Finance Act 2025

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Amendment of section 41 of Principal Act (when interest in assurance policy becomes interest in possession)

88. (1) Section 41 of the Principal Act is amended—

(a) in subsection (1), by the substitution of “Subject to subsection (1A), for the purposes of this Act” for “For the purposes of this Act”, and

(b) by the insertion of the following subsection after subsection (1):

“(1A) For the purposes of this Act, where an interest in a policy of assurance on human life is disposed of in whole or in part prior to the occurrence of either of the events specified in paragraph (a) or (b) of subsection (1), then the interest or, as the case may be, that part of the interest, is deemed to become an interest in possession at the time of the disposal.”.

(2) Subsection (1) shall apply to a disposal referred to in subsection (1A) (inserted by subsection (1)(b)) of section 41 of the Principal Act made on or after 1 January 2026.