52 Stamp Duty On Certain Substituted Life Policies

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Motion made, and Question,

That the following provisions shall have effect for the period beginning 25th March 1982 and ending 31 days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973—

(1) Where, as a result of a variation in the life or lives for the time being assured, a policy (in this Resolution referred to as "the earlier policy") which is a qualifying policy within the meaning of Part I of Schedule 1 to the Income and Corporation Taxes Act 1970 is replaced by a new policy (in this Resolution referred to as "the later policy") which, in accordance with the rules in paragraph 9 of that Schedule, is also a qualifying policy then, subject to paragraph (2) below, stamp duty shall not be chargeable on the policy of life insurance which is the later policy if it comes into existence on or after 25th March 1982.

(2) Paragraph (1) above does not apply unless—

(a) any sum which would otherwise become payable by the insurer on or in connection with the coming to an end of the earlier policy is retained by the insurer and applied in the discharge of some or all of the liability for any premium becoming due under the later policy; and

(b) no consideration in money or money's worth (other than the benefits for which provision is made by the later policy) is receivable by any person on or in connection with the coming to an end of the earlier policy or the coming into existence of the later policy.

And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of section 50 of the Finance Act 1973.— [Sir Geoffrey Howe.]

put forthwith pursuant to Standing Order No. 94 (Ways and Means motions), and agreed to.

Volume 20: debated on Monday 15 March 1982