# Income Tax (Trading and Other Income) Act 2005, Section 490: Last payment under guaranteed income bonds etc. treated as total surrender


(1) This section applies to a payment that would fall within section 500(d) (payments under guaranteed income bonds etc. treated as surrenders of part of the rights under the contract) apart from section 504(5) (which prevents payments comprising the whole of the last benefit to be paid under such contracts from being so treated).
(2) The payment is treated for the purposes of this Chapter as the surrender of all the rights under the contract.
(3) A payment to which this section applies is not regarded as interest or as an annual payment for any income tax purposes.

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Source: https://www.legislation.gov.uk/ukpga/2005/5/section/490 (the official version)
Page: https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-490
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.