Commentary

E1.453B Life insurance gains—guaranteed income bonds

Personal and employment tax

E1.453B Life insurance gains—guaranteed income bonds

E1.453B Life insurance gains—guaranteed income bonds

A 'guaranteed income bond contract' means a life insurance contract under the SI 2001/544, Sch 1, Pt II paras I, III1. Such a bond is designed to provide an income each year with a lump sum on maturity.

A payment under such a bond which would otherwise be treated as interest or an annual payment is not so treated but is treated as a part surrender unless2:

  1.  

    (a)     it is paid under an annuity contract or in the course of the insurance company's pension business

  2.  

    (b)     it is a payment under provisions in the policy

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