IPTM3530 - Chargeable events:
calculating gains: death, maturity or full surrender: qualifying
endowment policies held as security for company debts
Where the chargeable event is death, maturity or full surrender,
and immediately before the happening of the event
- the policy was a qualifying endowment
policy,
IPTM3310, held as security for a debt
owned by a company subject to the detailed conditions below
- the amount of the debt is greater than the
sum of premiums paid to date
- the company makes a claim within two years
of the end of the accounting period in which the chargeable event
occurs
then the amount of the debt is substituted for the premiums paid
in computing
total deductions.
The company debt conditions are
- throughout the policy period, the policy
rights were held as security for a debt owed by the company
- the capital sum payable under the policy
on death is at least the amount of debt when the insurance was
made
- any sum payable under the policy as a
result of the event is, so far as possible, applied in repaying the
debt
- the borrowing was applied for the purposes
of
- purchasing an interest in land to be occupied by
the company for the purposes of its trade
- constructing, extending or improving, not
repairing or maintaining, buildings occupied for the purposes of
its trade.
If the debt is incurred to repay another debt, both count as
debts for the above purpose.
