718-070 Company gains on investment life insurance contracts (periods ended on or after 1 April 2008)
It was announced in the 2007 Pre-Budget Report that legislation would be introduced to bring life insurance policies and life annuity contracts held by companies, other than insurance companies, within the loan relationships legislation. This was achieved with the enactment of FA 2008, Sch. 13 (now rewritten to CTA 2009, Pt. 6, Ch. 11) which applies in respect of accounting periods beginning on or after 1 April 2008. For accounting periods beginning on or before 31 March 2008, gains on life insurance policies and life annuity contracts owned by companies are taxable under the chargeable event rules formerly at ICTA 1988, Ch. 2, Pt. 13 (see ¶703-150).