552(10): definition of "financial year" omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(8)(c)

F36

S. 552(10): definition of "insurance year" inserted (with effect in accordance with Sch. 14 para. 18 of the amending Act) by Finance Act 2008 (c. 9), Sch. 14 para. 4(8)(d)

F37

S. 552(10): in definition of "the relevant year of assessment", para. (b) and preceding word omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(8)(e)

F38

S. 552(10): definitions of "section 546 excess" and "year" omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(8)(f)

F39

S. 552(11) omitted (with effect in accordance with Sch. 14 para. 18 of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 4(9)

F40

S. 552(13) inserted (with effect in accordance with s. 29(4) of the amending Act) by Finance Act 2007 (c. 11), s. 29(2)

F41

S. 552(13) substituted (with effect in accordance with s. 11(4)-(6) of the amending Act) by Finance Act 2011 (c. 11), s. 11(3)

F42

Words in s. 552(13) substituted (with effect in accordance with Sch. 45 para. 153(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 45 para. 144

F43

S. 552(14) inserted (with effect in accordance with Sch. 8 para. 7 of the amending Act) by Finance Act 2013 (c. 29), Sch. 8 para. 6

Modifications

C1

S. 552(6) modified (9.4.2003) by Finance Act 2003 (c. 14), s. 171(1)(3), Sch. 34 para. 5

Notes on Chapter II

Modifications

C1

Pt. 13 Ch. 2 restricted (with effect in accordance with s. 105(1) of the affecting Act) by Finance Act 1996 (c. 8), Sch. 13 para. 3(2) (with Sch. 13 para. 16)

C2

Pt. 13 Ch. 2 applied (with modifications) (6.4.1999) by The Individual Savings Account Regulations 1998 (S.I. 1998/1870), regs. 35(7), 36(3)-(7) (as amended by The Individual Savings Account (Amendment) Regulations 1998 (S.I. 1998/3174), reg. 12)

C3

Pt. 13 Ch. 2 applied (with modifications) (6.4.1999 with effect in accordance with reg. 1 of the affecting S.I.) by The Personal Portfolio Bonds (Tax) Regulations 1999 (S.I. 1999/1029), reg. 6(2)-(8) (as amended (6.4.2002) by The Personal Portfolio Bonds (Tax) (Amendment) Regulations 2002 (S.I. 2002/455), regs. 1, 2)

C4

Pt. 13 Ch. 2 modified (9.4.2003) by Finance Act 2003 (c. 14), s. 171(1)(3), Sch. 34 para. 3

C5

Pt. 13 Ch. 2 modified (9.4.2003) by Finance Act 2003 (c. 14), s. 171(1)(3), Sch. 34 para. 15

C6

Pt. 13 Ch. 2 modified (6.4.2005) by The Child Trust Funds Regulations 2004 (S.I. 2004/1450), regs. 1, 2(1), 38(3)-(8); S.I. 2004/3369, art. 2(1)

C7

Pt. 13 Ch. 2 modified (20.7.2005) by Finance (No. 2) Act 2005 (c. 22), Sch. 7 para. 14(5)-(7)

C8

Pt. 13 Ch. 2 modified (with effect in accordance with Sch. 13 para. 5 of the modifying Act) by Finance Act 2008 (c. 9), Sch. 13 para. 6